The volatility quality zero line forex indicator for mt4 is an improved form of a volatility forex indicator for mt4. It gives a clear signal and helps forex traders avoid false breakouts in the market.
Volatility plays a significant role in trading any instrument. If the forex market is relatively stable, you might have to wait long before your open trades give you any good profit. On the contrary, if the forex market is too volatile, you will mainly hit the stop losses.
Working of Forex Volatility Quality Zero line indicator
In this forex indicator, a volatility line oscillates between 1 and 0 for a bullish forex market and -1 to 0 for a bearish market, depending on the forex market conditions. With 0 being the very least volatile level and 1 or -1 being the very volatile market.
The volatility line of the forex indicator is when the forex market is in a bullish forex trend and the line move from 0 to upwards. However, in the case of the bearish market trend in the forex market, the line moves below the 0 levels to -1.
Settings of Forex Volatility Quality Zero Line Indicator
In the forex indicator’s settings, you can change the value of chart price smoothening and filter out the false chart breakouts.
Trading strategy for Volatility Quality Zero Line Forex Indicator
As discussed in the first section, the forex 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 market trades when the line turns red color to green and the short trades when the line turns green to red.
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The most recent chart swing highs in the case of shorts market position and most recent chart swing lows in the case of long open positions will act as take profits(TP) for trading with volatility quality zero line forex indicator.
In case the swing lows chart swing highs are too far away from where the forex indicator gives the chart signal, then you should avoid taking that trade.
Take Profit Levels
The take profit(TP) level for a long chart position is when the color of the volatility quality zero line forex indicator for mt4 changes from green to red. The take-profit level for short trades is when the line’s color changes from red to green.
Keeping in view the forex market’s volatility while trading can give you a considerable edge over other forex traders because then you will know the right market conditions to trade with the help of this forex indicator. Also, I suggest you use this indicator along with the Relative Strength Index indicator for better results.