The Volatility Ratio indicator for Metatrader 5 creates buy and sell trade entries based on market volatility.
The indicator is displayed as a floating channel in the bottom chart of the trading platform.
It’s recommended to utilize this indicator in agreement with the overall trend.
How to spot fast market trends with the Volatility Ratio indicator?
- A green colored line indicates a bullish trend.
- A red colored line indicates a bearish trend.
- A gray colored line indicates sideways price action.
The indicator works for any trading instrument (Forex, Stocks, Indices, Metals, etc.) that can be loaded into the Metatrader 5 platform.
The following indicator inputs and parameters can be modified: volatility period, price, floating levels period, floating levels up %, floating levels down %, color changing mode.
First, familiarize yourself with this technical indicator and test it on a demo account.
It supports all time frames and Forex pairs.
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Volatility ratio (fl).mq5 Indicator (MT5)
Chart Example
The following chart shows what the Volatility Ratio indicator looks like when applied to the MT5 chart.
How To Buy And Sell Forex Pairs With The Volatility Ratio Forex Indicator?
Find a simple trading example below:
Buy Signal
- A buy signal is given when the Volatility Ratio indicator is colored green and the overall trend is upward.
- Open a long transaction and set your stop loss below immediate support.
- Close the buy trade for 8-20 pips profit, or use your own favorite take profit method.
Sell Signal
- A sell signal is given when the Volatility Ratio indicator is colored red and the overall trend is downward.
- Open a short transaction and set your stop loss above immediate resistance.
- Close the sell trade for 8-20 pips profit, or use your own favorite take profit method.
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Volatility ratio (fl).mq5 Indicator (MT5)
Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the Volatility ratio (fl).mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
How Do I Edit This Indicator?
- Click in the open chart with your right mouse button
- In the dropdown menu, click on Indicator List
- Select the indicator and click on properties
- Now you can edit the inputs, colors, levels, scale and visualization
- Finally click the OK button to save the new configuration