Volatility Indicator

Volatility Indicator

Forex BUY SELL signals from the best non-repaint MT4 volatility indicator. Free MT4 indicator download. Measure market volatility.

The Volatility Indicator for MT4 is the best forex technical indicator for intraday traders and trend forex traders. It helps traders to measure how volatile the forex market is.

Forex market volatility is directly proportional to price changes. When the market prices are changing rapidly, the market volatility is high. On the other hand, when the market prices are changing slowly, the market volatility is low.

The indicator measures the forex market volatility by comparing the exponential moving average (EMA) with volume. And then displaying a colored histogram to show the measure of volatility. The color of the histogram bars changes depending on the market volatility.

Gray bars show low market volatility and royal-blue bars show high market volatility. The length of the bars shows whether the volatility is increasing or dropping.

Traders can then interpret and use the information provided by the histogram bars to identify whether there is enough market volatility to trade or not.

Volatility Indicator BUY/SELL signals

The above EURUSD H1 chart shows a volatility indicator showing the trend in the EURUSD market volatility. With a keen eye, it is possible to notice that when the royal blue bars that show high volatility are plotted, there are considerable market movements. And the market can be said to be trending. On the other hand, when gray bars that show low volatility are plotted, there is not much market movement. And the market is said to be in consolidation.

Most traders, especially intraday traders and forex trend traders, like opening market orders when the market volatility is high. Because that is when the market registers significant price movements that would produce a good profit if a trader’s market speculation is correct.

The volatility indicator for MT4, however, does not provide signals of which trade to place. It just provides information about how volatile a market is to help traders identify if the market is favorable for placing trades or not.

As a result, the indicator should be used in conjunction with other indicators like trend indicators, channel indicators, and fractal indicators among others. It helps to identify the market trend and the best-suited trade to open depending on the traders’ trading strategy.

Once a trader identifies a trading opportunity to place a certain trade (either a buy or a sell) according to his or her trading strategy, the trader should wait. He is waiting for royal blue bars to start forming in the histogram of the volatility indicator for MT4 to place their respective trades.

The trader should exit/close the trade/position when the volatility starts to decrease, which is indicated by the decreasing length of the bars in the histogram. This is because

Conclusion
The Volatility Indicator for MT4 provides forex traders with valuable information. It enables them to find out if the market conditions are favorable for placing trades or not. Also enables traders to detect the market condition. So that they can be able to act accordingly to the trading signals generated by their trading strategies.