Volatility is standard deviation of all price changes during measured time. Because forex is high liquidity market, exact computation for every new tick on H1+ timeframe would cost a lot of time. Forex volatility indicator computes volatility as an approximation from M1 bars. This method is not exact, but 99% accurate and quick.
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Forex volatility indicator is designed as a Metatrader 4 histogram plugin. It’s value is shown in separate histogram window, it operates in 2 modes:
Software is distributed under GNU GENERAL PUBLIC LICENSE version 3 (GNU GPLv3) license. Read more about license
First step Download “Forex volatility indicator”
Second step Put downloaded file to your experts/indicators directory
Third step In Metatrader 4 add an custom indicator named AproxVolatility
Question #1 (Martin Ramirez, 13.06.2010 14:09)
I use AproxVolatility indicator on EURUSD H4, and I see values just for a few bars. Could you please tell me why this occurs? Why the indicator doesn't work on M5?
Answer (Pavel Sedek, 14.06.2010 12:43)
Hi Martin,
AproxVolatility indicator is an approximation of volatility from M1 bars. You probably don't have M1 data on those bars, where volatility indicator is zero.
Reason why the indicator doesn't work on M5 timeframe is almost the same - approximation from five M1 bars is not so accurate.
Question #2 (chris, 22.12.2010 13:55)
Hello
The Indicator is only working on 1h charts, is that on purpose?
Thank you,
Best
Chris
Answer (Pavel Sedek, 22.12.2010 14:41)
Hello Chris,
indicator is working on M15 and bigger timeframes. If you don't see bars in the indicator window, you maybe don't have M1 data. Try switching to M1, sroll a few days back and then switch back to higher timeframe, this should help.
Kind regards,
Pavel
Question #3 (c, 18.02.2011 11:34)
what's the diff with ATR indicator at mt4 ?
Answer (Pavel Sedek, 18.02.2011 17:48)
ATR with period 1 is calculated this way:
TempBuffer[i]=MathMax(High[i],Close[i+1])-MathMin(Low[i],Close[i+1]);
Greater periods are just MA on this array.
Volatility indicator is based on standard deviation - it analyzes 1-minute bars and it's computation is more complex. Check the source code.
Question #4 (Keith Mitchell, 19.10.2011 05:38)
Which setting do you like best? Setting only Absolute to true, setting only Relative to true, or setting both to true? Also, how does this differ from the volume graph available on MT4?
Answer (Pavel Sedek, 24.10.2011 21:37)
Hello Keith,
best settings depends on purpose, for stoploss size is beeter absolute, but relative better fits to probability automation.
Volume chart available in MT4 on forex just tells you, how many times did the price changed during that bar. Volatility indicator is using standard deviation, which is just one simple statistical formula...
Question #5 (starsuvarna, 06.02.2012 07:33)
Downloaded the indi, doesnt work though, i put it on my charts
Answer (Pavel Sedek, 06.02.2012 16:01)
Do you correct have M1 data? Volatility is counted from M1 timeframe, so if you don't have M1 bars the indicator doesn't work.
