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Volatility Switch Indicator for MetaTrader 5 Download – Free – [TFlab]

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Volatility Switch Indicator for MetaTrader 5 Download – Free – [TFlab]
Volatility Switch Indicator for MetaTrader 5 Download – Free – [TFlab] 0
Volatility Switch Indicator for MetaTrader 5 Download – Free – [TFlab] 1
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The Volatility Switch Indicator (VSI) is a useful tool among MetaTrader 5 indicators. It is designed to display overbought and oversold conditions.

This indicator fluctuates between 0 and 1 and features three key levels: 0.2, 0.5, and 0.8. These levels help analyze reversal zones or trend continuation areas in the market.

Volatility Switch Indicator Specifications

The table below summarizes the specifications of this indicator.

Indicator Categories:
Oscillators MT5 Indicators
Volatility MT5 Indicators
Trading Assist MT5 Indicators
Platforms:
MetaTrader 5 Indicators
Trading Skills:
Intermediate
Indicator Types:
Reversal MT5 Indicators
Timeframe:
Multi-Timeframe MT5 Indicators
Trading Style:
Intraday MT5 Indicators
Trading Instruments:
Forex MT5 Indicators
Crypto MT5 Indicators
Stock MT5 Indicators
Forward MT5 Indicators

Indicator at a Glance

The Volatility Switch Indicator (VSI) provides valuable signals for identifying price reversal areas.

When the blue oscillator line crosses above the 0.2 level, it signals an oversold condition, indicating a potential increase in demand and a possible upward price movement.

Conversely, when the oscillator line crosses below the 0.8 level, it suggests an overbought condition, meaning the market is entering a bearish phase.

Indicator in a Bullish Trend

In the USD/CHF currency pair chart, the price reaches the oversold zone, and the blue oscillator line crosses the 0.2 level upwards. Once the bullish trend is confirmed, traders can use these signals to enter buy trades.

Volatility Switch Indicator in a Bullish Trend
Evaluating the Volatility Switch Indicator in an uptrend and oversold areas

Indicator in a Bearish Trend

After the price reaches oversold zones, the indicator line moves toward the 0.8 level.

When this level is crossed downward, traders can consider this a sell signal.

VSI Volatility Switch Indicator in a Bearish Trend
Analyzing bearish trends and overbought zones in the VSI Volatility Switch Indicator

Indicator Settings

The image below displays the full settings of the Volatility Switch Indicator:

Volatility Switch Indicator Settings
Detailed view of Volatility Switch Indicator settings
  • The lookback period for indicator calculation: Defines the number of past candles used for calculations.
  • The threshold for the overbought condition: Determines the overbought level.
  • Threshold for oversold condition: Determines the oversold level.

Conclusion

The Volatility Switch Indicator (VSI) is a useful tool designed to detect overbought and oversold zones.

This MetaTrader 5 oscillator analyzes market volatility and normalizes values within the 0 to 1 range, helping traders identify key changes in price behavior.

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FAQs

How does the Volatility Switch Indicator (VSI) work?

The VSI fluctuates between 0 and 1, using three key levels, 0.2, 0.5, and 0.8, to indicate market volatility changes.

What type of trading is the Volatility Switch Indicator suitable for?

The Volatility Switch Indicator suits day trading, scalping, and even long-term trading strategies.

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