Happy to find your thread here again.
Looks interesting and promising, I didn't have time to check everything out yet (my broker is using MT4), but I somehow trust you, man, and I am happy that you are posting.
It never hurts to try out something new and see if it suites your style of trading.
Mudd, i have contacted Newdigital from Forex Tsd forum and he said that if i give him all rules detailed problably he will got some friend like Igorad or other to code a EA for Metatrader. Maybe the indicator used is a problem but he said that is possible to make using another indicator. Igorad made a lot of indicators for Metatrader.
it is possible to post the rules/logic to help to creat a EA? or if you prefer send me in private o enter in contact with Newdigital at Forex Tsd.
but i think post here is better so others can try do make a EA for Metatrader.
The calculation uses a 21-period weighted average of the true range, giving higher weight to the true range of the most recent bar. The final value is then multiplied by 3.
The volatility indicator is used as a stop-and-reverse method. Let's say the market has been rising, then the volatility indicator is calculated each day and subtracted from the highest close during the rising market. The highest close is always used, even if there has been a series of lower closes since the highest close. If the market closes below the volatility indicator, then for the next day, the current reading of the volatility indicator is added to the lowest close. This step is followed each day until the market closes above the trailing volatility indicator. We now have a definition of the trend. An upward trend exists as long as the volatility indicator is below the market and a downtrend is in force if the volatility indicator is above the market."
And from another site:
"VOLATILITY INDICATOR
Editor,
The September 1998 article “Trading The Trend” by Andrew Abraham, in which he presented a volatility indicator, doesn’t provide the information necessary for the educated layman who is interested in technical analysis. In my opinion, it should have provided more detail on some areas.
I understand the calculation of a 21- period weighted average of the true range, but why is the final value multiplied by 3? Is the volatility indicator in a rising market calculated by subtracting the 21-period weighted average of the true range from the highest close in the same 21-period?
Then when the market closes below the volatility indicator, is the volatility indicator calculated by adding the next day’s value of the 21-period weighted average of the true range to the lowest close in the 21 periods? I hope you can clarify this for me.
TONY RAMSELAAR, via E-mail
Weert, The Netherlands
The volatility indicator discussed by Abraham in the article was originally introduced by J. Welles Wilder in New Concepts In Technical Trading, published by Trend Research in 1978, available from the Delta Society (336 698- 0500). Wilder explains that the constant used in the volatility system can range from 2.80 to 3.10 and was found by testing. The volatility indicator is a trailing stop-and-reverse approach. The volatility indicator is the average true range multiplied by the constant and subtracted from the highest close for long positions. Thus, if you are long, you should go short if the market closes below the volatility indicator. While you are short, the volatility indicator is added to the lowest close, and you go long if the market closes above the volatility indicator.
I hope this helps to fill in the gaps for you.—Editor"
Please let me know as soon as you can if any of you are successful or need to ask questions. I'd be thrilled to have an EA for this on MT4!
