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Need help to code "The Volatility Stop Entry Technique"
The Volatility Stop calculates the volatility by using the average range of the price bar. It is calculated by multiplying the average range bya constant. The value is added to the lowest close when short, and subtracted from the highest high when long:
Range = (Range x (N - 1) + High - Low / N)
Short = Lowest Close + Range x C
Long = Highest Close - Range x C
It is best to use the Volatility Stop in strongly trending markets. It is an excellent entry technique and in most instances will be superior to valid trend line breaks, or channel breakouts. The reverse stop also acts to quantify risk as it relates to volatility. The constants should be kept between 2.5 and 4.0.
I have no personal experience with this indicator, but I have read about it in the book "Fibonacci Ratios with Pattern Recognition".
I would be verry happy if somone could code this indicator.
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