volatilitymatters

Volatility Trend Indicator

The Volatility Trade Indicator signals bullish / bearish trend based on the volatility of the underlying asset.

During bull markets, volatility is typically low and price moves occur slowly and steadily. During bear markets, volatility is typically high and price movement is much more volatile in both directions.

The Volatility Trade Indicator measures the volatility of the underlying asset in relationship to the historic volatility over a specific timespan.

Low volatility regimes are signaled in green with an indicator value of below 0, high volatility regimes are signaled in red with an indicator value above 0.

During low volatility regime you want to look for long entries, during high volatility regimes you want to look for short entries.
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