DaVinci Indicator Truly Volatility is designed to determine volatility and calculate the average price movement in the hourly or daily period. The data is displayed in a separate window in the form of a histogram and text values.
We all know that the range of price movement can vary greatly for different currency pairs. If you calculate your trading goals at points, then Stop-Loss at 20 points for EURUSD, GBPJPY, or USDRUR is not the same. Each currency is subject to changes in the country, political and economic fact, and the movement of quotations simply can not be similar. With this tool, it is convenient to calculate the average price movement, say, from 23 to 2 hours, if you are trading in the Asian session on a specific pair for the last 20 weeks or from 20 to 23, if you trade only in the evenings manually. You can find out the average range at least for the last 7 Fridays and be able to predict the future force of movement on the received data and correctly set the goals of your orders.
You can use the indicator as an alternative to the same ATR, but with the possibility of more detailed analysis. To work you need to switch to H1, or D1 period.
Also, when the Show Candle Size is enabled, the indicator can show the length of each candle at points using text tags.
Installed on the H1 timeframe, the indicator shows the average price movement for each hour (from 0 to 23), focusing on historical data from the previous X weeks. On the D1 Timeframe, it will show the average movement for each particular day of the working week.
Also, the indicator can build a line of general volatility, calculated as the total length of N candles, divided by the number of candles.
|Calculated over past weeks||Period of historical data to calculate volatility indicated in weeks.|
|Candle type||Type of candle length calculation: Body – takes into account the prices of Open and Close, Whole – takes into account the prices of High and Low.|
|Display Digits||4 or 5-digit display of points values on the indicator and text labels.|
|Show Candle Size||Display text notes about the size of candles on the graph.|
|Show Text Information||Displaying the dashboard on the graph.|
|Show Hours and Day of Week||Display text with the name of the day of the week for D1, or every hour for H1 on the histogram.|
|Show Average Volitility||Displaying the medium volatility line|