Damiani Volatmeter is a technical indicator for Metatrader 4. This trading tool is designed to detect periods of higher and lower volatility. It helps to determine when the market moves from a state of a sideways range to a trending one. The indicator helps to capture and filter out market noises. This can be especially useful for distinguishing a real nascent trend from normal market noise.
You can download this indicator from the link at the end of this post.
The Damiani Volatmeter has three parameters: Viscosity by default equal to 7, Sedimentation equal to 50, and Threshold level at 1.1. You can adjust these values for the characteristic for filtering out the market noise of the indicator according to your strategy.
Damiani Volatmeter has three lines: green, gray, and red.
Determining the volatility and the possible start of a trend with this indicator is quite simple. When the green and gray lines of Damiani diverge and move away from each other - this is a signal that volatility is increasing At a time when the lines are close to each other and intersect - this signals a calm market.
Most of the time, the green and red lines move along the same path. The red line is below the green and is usually not visible. Those moments of time when the red line begins to be visualized in the indicator window and moves along its path indicate market noise.
This indicator is especially convenient to use when building intraday trading strategies. It will help with a higher probability to determine the correct price movement. Use it as part of your trading system.
Download the Damiani Volatmeter MT4 Indicator from the button below
Tip: Can’t open the downloaded archive file (ZIP or RAR)?
Do you need help with installing this indicator into MT4 for Windows or Mac OS? Our guide HERE will help you.