Volatility Support & Resistance
The Volatility Support & Resistance Indicator is one of the most advanced and powerful tools you can use.
This Indicator has many uses and is adaptive within the market.
The Volatility S&R has a small similarity to the EQ Cloud. It will change colors depending on the Trend of the Market.
When the Vol. S&R is Green, we are most likely in an overall Bullish Trend and can expect the Market to push more Bullish.
- With a Green Volatility S&R line our "BUY" or "Long" signals are stronger than our "Sell" signals. We can see that the "Buy" runs move more generally. We can see this in the screenshot below.
Green Volatility S&R, Strong "Buy" Signals than "Sell" movements, (Trend is your Friend)
When the Vol. S&R is Red, we are most likely in an overall Bearish Trend and can expect the market to move more Bearish.
- With a Red Volatility S&R line our "Sell" or "Short" Signals are stronger than our "Buy" Signals. We can see that the "Sell" Runs move more generally. We can see an example of this in the screenshot below!
Red Volatility S&R, Stronger "Sell" Signals than "BUY" signals.
We can also use this tool as a Support and Resistance. It is an adaptive Support and Resistance meaning it follows the price of the market giving you one of the closest Support and Resistance values to the current price. We can see in the examples below when the market used the line as a S/R.
Green Volatility S/R line showing a bullish trend. Market used the Line asa support line on the way up!
Red Volatility S/R line showing a Bearish trend. Market tested and used line as a Resistance and continued down
Pay close attention to the direction of the Volatility line.
- If the line is Green then the market is overall bullish.
- If the line is Green and is pointed up that is a sign the market is in a strong overall bullish trend up.
- If the line is Green and is Flat that can be a strong sign the market is pulling back, reversing or moving sideways. However, even though the market is most likely experiencing a pull back or sideways movement the line is still green indicating overall there is still a bullish trend.... until the market/candles break below the line.
- If the line is Red then the market is overall bearish.
- If the line is red and is pointed down, this indicates the market is in a strong overall bearish trend down.
- If the line is Red and is Flat that can be a strong sign the market is also pulling back, reversing or moving sideways. However, even though the market is most likely experiencing a pull back or sideways movement the line is still red indicating there still is an overall bearish trend.... until the market breaks above the line!
Last modified 1yr ago