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Variation Oscillator

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The Variation Oscillator is a volatility-type indicator.

This indicator is based on a statistical measure known as coefficient of variation (COV).
COV is a standardized measure of dispersion for a set of values.
COV = 100 * standard deviation / mean

This oscillator measures the difference between COV and its sma and plots this difference.
Formula: Oscillator value = COV - sma of COV

The oscillator is positive when COV is greater than its sma.
The oscillator is negative when COV is lesser than its sma.

How to interpret the indicator's values:

Positive : the current volatility is higher than normal and trading is permitted.
Negative : the current volatility is lower than normal and trading is NOT permitted.

Recommended settings:
Cov = 10
Sma = between 20 and 100


*** If you're reading this and you find this indicator interesting, hit the like button and follow me!

*** Also comments are welcomed!

Happy trading!



ملاحظات الأخبار
After receiving feedback, I've decided that the oscillator should have 2 colors: green and red. This makes it easier to read it.

How to interpret indicator:

Green - trending; trading is permitted.
Red - consolidation; trading is NOT permitted.
ملاحظات الأخبار
Change in colors:

Blue - trending, trading is allowed
Gray - consolidation, no trading allowed

إخلاء المسؤولية

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