Click here to Login








Volatility Channels Indicator
by Caleb, 4943 days ago
Share |






The volatility channels indicator is used as a confirmation rule to enter long or short trades. When long rules are triggered, enter long when the price breaks up the upper volatility band and when short rules are triggered, enter short when the price breaks down the lower volatility band. The volatility channels adjust quickly to price movement and therefore the breakout should occur within the next few bars.

Here is a trading system example:
rule1 = cross(close, sma(close, 30));
buy = hhv(rule1, 6) and cross(close, VolatilityChannels(14, 0));

The buy rule gives a signal when the close price crosses above the upper band of the volatility channel and if at the same time the "rule1" was TRUE during the last six trading days.

The volatility channels indicator was created by Larry William, an author and commodity trader from the state of Montana, USA (according to Wikipedia).

The function has two parameters:
Period: The lookback period used to calculate the higher and lowest channel levels
BandType: A value that determines whether to return the upper or the lower band. To get the lower band set this value to one and to get the upper band set this value to zero.

Some other channel trading rules:
Donchian Channels
Standard Error Bands
Keltner Channel

Share This ->
Share |


You have to log in to bookmark this object
What is this?
Additional Information




Type: Trading Indicator

Object ID: 971


Country: All

Market: All

Style: Technical Analysis

Reviews
You must log in first

Join now
and get instant access for free to the trading software, the Sharing server and the Social network website.
Click here


Related objects

Empty

Number of reviews
Click to add a review
Average rate
Click to rate this item
Number of times this object was downloaded
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object

Technical Analysis

Fundamental Analysis


Random Blog Posts

Charting & Scripts - Manage stock charts using the global script

Trading System: Buy Stocks based on their Sharpe Ratio Rank

Creating and managing notes for your stocks

How to Quickly Create Fundamental Scans

Download Trading Data using the Post-Script

Download Trading Data using the Pre-Script

Download Trading Data using the URL-Script

Trading Items: Data Download using .Net Scripts

Show All

Number of reviews
Click to add a review
Average rate
Click to rate this item
Number of times this object was downloaded
Number of rates the current object received
Report an object
if you can't run it for example or if it contains errors
Click to report this object






QuantShare
Product
 QuantShare
Features
Create an account
Affiliate Program 		Support
Contact Us
Trading Forum
How-to Lessons
Manual 		Company
About Us
Privacy
Terms of Use
Copyright © 2024 QuantShare.com
 Social Media
Follow us on Facebook
Twitter Follow us on Twitter
Google+ Follow us on Google+
RSS Trading Items



Trading financial instruments, including foreign exchange on margin, carries a high level of risk and is not suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in financial instruments or foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.