Dynamic Volatility Burst

Dynamic Volatility Burst is an analytical technical indicator developed for MetaTrader 5. It measures candle range expansion relative to historical moving average volatility and dispersion parameters, helping traders identify price momentum directly on chart windows.

Operational Concept

The indicator evaluates each bar by comparing its high-low range with a baseline moving average of preceding candle ranges. When current price expansion exceeds the calculated volatility threshold, the indicator displays directional signals based on the closing direction of the bar:

• Bullish Signal: Displayed below the bar when the bar closes higher than its open and satisfies the range expansion criteria.

• Bearish Signal: Displayed above the bar when the bar closes lower than its open and satisfies the range expansion criteria.

An optional structural reference level calculation is included to project swing reference points and proportional distance targets for technical analysis.

Main Features

• Adaptive Range Calculation: The indicator computes average candle height and standard deviation over a defined lookback period to adjust for changing market conditions.

• Candle Body Filter: Verifies that the body-to-range ratio exceeds the configured threshold, filtering candles with long neutral shadows.

• Flexible Bar Evaluation: Provides options to calculate signals on the formation of the current active bar or strictly upon bar completion on the subsequent bar open.

• Interactive Chart Panel: Displays current instrument details, server time, current spread, and configuration parameters in a scalable on-chart interface.

• Alert Notification System: Supports standard terminal pop-up alerts and mobile push notifications when valid signals appear.

Input Parameters

Volatility Engine Settings

• Lookback Period: Number of historical bars used to calculate average candle range and standard deviation.

• Auto Adaptive Multiplier: When enabled, adjusts the deviation sensitivity according to the chart timeframe.

• Manual Multiplier: Multiplier applied to standard deviation when the auto adaptive option is set to false.

• Minimum Body Ratio: The required ratio between candle body and full candle range (from 0.0 to 1.0).

Signal Filters

• Signal Spacing Bars: Minimum number of bars that must elapse between two consecutive signals.

• Use Time Filter: Restricts signal calculations to a defined daily time session.

• Start Hour / Start Minute: Beginning of the active operational window.

• End Hour / End Minute: Conclusion of the active operational window.

Target and Level Settings

• Draw Target Levels: Enables or disables the visual drawing of horizontal reference price levels.

• Swing Bars: Number of previous bars checked to identify the structural swing high or swing low.

• Risk Reward Ratio: Multiplier used to project the secondary price reference line relative to the swing distance.

• Line Length Bars: Number of bars ahead to project the horizontal lines on the chart.

Interface Settings

• Show Panel: Enables or disables the graphical interface on the chart.

• Master Scale: Scale factor for the dashboard panel and text elements to fit different display resolutions.

• Panel Margin Right: Distance between the right edge of the chart and the panel, measured as a percentage of the chart width.

• Panel Margin Top: Distance between the top edge of the chart and the panel, measured as a percentage of the chart height.

Recommendations

The indicator can be applied to any currency pair, commodity, or index available in your terminal. All parameters should be adjusted according to your preferred timeframe and trading style. This analytical tool does not execute automatic trades and is intended to assist manual chart analysis.