Volatility plays a very important role in trading any instrument. If the market is not volatile, you might have to wait long before your trades give you any profit. On the contrary, if the market is too volatile, you will mostly hit the stop losses.
|Volatility Quality Zero Line Indicator
|Smooth Volatility without false breakouts
Working of Volatility Quality Zero line indicator
In this indicator, a volatility line oscillates between 0 and 1 for a bullish market and 0 to -1 for a bearish market, depending on the market conditions. With 0 being the least volatile level and 1 or -1 being the extremely volatile market.
The volatility line of the indicator is when the market is in a bullish trend and the line move from 0 to upwards. However, in the case of the bearish trend in the market, the line moves below the 0 levels to -1.
Settings of Volatility Quality Zero Line Indicator
In the indicator’s settings, you can change the value of price smoothening and filter out the false breakouts.
Trading strategy for Volatility Quality Zero Line Indicator
As discussed in the first section, the indicator’s volatility line turns green when the market is in bullish conditions. And the volatility line turns red when the market is in bearish conditions. Based on that, you can take the long trades when the line turns red to green and the short trades when the line turns green to red.
The most recent swing highs in the case of shorts position and most recent swing lows in the case of long positions will act as take profits for trading with volatility quality zero line indicator.
In case the swing lows swing highs are too far away from where the indicator gives the signal, then you should avoid taking that trade.
Take Profit Levels
The take profit level for a long position is when the colour of the volatility quality zero line indicator for mt4 changes from green to red, and the take profit level for short trades is when the line’s colour changes from red to green.
Keeping in view the market’s volatility while trading can give you a huge edge over other traders because then you will know the right market conditions to trade with the help of this indicator. Also, I suggest you use this indicator along with the Relative Strength Index indicator for better results.
To download the indicator for free, please click on the button below.Download indicator