If you’re looking to gauge market volatility effectively, the Notis% V oscillator is a fantastic tool for your MetaTrader 5 setup. This nifty indicator measures volatility by calculating the difference between the intraday high and low prices, giving you a clear view of market dynamics.
So, how do you know when volatility is high or low? It's simple! When the gap between the Plus and Minus lines is substantial, it indicates high volatility. Conversely, a smaller gap suggests lower volatility.
Understanding the Notis Indicator Modes
The Notis indicator operates in two distinct modes:
- Cumulative Mode: In this mode, the indicator functions as a traditional oscillator with a single line. You can also invert the indicator chart if needed.
- Non-Cumulative Mode (Default): This mode displays two lines: Plus and Minus. The difference between these lines highlights the market's volatility level, and their crossing indicates the direction of the trend.
Customizing Your Notis Indicator
You can tweak the Notis indicator to fit your trading style with four input parameters:
- Period: Set your desired calculation period.
- Method: Choose your preferred averaging method.
- Cumulative Mode: Toggle the cumulative mode on or off.
- Inverse in Cumulative Mode: Decide whether to invert the indicator chart while in cumulative mode.
Calculations:
NOTIS[i] = 100*Plus[i] / (Plus[i] + Minus[i])
Where:
Plus = Moving Average(P, Period, Method)
Minus = Moving Average(M, Period, Method)
P[i] = High[i] - Close[i]
M[i] = Close[i] - Low[i]
Fig.1. Default mode
Fig.2. Cumulative mode without inverting
Fig.3. Cumulative mode with inverting
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