Fabii Volatility Bias
- Indicators
-
Fabien Georges Andre Guillemaud
I develop custom indicators and trading tools for MetaTrader 5. - Version: 1.0
- Activations: 20
Volatility tells you how much the market moves. This tells you which side is winning. Any pair, any timeframe, any market. No repaint. Free trial in the Strategy Tester.
▬▬▬ THE PROBLEM ▬▬▬
Volatility tells you how much the market is moving, but not which side is doing the moving. A rising ATR looks the same whether buyers or sellers are in control. So you are left guessing: is this expansion pushing up, or down? Most volatility tools stay silent on direction, and most directional tools ignore volatility. You end up reading two indicators and joining the dots yourself.
▬▬▬ HOW IT WORKS ▬▬▬
Volatility Bias splits realized volatility into its up-moves and its down-moves, then compares the two. When upside moves carry more energy than downside moves, the histogram turns green and rises above zero — a bullish volatility bias. When downside dominates, it turns red and drops below zero. A neutral deadzone around zero keeps it quiet when neither side is in control, so you are not chasing noise.
This is the realized semi-variance decomposition (RV+ versus RV-), a measure used in quantitative finance to separate upside and downside risk. No other tool on the Market turns it into a live directional histogram. The value is bounded between -1 and +1, so it reads the same way on every symbol and every timeframe.
▬▬▬ KEY FEATURES ▬▬▬
- Directional volatility bias in one sub-window: green above zero (bullish), red below (bearish).
- No repaint — the histogram is final on bar close and never redraws past bars.
- Neutral deadzone filters out sideways noise (adjustable).
- Bounded -1 to +1 — consistent reading across all symbols and timeframes.
- Multi-timeframe: read the bias of a higher timeframe on your current chart.
- Alerts on a new bullish or bearish bias (popup, sound, push) — off by default.
- Works on any pair, indices, metals, crypto and stocks; any timeframe.
- Exposed buffers for use in your own EA via iCustom.
▬▬▬ INPUTS ▬▬▬
| Parameter | What it does | Recommended |
|---|---|---|
| Period | Lookback window of the calculation | 20 |
| Deadzone | Neutral band around zero (anti-flicker) | 0.10 |
| Higher TF | Read the bias of a higher timeframe (off = current) | current |
| Alert popup | Popup on a new bias signal | off |
| Alert sound | Sound on a new bias signal | off |
| Alert push | Push notification to mobile | off |
| Bars limit | Limit history to the N most recent bars | on / 500 |
▬▬▬ HOW TO USE IT ▬▬▬
- Attach it to any chart. It opens in a sub-window below price.
- Green bars above zero = upside volatility dominates (bullish bias). Red bars below zero = downside dominates (bearish bias).
- Use it as a confirmation filter: take longs when the bias is green, shorts when it is red, and stand aside inside the neutral deadzone.
- For a broader view, set a higher timeframe so your chart shows the bias of the timeframe above.
- The bias is strongest on equities and indices, where up and down volatility differ most; it also works across forex, metals and crypto.
▬▬▬ SUPPORT ▬▬▬
Questions? Message me — I answer within 24h.
▬▬▬ GET IT ▬▬▬
Launch price is $30 and rises to $49 after the first 20 sales. Add it to your chart and see which side volatility is really on. Follow my profile for updates and new tools.
(For educational and analytical use. No indicator guarantees profit; test it in the Strategy Tester and on demo before trading live.)
