This is the Signal To Noise Filter which was first coded by Luis Guilherme Damiani. It's an ideal sideways filter to guide traders on when to stay out of the market and was upgraded by Mladen several years ago with additional options like Deviations Method and various code optimizations.
What does it do?
The purpose of this indicator is to identify market phases that have too small amplitudes. These phases are useless even for systems designed for trading ranges markets.
Conditions for trading
- When the Green line is BELOW the gray line - DON'T take any trades
- When the Green line is ABOVE the gray line, this signals strong volatility and trending markets. Trades into the direction of the trend are permitted
For the Histogram Bars version, please see: Signal To Noise Filter Histogram indicator.