This tool displays relative volatility and directional trend. Excellent way to pickup diversions and reversals. Length can be lowered to 11 or 13 in settings to show price range. Can be used to identify patterns such as parallel channels and likely direction of price action as pictured below.
Is there a version of this Volatility Oscillator for MT4? Thank you
veryfid
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@sjbarber373373, I am not sure. It is a very basic script. It just plots close - open
shonwd
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Is it normal for regular bullish/short plots to lag so much? Like they dont show on close but previous candles. They repaint so much :/
veryfid
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@shonwd, Hi, yes this uses a standard diversion detector. The problem is that they use the inbuilt pivot function which has a delay to pick up the pivot. I dont use these signals and only added them as an example of the signals that can be found. In my opinion automatic scripts for things like trendlines and diversions are not accurate enough to use. There are many strategies with this indicator like breakout trading. In an uptrend connect 2 pivot tops with a downward trendline. Wait for osc to cross then enter on first pivot above the line. Do the opposite in down trends. Connect 2 pivot lows with an upward trend line.
WHALES_CRYPTO
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Nice
sanjibacharyee
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Ok
gadaevshon
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is there a way I can change code so it doesn't repaint after 5 and shows the signals on the current candle
gary7766
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ive been using the peaks outside of the upper and lower band as possible entry candles on a 1m strategy, i use in conjunction with a 150ema and 150hma band, going to have a look at divergances now. is the upper and lower line showing an average? i use it with the length set to 60 on the 1m. generally i dont trade the 1m when the upper lower band is below 6 but get ready for a big move incoming as the band gets narrower, im making this up and only doing what seems to work, would appreciate someone with a better understanding explaining why what im doing is working or seems to so far in my backtesting, i also use squeeze momentum, stoch and psar, trying to get an indicator based setup that leaves no doubt when and where to enter and exit with close to 60% winrate at 1 to 2 rr, starting with 2k, compounding profits and limit entries only, market orders you need something like a 5% better winrate, maybe more
veryfid
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hi @gary7766, What you are actually doing is trading parallel channels. Price action follows a set of laws and the most important fundamental is parallel channels. Price action must flow within a channel. When channels break they will either double or halve. In an up trending channel longs from the bottom of the channel are the strongest trades. In a down trending channel shorts from the top of the channels are the strongest trades. When channels break they will either pump or dump. You can stack a channel to get a realistic price target. These moves are actually continuation breakouts and are the best/safest moves that the charts offer. Every move on the charts is setup using parallel channels, including breakouts. You are either trading moves within the channel or moves when it breaks the channel. It's really that simple. I will write a detailed article on parallel channels one day because I have noticed that there is not much real information about it available to the public. Here is an example screenshot of trading an up trending channel: Here is an example of how price action flows within channels: Here is a link to an article I wrote on chart mechanics:
Happy trading!
gary7766
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@veryfid, wow, thank you, ive just came back here because i felt i needed to understand more about this indicator, only to find me asking you this, i totaly forgot id posted that, feel a bit stupid, going to have a look through your reply, really appreciate it