Harmonic Volatility Indicator is the first technical analysis applying the Fibonacci analysis to the financial Volatility. Harmonic volatility indicator is another level of price action trading tool which combines robust Fibonacci ratios (0.618, 0.382, etc) with trading volatility. Originally, Harmonic Volatility Indicator was developed to overcome the limitation and the weakness of Gann’s Angle, also known as Gann’s Fan. We have demonstrated that Harmonic Volatility Indicator can be applied in a similar manner to Gann’s Angle (or Gann’s Fan) to your chart. At the same time, since the volatility is very important information for traders, Harmonic Volatility Indicator can bring many other benefits to traders too. Harmonic Volatility Indicator can be well incorporated to your existing technical analysis or you can use it as totally standalone technical analysis for your trading. It is also very effective in spotting mature trend in its end phase. You can use this tool to identify the significant support resistance levels, trend reversal point and trend strength.
Possible Trading Setup and Strategies
As long as you understand the basic trading principle, you can always expand your trading with different ideas using Harmonic Volatility Indicator. Here are some examples:
Possible Trading Setup 1 – Harmonic Volatility Indicator as zone trading (reversal and breakout trading setup)
Possible Trading Setup 2 – Harmonic Volatility Indicator and common oscillators (reversal trading setup)
Possible Trading Setup 3 – Harmonic Volatility Indicator and Market Profile (reversal trading styles and possible to trade with breakout mode)
Possible Trading Setup 4 – Harmonic Volatility Indicator and Harmonic Pattern Plus and Market Profile (reversal trading setup)
Harmonic Volatility Indicator Settings
These inputs control the global setting of the indicator.
Number of Daily Session: 0 means indicator will not draw any daily volatility lines. 1 means that indicator will draw one set of daily volatility lines. You can create multiple session of daily volatility lines. However, too many sessions can slow down your MetaTrader. So use the right number for your computer.
Number of Weekly Session: It is the same as daily session input.
Number of Monthly Session: It is the same as daily session input.
Starting Index: 0 is default value. For 0, indicator will start to draw from session 0.
Use White Chart: True means that you will use white background chart.
Use Individual Line Color: If this is false, then you will use global color scheme. If this is true, then you can use individual color scheme
Daily Line Color: Color of daily line
Weekly Line Color: Color of weekly line
Monthly Line Color: Color of monthly line
Show Probability Lines: switch on and off the curved probability line
Show Final Projection: switch on and off the trading zone box
Projection Margin: size of trading Zone (0.05 = 5%, 0.0618 = default)
Market Profile Settings
Use Market Profile: Switch on and off market profile from your chart
Session: choose from daily, weekly or monthly only
SessionsToCount: Number of sessions for which to count the Market Profile
Color for Market Profile: color for market profile
Color for Median: color for median value
Color for Value Area: color for value area
Input Setting for Each Probability Line
Each probability line can be switched on and off according to your preferences. You have the same setting for nine lines.
Use Line 1: You can switch on and off the line
Probability Line 1: You can set the ratio of the line
Probability Line 1 Color: Color for line
Probability Line 1 Width: width for line
Probability Line 1 Style: style for line
Further Note about this indicator
This indicator is Graphic Intensive. Therefore, when you use too many session for harmonic volatility indicator and market profile, this can slow down your MetaTrader. So try to use right amount of session suit for your computer specs if you are going to use this indicators for many symbols.
Keyboard Short Cut
Press Keyboard D: Redraw harmonic volaltiy indicator from your chart.
When Daily Harmonic Volatility session is on, you can not use D1, W1 and MN1 timeframe. In addition, when Daily Market Profile session is on, you can not use H4, D1, W1 and MN1 timeframe.