How to trade using Volatility
Here you will find the instructions for
using the Volatility Indicator along with
the Slope Direction Line Indicator Expert Advisor on your
Metatrader 4. Please read the
description of the inputs and decide for
yourself the risk you would like to take for
each trade the expert will open for you.
Requirements
Metatrader 4
Download the files
- Download the indicator files from this
zip file
Destiny_volatility_indicator.zip
- You will find the Destiny Volatility
Indicator and the Slope Direction Line
indicator in this zip file
Installation
After downloading and extracting the
files from above, follow the instructions below.
Step 1
- Save the Destiny Volatility
Indicator and the Slope Direction Line
Indicator to
C:\Program Files\Broker Name\experts\indicators
Step 2
- Close out the Metatrader 4 interface
and reopen it
Setup Instructions
- Double click on Destiny Volatility
Indicator in Navigator Window
- Tick Alerts: This input is set
to 5. This means that when their is
5 ticks of the price in 1 second you will
be alerted by an alert box
- Click OK
- The Indicator will now be attached to
your chart
- Attach the Slope Direction Line
to your chart using the same method
described above
Inputs
- Try adjusting the Tick Alert
input for the Volatility Indicator
according to your brokers speed. Some
brokers are faster then others and you
will see more or less alerts according to
each specific broker so test this for a
few days to see how the indicator is
responding,
Determining
trade direction
Once the
Volatility Indicator will give you and alert
and also show your a red arrow on the chart
showing us the price volatility has picked
up we need to make a logical choice on what
the direction we need to place the trade.
We can do this with the Slope Direction
Indicator. This indicator will give us the
general trade direction because we would
like to open our trade in the direction of
the prevailing trend. If the trend is up
the indicator will show a light-blue line or
if the trend is down it will show a Red
line.
Use
this trade set up at the beginning when you
see the volatility pick up for the first
time in a trading session
Trade example on
GBPJPY
Money Management
Open a 0.1
lot trade per $1000 in your account balance
and try to take as many pips as possible.
This is usually good for 20-100 pips. Look
at possible areas of resistance such as a 00
price level or other basic resistance levels
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