Are you a forex trader looking to include volatility quality in your trading strategy? If so, this Metatrader indicator will best serve your requirements. The 4 Time frame VQ Zeroline Nmc Indicator changes colors depending on whether the currency pair’s volatility quality is above or below the zeroline.
The trend is bullish if the market volatility quality is above zeroline. Below the zeroline, the direction is bearish. The volatility quality indicator turns greens on a bullish signal. On the other hand, the indicator turns red on a bearish signal.
How to trade successfully using the 4 Time frame VQ Zeroline Nmc MT4 Indicator ?
The above picture shows the trading method to be applied using the indicator.
The lines in the indicator window represent a time frame. If more than 3-time frames show a bullish signal, the trader will place a BUY order. In this case, the three lines will be in green color.
To summarise, if more than three lines/timeframes have volatility quality higher than zeroline. Then the trend is expected to be bullish, and it’s a BUY signal. The opposite is valid for a bearish SELL signal.
Traders can place the stop loss below the previous swing low and take profits are set using a reasonable risk and reward ratio.
Many successful traders tend to follow the markets and ride the volatility. In such cases, the traders can decide to exit the trades upon an opposite color change of the 4 time frame VQ zero line nmc metatrader indicator. Color change in the current chart time frame signals an exit.
Aggressive traders can adjust the alert level below three for more entry signals. On the other hand, conservative traders can increase it to four to have more entries.
For a smoother calculation, traders can increase the period to a higher value than 15. A higher filter value also improves the smoothness of signals.
The indicator provides visually easy steps to trade and is suitable for new and experienced forex traders.
Limitations:
The indicator uses a Linear weighted moving average to calculate the smoothing of the prices. The use of moving average creates a small lag in the signal. The indicator does not provide the trader with a take profit and stop-loss points.
Setting
The following are the indicator’s settings:
TimeFrame1: Current chart time frame.
TimeFrame2: Uses the next higher time frame than Timeframe1.
TimeFrame3: Uses next higher time frame than Timeframe2.
TimeFrame4: Uses next higher time frame than Timeframe3.
PriceSmoothing: Last number of periods used for smoothing.
PriceSmoothingMethod:3 – uses Linear weighted moving average.
Filter: A higher value produces fewer signals.
UniqueID: Name of the indicator
alerts On: Turns the alerts On/Off
alertsLevel: 3 – Alerts if more than 3-time frames are aligned.
alertsMessage: Displays a message on alert.
alertsSound: Plays a sound on alert.
alerts Email: Emails the alert.
LinesWidth: Increases the width of the lines in the indicator window.
LabelsColor: Color of the indicator’s label.
LabelsHorizontalShift: Shifts the indicator label horizontally.
LabelsVerticalShift: Shifts the label vertically.
Conclusion:
The 4 time frame VQ zero line nmc metatrader indicator is one of the best MT4 volatility indicators. It helps the forex trader to identify both the volatility and trend.
