Volatility means oportunity. No price move means no profit (and no loss).
The indicator shows horizontal bars representing candle bodies with chosen index (TrackedCandleIndex).
The size of the candle body is shown in relative size to its average body (CandleAverageNumber).
The value of the realative size is shown next to the bar.
On picture above CADCHF shows big volatility. Value 221% means that actual body is more than 2 times bigger than the CADCHF avreage body on actual time frame. On the contrary actual body size of pair GBPAUD is small. Body size is only 5% of its average body menas very low actual volatility on this pair.1
In indicator window you can accommodate (change) following variables:
- ReferenceBody … defines how long the bodies bars will be,
- TrackedCandleIndex … zero (0) means actual candle, one (1) means candle by one step older and so on,
- HorizontalStartPosition … defines how far from the right the indicator will be placed.
You can place more than one instance of the indicator in one chart and get broader picture of price map.
In case you place other instance of the indicator for other candle index you have to accommodate variable HorizontalStartPosition to avoid collision.
- Actual voliatility tracking: Low volatility can mean a contraction phase, than a bigger volatilty can come. Conversely if an extremely big candle preceded than it is less likely similarly big candle will follow.
- Correlation: On the picture above you can see strong move of all 3 American indices one timframe back proving high correlation between these indices. Pairs with EUR on the contrary show very low volatility on actual time frame, pairs with CHF show strong move .