Quote:
Originally Posted by forexmoments
How does this indicator compare with Damiani Volatmeter?
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That one uses average true range and standard deviation. ATR (average true range) is another Wilder indicator from the 1970s, it measures volatility. After some math which I won't go into here, it tries to pick local highs and lows over 14 periods, an inverse of what is shown on ATR is what is the local high or low on the price action. Basically, a high ATR is supposed to signify low on your price action and vice versa.
ADX and CCI are used in ToR, average directional index and commodity channel index. ADX shows whether you are trending or ranging (oscillating) and CCI shows variation from a typical price.
So basically, they are different, fundamentally and technically, is the answer. And actually the name volatmeter is short for volatility meter. ToR is short for Trending or Ranging. So now you know.