Requested file, added pack of average for type of smoothing....
What is the Cercos Chaos vs Movement indicator?
Manuel Perez explains that most volume/volatility indicators take into account price volatility to determine if price is moving or not. However, they usually fail to get you out of choppy price action situations:
- This indicator was intended to filter those flat periods while also getting you into the beginning of most trends.
- This indicator works better with lower periods (5-10).
How is this indicator used?
- If the green line is above the red line, volatility is in full force and trading is allowed.
- If it's below, there is a range or choppy price action. Stay out.
Remember, this is a volatility indicator so it should not be used solely for entries. You can compliment it with other entry signal indicators.
