General – getting started
For ships at sea, the lighthouse flashing its constant signals is a warning of one thing – danger ahead. The Quantum Dynamic Volatility indicator is the traders lighthouse. It is warning of possible danger ahead, signalling extreme volatility in the market, and potential hazards for the unwary trader.
The indicator signals this volatility, using average true range. It is constantly scanning the price action for extremes, and when they arrive, are signalled on the chart with a purple arrow, above and below the candle. This is a warning signal to stay out. What often happens following these periods of volatility is that the price action then retraces, and trades within the spread of the candle or bar. The reason for this is easy to understand. The market has moved sharply higher or lower on a news release. Excited forex traders then jump into the move, hoping for some easy money. The market makers then reverse the price action, leaving these trader trapped in weak positions.
This happens repeatedly and is the reason that the we developed the indicator. To signal these volatile bars and candles in realtime, and the associated warning to take care. Generally, once the signal is triggered, you will find the market moving back into the range of the bar or candle, before moving breaking higher or lower in due course. Once the price action has been validated by a clear move away, then it is safe to consider taking a position in the market once again.
The Quantum Dynamic Volatility indicator is sending a clear warning. It’s warning of high risk, and telling you to take care. The indicator paints two arrows, one above and one below the candle or bar.
The Quantum Dynamic Volatility indicator works in all timeframes.
Installation
Open your MT4 platform and in the top level navigation:
- Left click >View
This will open the following window:
- Left click > Navigator
This will open the following window:
- Left click > + icon alongside Custom Indicators
This will open the following window:
- Left click and HOLD – drag the QuantumDynamicVolatility indicator to a chart, and RELEASE
This will then display the following window. This is where you can configure all the various user settings for your Dynamic Volatility indicator. To move from one tab to another simply left click on the grey tab to select the appropriate window.
Common Tab
The Common tab displays two boxes. Both of these should be checked as shown. This ensures that you have enabled the DLL imports as explained in the installation instructions.
Inputs Tab
There is one value you can change with this indicator, and that’s the offset variable.
Offset
The offset function allows you to control where the arrows appears in relation to the top or bottom of the candle or bar. The default value is 30.0. A higher number will move the arrow further away from the candle or bar, whilst a lower number will move it closer. The Value can be changed as follows:
- Double left click alongside the offset in the Value field
- The Value field will change to white – enter a number such as 20.0 to move them closer, or 40.00 for further away
Colors Tab
The default colors and settings are defined by field # 0, and 1. #0 is for the arrow above, and #1 is for the arrow below. The colors can be changed as follows:
- Double left click alongside the arrow you wish to change in the Color field
- Left click on the drop down arrow and a color menu will appear
- Select your preferred color which will then appear as your selection
The size of the arrows above and below can also be changed. The default is size 1 in the Width field, (the smallest) but the arrows can be made larger as follows:
- Double left click alongside the arrow you wish to change in the Width field
- Left click on the drop down arrow and a menu will appear with widths from 1 to 5
- Select your preferred size (1 is the smallest, 5 the largest) which will then increase or decrease the size of the arrow accordingly. You can set the arrows to different values if you wish
Levels Tab
There are no user inputs for the indicator.
Visualization Tab
These are the default settings for MT4. There are no user inputs for the indicator.
When you are happy with all your changes…
- Left click the OK button at the bottom of the window, and your QuantumDynamicVolatility indicator will be applied to your chart
At this point your Dynamic Volatility indicator will look something like this:
Finally, to remove the indicator from your chart:
- Right click on the chart and the following pop up window will appear:
- Left click on Indicators List from the above menu and the following menu will appear:
- Left click the indicator, and then left click the Delete button on the right
