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OPEN-SOURCE SCRIPT

Volatility Quality Index w/ Pips Filtering [Loxx]

By loxx
Updated
Volatility Quality Index w/ Pips Filtering [Loxx] is a Volatility Quality Index indicator with various smoothing types and pips filtering

What is the Volatility Quality Index (VQI)?
The idea behind the volatility quality index is to point out the difference between bad and good volatility in order to identify better trade opportunities in the market. This forex indicator works using the True Range algorithm in combination with the open, close, high and low prices.

Included
  • 7 different types of smoothing average
  • Alerts (coming in future update, stay tuned)
  • Signals (coming in future update, stay tuned)
Release Notes
Added:
  • Alerts
  • Signals
  • Bar coloring


Signals are based on:

long = rate of change of last 10 bars is positive
short = rate of change of last 10 bars is negative

you can change the 10 bar period to suit your needs

Stridsman suggested to buy when VQI has increased in the previous 10 bars (use the SMAs ) and sell when it has decreased in the previous 10 bars.
pipspipsfilteringTrend AnalysisVolatilityvolatilityqualityindexVQI

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.

Want to use this script on a chart?

loxx
Public Telegram Group, t.me/algxtrading_public

VIP Membership Info: patreon.com/algxtrading/membership
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Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.