The Damiani Volameter is another trend and range filter. I have it available for download in both metatrader 4 and Ninjatrader 7 platforms. When the white line is above the green line, a red line will print at the bottom of the indicator window and it shows that the market is ranging. When the green line is above the white line, the market is trending. The indicator does not display which direction the market is trending, thus, you might need to add another directional indicator like momentum, to make it a complete trading system.
How do I use it?
Like the squeeze break trend and range filter indicator, I suggest using it just purely to filter the ranging market from the trending market. Like most range and trend filters, the challenge is to know when the range market is ending and when the new trend is starting, vice versa.
Trending market = use trend strategies (moving average cross, etc)
Range market = use range strategies (stochastics, oscillators)
Here’s a screenshot of it in action:
Download MT4 version: Damiani volameter
Download Ninjatrader 7 version: Damiani Volatmeter NT7
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