Dynamic Mean Deviation and Reversion
DMDR is a BREAKOUT INDICATOR. It is designed to help the user identify periods of consolidation, and more importantly, breakouts. It does this by comparing recent volatility with the longer term.
It is easy to use, simply set the sensitivity to a value that suits the timeframe (This will be fairly obvious. Due to the way in which the indicators algorithm functions, this value may require tweeking from time to time to keep it up to date with current market conditions, but this will also seem intuitive). The value of the exponential moving average the indicator follows can be changed also.
DMDR can provide tradable breakout indications, and as the astute trader knows; reversals often follow...