Volatility Ratio Histogram MTF

Volatility Ratio Histogram MTF

There is always a need to measure if the market is "quiet" or it is volatile.

One of the possible way is to use standard deviations, but the issue is simple :

We do not have some levels that could help us find out if the market is in a state of lower or higher volatility.

This indicator is attempting to do that :

•          values above level 0 are indicating state of higher volatility (=GREEN buffer)

•          values below level 0 are indicating state of lower volatility (=RED buffer)

Usage :

This is not a directional indicator. It should be used for volatility detection, it does not provide trend direction and traders do not have to determine the direction of the trade - for that you have to use some other indicator and then check if the market volatility conditions are those that you expect

Many forex indicators would give a lot of false signals in the absence of at least an average level of volatility.
As a result, many forex traders include volatility-based indicators in their technical analysis to determine the presence or absence of volatility.
The Volatility Ratio Indicator detects the presence or absence of volatility and indicates it with a color change.
Volatility based indicators form the basis of many types of technical trading strategies.