The Williams VIX indicator instead shows the volatility in the market.
Basically, rather calculate the volatility over a set period — ala bollinger bands — it takes the current volatility from the lowest low and highest high and extrapolates that out 30 days — or whatever period you select.
The result is then shown via bars, which through their size and color, give you a sense of the volatility in the market. But wait… why would we want to see the volatility anyway?
Well, volatility is a measure of how greedy or fearful traders are. With fear and greed at a maximum, the banks have a big incentive to take the market the other way, either to make money — in the case of a best indicators for tradingview — or take profits or close trades, for retracements and consolidations.
What the VIX allows us to do, then, is get a sense of when price may be reversing by quantifying the level of fear and greed in the market.
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The question now is, how do we use that in our trading? See for yourself… Right before most of the above retracements and reversals began, the volatility was high — big bars started appearing, indicating traders were getting very fearful or greedy about the future. Since that gave the banks an incentive to enter the market, it made a reversal highly likely, which is what we then see. In this case, I suggest watching for a rise in volatility big bars when price enters a supply or demand zone.
Supply and demand zones form from the banks either placing trades, taking profits, or closing trades.
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But as I explained, the banks usually do one of the above when the volatility is high. By putting two and two together then, we know when and where price could reverse.
The VIX tells us whether the banks are interested in making price reverse hence the high volatility — big bars.
And supply and demand zones give us the point where it could reverse. That tells us traders are earnings very quickly greedy about the future — the sharp decline probably made them think price would keep falling. With all these retail traders getting short, the banks have a huge number of sell orders to use for their own devices.
In this case, taking profits off their sell trades, which requires lots of traders selling. What happens when they take profits?
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Price reverses and begins rising, making most short traders lose, and giving the banks a retracement they can now use to get more sell trades placed — pretty smart, huh? Give it a try yourself, see what works best for you. I could never find a method that got me out at the right time.
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However, a couple of years ago, I stumbled across something that actually worked quite well… The Heiken Ashi chart. The answer lies in what it shows. The heiken ashi chart shows the price, just like a normal candlestick does.
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It calculates the average, and then each candle appears bullish or bearish according to whether the average price rose or fell for that period of time. Giving you a better idea of what the current trend is.
The chart tells us to take profits whenever the candles change colour. That means the candles stay the same colour for much longer than usual, which gives us a better idea of the current trend.
If the candles change colour, we know a new trend or best indicators for tradingview move could be about to begin. So, to take profits with the heiken ashi, you simply wait for the candles to change colour… When they change, you take some profits because it shows the average price has changed;, price has a high probability of moving in the opposite direction for a while.
If the candles turn green, you take profits off your long trade. If the candles turn red, you take them off your short trade. Just move your stops closer to price — the volatility stop see below would be ideal for this.
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So by only taking a partial amount off, you can stay in the trade and continue to profit if price the trend stays the same. Why this strange change, you ask? The bars reveal how much volume came in at each price, not on specific candlesticks. Also, can you see how the bars are both green and red?
On top of showing price volume, the tool also shows whether the volume came from the buy-side green or sell-side redallowing to see what traders were up to around that price. So essentially, volume profile is like the jacked-up bodybuilder version of the normal volume tool.
Combine that with the buy and sell volume, and you can pinpoint exactly what traders were up to during that time. All you need is a basic understanding of what the bars show and what that means for the price level. For example, big bars indicate high volume — obviously. That shows there was A LOT of activity around that price, meaning it must have some importance in the market. The opposite is true for small bars.
There are a few ways you can use the volume profile tool in your trading… One of the easiest, however, is to help identify support and resistance points.
As we all know, support and resistance levels mostly form the banks buying and selling. They perform some kind of action placing trades, taking profits, closing tradesand that causes a reversal, resulting in a level forming. So, seeing high volume typically indicates a strong level of support or resistance. These clusters show that a significant amount of volume came into the market in and around those prices.
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But who could be behind such high volume? Only the banks, of course. They decided to come in and take some sort of action, like place trades or take profits, at those prices That resulted in a period of high volume and caused a support and resistance level to form.
Not bad, huh? Keep the tool at zoom level 3 with the row size set best indicators for tradingview 80 for best results.
Just head into the settings menu, change the row size, then zoom out 3 times from default. Knowing the right time and place to move our stops is something even the best traders struggle with. What we need is a new way to know when and where to place our stop, a way that limits our risk ontop of being easy to implement.
The result is a volatility adjusted picture of the current trend, as shown by the dots.
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So, what makes the volatility stop such a good tool for moving our stops? The answer is because it takes into account the current volatility in the market… it gives you a more accurate view of the current trend, allowing you to keep your stop much closer to price when in a trade. All the time, right! Best indicators for tradingview often, price reverses soon after, wiping out much of your profit. With the volatility stop, this rarely happens because your stop moves as the volatility and trend changes.
Rather than it being stuck at a low or high until another forms, best indicators for tradingview moves with price, securing you consistency more profit and keeping you a safe distance away from the small how to grow bitcoins on your home computer. On Tradingview, the tool is found inside the indicators menu. Once the indicator is on the chart, you need to change its settings.
Inside the menu, head over to the inputs box and change the multiplier to 3 and the Length to the following based on which timeframe you use: 5 Min — 20 Multiplier 6 15 Min — 20 Multiplier 6 30 Min — 20 Multiplier 5 1 Hour —