VolVol

VolVol: Volatility & Volume

The indicator consists of 3 oscillating components that are all represented on a positive/negative percentage scale.

1. Direction: Green/Red shaded area
   Smoothened distance between Close and EMA of Close relative to StDev of Close
   
2. Intensity: Turquoise line
   If direction = bullish: Smoothened distance between Low and EMA of Low relative to StDev of Low
   If direction = bearish: Smoothened distance between High and EMA of High relative to StDev of High
   
3. Momentum: Fuchsia line
   Double exponential average of bullish closing volume - bearish closing volume
   

The indicator provides the following signals on the candlestick charts based on the above components' movements.

• Bullish position signals: Below candles
  
• Bearish position signals: Above candles
  

1. Entry signal [Circle]: Increase in all 3 factors or sharp increase in Intensity + Momentum
   
2. Add signal [Triangle]: Trend slowdown because of volume drop or retracement following a temporary consolidation
   
3. Exit signal [Square]: Increase in Intensity and Momentum against the prevailing trend direction
   

There may be simultaneous Bullish and Bearish signals. These should be treated as hedges for existing positions.