Trend Following Indicators, Free Forex Indicators (MT4)
Volatility Step Channel Indicator
By Arun Lama
Updated On
Volatility Step Channel Indicator is a trend-following forex trading indicator, used to identify the market trends based on the price volatility. The idea behind the development of this indicator is to create a strategy that follows the market trend and respects the price volatility at the same time. This strategy worked well and intends to supply quality trade signals.
Volatility Step Channel Indicator offers great simplicity in trading since it uses a very simple technique for demonstrating the trade signals. Moreover, it suits all sorts of timeframe charts and can be applied to trade all kinds of forex currency pairs in the market.
Volatility Step Indicator uses a Volatility Step Channel that gives you the scenario of the current market trend. On the other hand, the Base Volatility shows you if the current market movement is supported by the price volatility index or not. For example, if the market is in a bullish mode, the Base Volatility should also be in an uprising trend for the confirmation of going long. Furthermore, you can use Volatility Step Channel for determining the dynamic stop level of the current market trend.
Volatility Step: Buy Conditions
Price breaks above the Volatility Step Channel
Base Volatility is in a rising pattern
Activate the buy entry after the above conditions are met
Set stop loss below the Volatility Step Channel
Exit long/take profit whenever price breaks below the mid-band of Volatility Step Channel
Volatility Step: Sell Conditions
Price breaks below the Volatility Step Channel
Base Volatility is in a falling pattern
Activate the sell entry after the above conditions are met
Set stop loss above the Volatility Step Channel
Exit short/take profit whenever price breaks above the mid-band of Volatility Step Channel
I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.
Risk Warning: Trading in the forex market is very risky. Thus, it is may not be for everyone. A highly leveraged position can work against the trader when the trade does not work as expected. Trading in the forex market can cause to lose a significant portion of the capital or all of the capital. It is crucial to learn about the trading and gain enough experience in the demo account before trading with real money. The trading strategies published on this website do not guarantee profit as the market is dynamic and unpredictable. The past performance of a strategy is not the indicative of future performance. Trend Following System will not accept any kind of liability or damage caused by trading the strategies published on this website.
