Volatility Predictor

Volatility Predictor

Indicator predicts future volatility with probability close to 2/3. There are two modes of operation:

  1. In the first mode, the chart displays the values ​​of probable future prices.
  2. In the second mode, the graph displays the calculated values ​​indicating levels or for which one can expect their breakdown, with probability close to 2/3, indicating a range, for which the same probability expected conservation rates therein.

The basis of the prediction – the dependence of the future value of the ratio of the historical volatility values ​​of the last and the penultimate periods. If current volatility decreased compared with previous, the the future volatility will, with a probability of about 66%, greater current, as well, with the probability of about 66% less previous.

For the situation when current volatility increased, valid reverse regularity. Thus, comparing the values ​​of the historical volatility, it becomes possible to predict with a high probability of future volatility, thus used in practice, so-called long-observed property cyclical volatility, which, despite the sufficient popularity, still has not been implemented in the form of predicting Indicators included in the standart set of POS terminals.

Anticipating volatility, you can determine a good point for setting stop-loss and take profit, as well as to filter the signals input to the position. Besides the possibility of trading directly, volatility using options.

indicator settings

  • period – the period for calculating volatility.
  • indicator_mode – switching modes of operation of the indicator.

Volatility Predictor

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