This technical indicator plot the current market volatility with trend direction signals. If the curve is above the zero line, market is bullish, if it is below, market is bearish.
It is calculated with recent market range compounded from the OHLC values of Weighted moving average. The pro of this indicator is that it can’t avoid ranging market because of its embedded volatility filter : when you are already in a trend, no inverse signal will be given unless a new reversal volatility is detected. The con is that because of its smoothing over the last 15 periods (default parameter), trend catching maybe a little late to appear on screen.
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Este indicador técnico dibuja la volatilidad del mercado con señales de tendencia. Si la linea esta arriba de la linea de cero , el mercado es alcista, SI esta abajo, es bajista. Es calculado con el rango reciente del mercado , compuesto por medias móviles ponderadas de valores OHLC. Agarrar la tendencia puede ser medio tardío, ya que esta suavizado por los últimos 15 periodos.
What does the filter setting exactly mean? And what are overall good settings for daily en 4H timeframe? Great stuff!