Best Free Volatility Indicator on TradingView and MetaTrader 4/5 for Gold Forex Trading

This free technical indicator will help you easily measure the market volatility on Forex, Gold or any other market.

It will show you when the market is quiet, when it's active and when it's dangerous.

We will go through the settings of this indicator, and you will learn how to set it up on TradingView.

Historical Volatility Indicator

This technical indicator is called Historical Volatility.

It is absolutely free and available on TradingView, MetaTrader 4/5 and other popular trading terminals.

TradingView Setup

Let me show you how to find it on TradingView and add it to your price chart.

Open a technical price chart on TradingView and open the "Indicators" menu (you will find it at the top of the screen).

Search "Historical Volatility" and click on it.

It will automatically appear on your chart.

Double-click on the indicator and a settings menu will appear.

• "Length" parameter will define how many candles the indicator will take for measuring the average volatility. (I recommend keeping the default number, but if you need longer/shorter-term volatility, you can play with that)

• Timeframe drop-down list defines what time frame the indicator takes for measuring the volatility. (I recommend choosing a daily timeframe)

And keep the checkboxes unchanged.

How to Use the Indicator

Now, let me show you how to use it properly.

Wider the indicator and analyse its movement at least for the last 4 months.

Find the volatility range - its low levels will be based on the lower boundary of the range, high levels will be based on its upper boundary.

This is an example of such a range on USDCAD pair.

• When the volatility stays within the range, it is your safe time to trade.

• When volatility approaches its lows, it may indicate that the market might be slow.

• Highs of the range imply that the market is very active

• In-between will mean a healthy market.

  
  

The Extremes

The violation of a volatility range to the downside is the signal that the market is very slow. This would be the recommended period to not trade because of high chance of occurrence of fakeouts.

An upward breakout of a voliatlity range is the signal of the extreme volatility. It will signify that the market is unstable, and it will be better to let it calm down before placing any trade.

Volatility Analysis

That is how a complete volatility analysis should look.

At the moment, volatility reached extreme levels on CADJPY pair.

The best strategy will be to wait till it returns within the range.

Remember This

With the current geopolitical uncertainty and trade wars, market volatility reaches the extreme levels.

Such a volatility is very dangerous, especially for newbie traders.

Historical volatility technical indicator will help you to easily spot the best period for trading and the moment when it is better to stay away.