Forex Damiani Volatmeter Indicator

Forex Damiani Volatmeter is a technical indicator for Metatrader 4. This trading tool is designed to detect periods of higher and lower volatility. It helps to determine when the market moves from a state of a sideways range to a trending one. The indicator helps to capture and filter out market noises. This can be especially useful for distinguishing a real nascent trend from normal market noise.

You can download this indicator from the link at the end of this post.

Indicator signals

Damiani Volatmeter has three lines: green, gray, and red.

Determining the volatility and the possible start of a trend with this indicator is quite simple. When the green and gray lines of Damiani diverge and move away from each other - this is a signal that volatility is increasing At a time when the lines are close to each other and intersect - this signals a calm market.

Most of the time, the green and red lines move along the same path. The red line is below the green and is usually not visible. Those moments of time when the red line begins to be visualized in the indicator window and moves along its path indicate market noise.