Stochastic Volatility - On Charts - MetaTrader 5 Script | Forex Indicators Download - MT4/MT5 Resources

This indicator is based on the original work and ideas of Francesco G. Cavasino (in his published article "Stochastic Volatility").

Some usage instructions:

This is not a directional indicator . This means that even though it is random, it does not show the direction of the market, but the direction - amount - size of the fluctuations. Seemingly reasonable assumptions suffice, the indicator is then developed at a time when volatility is extremely low, which is a good time to enter the market as a change in volatility is imminent. These times are marked with red lines in the indicator subwindow and red candles on the chart. For entry direction, you should use some other trend showing indicator.

A version has been released (the "regular" subwindow version, it is released here: Stochastic Volatility ) but this indicator does not work with this indicator. The reason why this is not the case is because certain operations (such as calculating long-term simple moving average and standard deviation on modified data of non-standard data are very slow, but not very slow if coded as pure MQL). Therefore, the indicator is broken down into functional parts, each functional part uses them to do the job whenever the built-in indicator is available, and when they are combined, they do the complete job.

Attached are all the mq5 files, but for simplicity (because some people will have problems compiling this file), all the ex5 files (in the attached zip file) will be attached in another article later in this article, so that people don't need to know all the steps of how to do a multi-file compilation and need to perform certain steps in the exact order.

Each additional indicator works according to its flow, but the two "final" indicators are the "On Chart" indicator and the "2" indicator. As its name suggests, the "Basic" indicator is used for base calculations. Here's what the "on chart" version looks like (it also automatically loads "2" to display it on the same chart):

This is "2" alone:

Versions on the chart help you identify exactly which bars are problematic and are "candidate" bars for changes in trend or market conditions (as shown in the "big picture" example below).

Attachment download

📎 stochastic_volatility_on-chart.mq5 (10.1 KB)

📎 stochastic_volatility_2.mq5 (11.69 KB)

📎 stochastic_volatility_base_2.mq5 (17.03 KB)

📎 stochastic_volatility_base.mq5 (4.05 KB)

Source: MQL5 #22665