An introduction to the volatility indicator for Tradestation Securities
An introduction to the volatility indicator for Tradestation Securities.
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 trading 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 or bar. 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 traders then jump into the move, hoping for some easy money. The market makers then reverse the price action, leaving these traders 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 breaking higher or lower in due course. Once the price action has been validated by a clear move away and a close above or below, then it is safe to consider taking a position in the market once again.
The Quantum Dynamic Volatility indicator for Tradestation 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 and these appear even before the bat or candle closes telling you instantly of the danger ahead.
Volatility indicator in action on the daily chart for the NQ emini and on the Tradesttaion platform
The volatility indicator in action on currency futures on the Tradestation platform
In this video we show you the volatility indicator in action on currency futures on the Tradestation platform.
The volatility indicator in action on various timeframes for futures on the Tradestation platform
In this video we show you the volatility indicator in action on various timeframes for index futures on the Tradestation platform.
Watch the volatility trigger BEFORE the close of the candle on the Tradestation platform
In this video we who you how the volatility triggers BEFORE the close of the candle on the Tradestation platform.