Watch the testing video here:
Synthetic VIX Indicator
Introduction to the Synthetic VIX Indicator
The Synthetic VIX indicator is a forex indicator that measures the increase or decrease of volatility.
The indicator is based on Larry Williams’ TASC articles “Fix the VIX”: Bernard Baruch described the market with these words: “market fluctuates”.
The indicator is displayed in a separate window placed just below the main trading chart.
It fits all kinds of timeframes and currency pairs.
The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences. Let’s take a closer look at these inputs below.
Synthetic VIX period – defines the period for calculating the Synthetic VIX.
VIX indicator was originally calculated for the stock market only: the S&P 500 Index, Dow Jones Industrial Average, and NASDAQ Composite Index. Luckily, the VIX can be duplicated and used for the forex market or any other market – using a simple formula.
How to use the Synthetic VIX:
It is really easy to read VIX signals. High values provided by the indicator mean high volatility. Similarly, low values indicate low volatility. Simple as that.
How to set up the Synthetic VIX indicator in MT5?
Copy and paste the Synthetic VIX.mq5 or Synthetic VIX.ex5 indicator files into the MQL5 folder of the Metatrader 5 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL5 > Indicators (paste here).
Now go to the left side of your MT5 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
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