Synthetic Volatility Index Indicator Download for MetaTrader 5 - Free - [TFlab] - MT4/MT5 Resource

The Composite Volatility Index (SVI) indicator is one of the MetaTrader 5 indicators used for measuring market volatility .

This indicator does not provide direct buy or sell signals , but rather represents market volatility conditions .

When the VIX value falls below 1 , the probability of a price increase increases. Conversely, if the VIX breaks above 0 and continues to rise , price tends to decline .

Indicator specification table

The table below summarizes the main features of the technical Synthetic VIX Oscillator.

Indicators at a glance

The composite VIX indicator first determines the highest closing price within a 22-candle period , and then subtracts the lowest price for the same period. The result is then divided by the highest closing price of the same 22-period and multiplied by 100 to adjust the ratio.

Indicators are in an upward trend

In the 5 minute time frame for the USD/JPY currency pair , price is in a narrow range before gathering liquidity

and moving upward . In the oscillator window , the blue line is trending downward , signaling bullish price action .

Indicators are in a downward trend

On the 15-minute chart of the AUD/CHF currency pair , the price fluctuates within a range . With each price decline , the oscillator line moves upward .

Traders use this pattern to identify breakout opportunities and determine entry points in the market.

Indicator Settings

The image below shows the setup section of the composite VIX indicator :

• Period: defines the calculation period of candles in the indicator

Conclusion

The composite VIX indicator performs best in range-bound or uncertain market conditions .

When prices fluctuate within a narrow range and a breakout is imminent , this indicator analyzes the strength of the trend and the likelihood of a breakout to help traders assess the level of market volatility .