Trend-based informational signal indicator Volatility Quality Index displays the sections of up/down trends.
It has four adjustable parameters:
- Period – calculation period
- Method – calculation method
- Smoothing – smoothing period
- Filter – filter size
Calculations:
- If VQ > 0
The trend is up – a green signal pointer is placed
- Otherwise
The trend is down – a red signal pointer is placed
where:
- If (Abs(VQnew) < Filter
VQ = PrevVQ
- Otherwise
VQ = VQnew
VQnew = Abs(((Close – C2) / Max + (Close – Open) / (High – Low)) * 0.5) * ((Close – C2 + (Close – Open)) * 0.5)
Max = Maximum(High – Low, Maximum(High – C2, C2 – Low))
Open = MA(Open, Period, Method)
High = MA(High, Period, Method)
Low = MA(Low, Period, Method)
Close = MA(Close, Period, Method)
C2 = Close Smoothing bars ago
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