boytoy wrote: Mon Aug 19, 2024 5:51 pm Confused here the little sign in the indicator says TRADE or DO NOT TRADE. What do I trade?

This indicator will not tell you which direction to enter a trend as it measures price's volatility and movement. Witihin the indicator's subwindow, the text will tell you to:

1. TRADE: which means the conditions are good and the market is trending so trading is permitted.
2. DO NOT TRADE: means the market is ranging so pass on trading for now.

As mentioned above, it will not give signals on the direction of a trend. This is up to you by using other indicators and analysis.

So for example, if I was instructed to take a trade USDCHF with this indicator today I would:

• Have a quick look at the higher timeframe USDCHF charts such as the Weekly and Monthly timeframe:
• I'll see that this pair has been on a downtrend for decades.
• I'm only going to look for "Sell" positions on the lower timeframes.
• I'll have a look at the 4 Hour timeframe and wait for the Volatmeter indicator to signal that there is a "trend" happening.
• If price is moving towards the downside I'll enter a "Sell" position.

Now, the best thing about this indicator is the Histogram version which is made by Mrtools which can be neatly placed into any subwindow or moved to the very bottom of your chart and out of the way.

The Histogram will give you a clear display of a the market condition being either in a Trend or Ranging.

Attached below is a template with both indicators. I've changed the colors in the template to suite the theme but as you can see in this template:

• Aqua Histogram bars mean the market is in a Trend.
• Blue Gray Histogram bars mean the market is Ranging.