New Free Indicator for cTrader – Wavelet Based Volatility Filter

I’ve just released a new indicator for cTrader called the Wavelet-Based Volatility Filter. It’s designed to give a cleaner and more useful view of market volatility than standard tools like ATR or plain standard deviation.
How it works:

1. Calculates volatility from log returns.
2. Applies a Haar wavelet filter to strip out short-term noise.
3. Compares the smoothed volatility to a moving baseline (EMA, SMA, or Median).
4. Marks quiet market phases with a green histogram that appears only when specific conditions are met.

On the chart, you’ll see:

1. Orange line – raw volatility.
2. Blue line – wavelet-smoothed volatility.
3. Green bars – appear only when the market is unusually quiet.

Why it matters:
Quiet markets often lead to strong breakouts. This tool helps you prepare by flagging suppressed volatility regimes, so you can plan entries or manage risk more effectively.
Key Features:

1. Two volatility views (raw vs. filtered).
2. Automatic scaling prevents lines from becoming flat.
3. Flexible thresholds with hard or soft cut-offs.
4. Clear visuals with no extra chart clutter.

You can download it for free here:
Wavelet-Based Volatility Filter – ClickAlgo

I would be interested in hearing how others combine volatility filters like this with breakout or trend strategies.