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VolatilityEntry

This indicator is based loosly upon the Stocks and Commodities Magazine V 23:2 (14-20) article "The Truth About Volatility".

This indicator has two lines drawn in the main chart window:

  1. Volatility Long Entry Indicator
  2. Volatility Short Entry Indicator

Functional Description of Volatility Entry and Profit Indicator:


Signal

Long Signal: C>(LLV(L,20) + 2*ATR(10))

If the Close (C) is greater than the lowest low value (LLV based on the low of the last 20 periods) plus twice the 10-period ATR, then Long Signal.

Short Signal: C<(HHV(H,20)-2*ATR(10))

If the Close (C) is less than the highest high value (HHV based on the high of the last 20 periods) minus twice the 10-period ATR, then Short Signal.


How It Is Used in Trading

It must be used together with a Trend Following Indicator such as Moving Average.

  • BUY when the VolatilityEntry Indicator gives a Long Signal AND the currency is also in an up-trend
  • SELL when the VolatilityEntry Indicator gives a Short Signal AND the currency is also in a down-trend

Use Trailing Stop or Take Profit to exit trades. 

Basically, this indicator attempts to profit by trading following the completion of brief counter-trends in anticipation that the primary trend will resume.

Maksym Mudrakov
8449
2016.08.31 14:42 
 

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Vadim Strelkov
7812
2014.05.05 13:45 
 

User didn't leave any comment to the rating