Volatility Hyper Trend indicator is a signal indicator based on the use of two standard ATR indicators.
ATR indicators are used with the same period and differ only in the multiplier, which provides the difference in their sensitivity and, accordingly, the shift of these indicators relative to each other.
Signals to buy (blue arrow) and sell (red arrow) appear at the intersection of indicators ATR, resulting from changes in the level of volatility. At the same time, the segments of the ATR indicators have a coloring that corresponds to the current price trend:
- Blue is an upward trend;
- Red is a downward trend;
- Green is a neutral trend.
According to ForTrader.org experts, when using Volatility Hyper Trend indicator as an independent source of trading signals, it is necessary to introduce additional filters. It is also necessary to check the indicator for signals overriding.