Volatility Exhaustion

User Description

Volatility Exhaustion is a unique indicator that utilizes special volatility analysis technology. It identifies critical moments in the market when current activity reaches extreme levels relative to historical data.

Key Features:

Simple Interpretation: The indicator uses a binary signal system
Versatility: Works on any timeframe and instrument
Effectiveness: Especially useful in flat and trending markets
Visual Clarity: Clear color differentiation of signals

Visual Display:

🔵 Blue histogram bars (height 10): Signal of increased market activity - favorable moment for entry
🔴 Red histogram bars (height 10): Period of low activity - recommended to refrain from trading
No bars: Insufficient data for analysis

Technical Specifications

Input Parameters:

• Period (default: 14): Length of the analyzed historical period (default 14 bars for analysis)

• Factor (default: 1.5): Signal sensitivity coefficient (1.5 threshold sensitivity level)

Indicator Buffers:

1. Buffer 0 (blue): Contains value 10 when signal is present, 0 when absent

2. Buffer 1 (red): Contains value 10 when signal is absent, 0 when present

3. Buffers 2 and 3: Internal calculation buffers (not used for trading)

Connection to Expert Advisor

// Global variable declaration
int handle_volatility_exhaustion = INVALID_HANDLE;
double signal_buffer[];

// In OnInit() function
//+------------------------------------------------------------------+
//| Expert initialization function                                   |
//+------------------------------------------------------------------+
int OnInit()
{
    // Reset all GetLastError() errors
    ResetLastError();

    handle_volatility_exhaustion = iCustom(_Symbol, _Period, "Volatility Exhaustion.ex5",
        14,    // Period
        1.5    // Factor
    );

    if(handle_volatility_exhaustion == INVALID_HANDLE)
    {
        Print("Error loading Volatility Exhaustion indicator: ", GetLastError());
        return INIT_FAILED;
    }

    ArraySetAsSeries(signal_buffer, true);

    return(INIT_SUCCEEDED);
}