Drop and Volatility Shield Monitor
- 지표
- Shunsuke Kanaya
- 버전: 1.0
Drop & Volatility Shield Monitor – Volatility/Spread Status Bar (MT4)
Overview
Drop & Volatility Shield Monitor is an MT4 chart visualization indicator that turns current market conditions into a simple color status bar at the top of the chart.
It does not generate entries and it does not place, modify, or close any orders.
Instead, it highlights when conditions are:
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NORMAL (green) – regular conditions
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COOL (red) – high volatility, sharp drops, or abnormal spread (cool-down zone)
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RECOV (orange) – recovering after a shock (extra caution)
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[FREEZE] tag – short “do-nothing” moments after a series of bearish M1 bars
This tool was designed as an extra layer of awareness for short-term trading (especially on XAUUSD), and it can be used on any symbol and timeframe with adjusted inputs.
What you see on the chart
At the top-center of the chart you will see a one-line status bar, for example:
Drop Shield: NORMAL | ATRx1.05 | Spr: 0.30/0.60
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Drop Shield: current state → NORMAL / COOL / RECOV
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[FREEZE]: added when short-term conditions are considered unstable
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ATRx1.xx: current M1 ATR divided by its baseline (e.g. x2.50 = 2.5× normal)
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Spr: current spread in USD and your configured maximum spread threshold
The label color changes according to the state:
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Green = NORMAL
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Red = COOL
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Orange = RECOV
At a glance you can see whether conditions are calm, volatile, or recovering after a shock.
Who is it for?
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Scalpers and day traders on M1–M15
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Traders using grid / averaging-style position management
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EA users who want a simple “traffic light” for market conditions
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Anyone who wants to quickly see when volatility or spread becomes abnormal
This indicator can be useful around scheduled events, during unexpected spikes, or when spreads widen suddenly.
How it works (core logic)
1) Drop filter (DropTF + DropThreshold_USD)
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Uses a configurable drop timeframe (default: M15).
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On every closed bar of DropTF, it checks the difference between the last two closes.
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If the price dropped by more than DropThreshold_USD, the state switches to COOL.
Example:
DropTF = M15, DropThreshold_USD = 10.0
→ If M15 closes 10 USD lower than the previous bar, COOL is triggered.
2) ATR-based volatility filter (ATR_Period, ATR_BaseBars, ATR_CoolMultiplier)
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Calculates ATR on M1 with period ATR_Period.
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Builds a “baseline ATR” using the last ATR_BaseBars M1 candles.
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Shows the ratio ATRx1.xx = current ATR / baseline ATR.
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If this ratio is above ATR_CoolMultiplier, the shield switches to COOL.
Example:
ATRx2.50 means volatility is 2.5× higher than usual → COOL.
3) Spread gate (SpreadMax_USD)
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Monitors Ask – Bid in USD.
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If the spread is greater than SpreadMax_USD, the shield goes to COOL, even if candles look calm.
4) RECOV and FREEZE
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After staying in COOL for BarCoolSeconds, the shield moves to RECOV (recovery).
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If RequireRebound = true, NORMAL is restored only when:
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recent M1 closes show a small rebound (bullish candles),
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spread goes back below SpreadMax_USD,
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close price is above EMA20 + ReboundOffset_USD.
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If RequireRebound = false, the shield goes from COOL → NORMAL automatically once the cool-down time has passed.
When 3 consecutive bearish M1 candles are detected, a short FREEZE period of FreezeSeconds is applied and “[FREEZE]” is added to the status text.
This highlights very short “hands-off” moments after a rapid move.
Typical usage
Manual scalping / day trading
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NORMAL (green): trade your strategy as usual
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COOL (red): avoid new entries or reduce risk
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RECOV (orange): conditions are improving → start smaller and confirm stability
EA operation (visual monitoring)
When running EAs that add positions, you can use the shield as a visual dashboard and decide whether to:
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pause new entries,
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reduce lot sizes,
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or wait until conditions return to NORMAL.
The indicator itself does not control any EA.
Input parameters
(All inputs use English names.)
Drop / basic logic
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UseDropFilter – enable/disable the filter logic (true/false)
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DropTF – timeframe used to detect sudden drops (M15 recommended)
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DropThreshold_USD – USD drop between two closes on DropTF to trigger COOL
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BarCoolSeconds – minimum seconds to stay in COOL after a trigger
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FreezeSeconds – FREEZE time after 3 consecutive bearish M1 bars
ATR (volatility) filters
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ATR_Period – ATR period on M1 (default: 14)
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ATR_BaseBars – number of past M1 bars for baseline ATR (default: 100)
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ATR_CoolMultiplier – ratio threshold to trigger COOL (e.g. 2.5 = 2.5× baseline)
Spread gate
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SpreadMax_USD – maximum allowed spread in USD before switching to COOL
Recovery conditions (RECOV → NORMAL)
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RequireRebound – if true, wait for rebound conditions; if false, return automatically after cool-down time
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ReboundOffset_USD – how far above EMA20 price must be to consider rebound valid
Display / UI
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PanelTopCenter – show status bar at the top center
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PanelCorner – chart corner when PanelTopCenter = false
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PanelXDistance / PanelYDistance – pixel offsets
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MinimalMode – true: 1-line minimal bar, false: 2 lines (adds details)
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ColorNormal / ColorCool / ColorRecov / ColorTextBase – label colors
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PanelFontSize – font size
Recommended defaults (example for XAUUSD, M1–M15)
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DropTF = M15
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DropThreshold_USD = 10.0
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ATR_Period = 14
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ATR_BaseBars = 100
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ATR_CoolMultiplier = 2.5
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SpreadMax_USD = 0.60
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BarCoolSeconds = 300
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FreezeSeconds = 60
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ReboundOffset_USD = 0.50
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MinimalMode = true
If COOL triggers too often, increase DropThreshold_USD and/or ATR_CoolMultiplier.
If it rarely becomes COOL, reduce these values slightly.
Compatibility
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Platform: MetaTrader 4
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Type: Custom indicator (does not place or manage trades)
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Symbols: any (tuned for XAUUSD, adjustable for FX/CFD)
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Timeframes: any (designed for M1–M15 monitoring)
Disclaimer
This is a visual monitoring tool, not an automatic trading system.
It does not guarantee profit or prevent losses. Always test on a demo account first and adjust parameters for your broker, symbol, and risk profile.
Use it as an additional layer of awareness alongside your own strategy and risk management.
