Watch the testing video here:
The Average Size Bar Indicator
The Average Size Bar Indicator For MT4 can easily be used by the trader to spot when there is an increase or a decrease in the volatility of the price in any timeframe of the trader's currency pairs.
From the example above, notice how the signal line of the Average Size Bar Indicator For MT4 tends to move up whenever there is a strong price move on the chart. Traders can use this to identify the start of new trends on their trading charts.
The Average Size Bar Indicator For MT4 measures the volatility on a chart by measuring the average movement across a recent number of closed candles or bars on the trader's charts.
The indicator then plots this derived value in the form of a Moving Average on the trader's chart to enable the trader to visually identify when there is an increase or decrease in the price momentum.
This can be very useful to the trader especially if his or her strategy is a trend-following strategy that entails that the market has to be trending in order for the trader to make some profits.
Even traders who look to trade the periods of low volatility in the market like Mean Reversion traders could also use the indicator to identify and avoid high volatility periods in the market.
A trend-following trader can also use the volatility information derived from the Average Size Bar Indicator For MT4 for exiting trades. If the trader is already in a profitable trade, he or she can watch for when the volatility drops just before the change in direction and exit his or her positions at this time.
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