Trend-based informational signal indicator Volatility Quality Index displays the sections of up/down trends.
It has four adjustable parameters:
- Period – calculation period
- Method – calculation method
- Smoothing – smoothing period
- Filter – filter size
Calculations:
If VQ > 0
The trend is up - a green signal pointer is placed
Otherwise
The trend is down - a red signal pointer is placed
where:
If (Abs(VQnew) < Filter
VQ = PrevVQ
Otherwise
VQ = VQnew
VQnew = Abs(((Close - C2) / Max + (Close - Open) / (High - Low)) * 0.5) * ((Close - C2 + (Close - Open)) * 0.5)
Max = Maximum(High - Low, Maximum(High - C2, C2 - Low))
Open = MA(Open, Period, Method)
High = MA(High, Period, Method)
Low = MA(Low, Period, Method)
Close = MA(Close, Period, Method)
C2 = Close Smoothing bars ago


