Convergence Divergence Range Volatility - MetaTrader 4 Script | Forex Indicator Download - MT4/MT5 Resources

The CDVRolatility indicator can be used as a guide for setting S/L, T/P and T/S. Within the selected time window, the indicator shows the largest uptrend (convergence signal) and the largest downtrend (divergence signal) for net positive price gains. For net negative price changes, the largest decline becomes a convergence signal and the largest increase becomes a divergence signal.

Trading performance improves as the convergence and divergence curves separate. Divergence signals provide a lower limit for stop loss (in pips). Convergence signals provide guidance on profit levels and overall volatility range.

Users can select the window size, thresholds (points) for price changes (opening and closing across windows), and the period of the average indicator.

Input parameters:

Figure 1. Converging (thick line) and diverging (thin line) signals

suggestion:

The price threshold should be set so that it is typically met within the selected window size within the selected time frame. Suitable time frames are H1, H4 and D1. For the H4 timeframe, a window size of 12 bars, a SMA period of 20, and a Delta threshold of 20 or less works well.

Attachment download

📎 cdrvolatility.mq4 (6.23 KB)

Source: MQL5 #13077