Philosophy
This study records the closing value of a bar when the moving average of the Historical Volatility crosses up or down.
Each momentum indicator has different characteristics and therefore different trading opportunities. Historical volatility is not an absolute track of momentum in itself and therefore signals should not be interpreted as defining beginnings or ends of trends, but rather changes in the underlying characteristics of the market itself.
Interpretation
In contrast to most of the other Step Studies the default does not record the bar value, but the study value. This is because we are not tracking momentum but shifts in Volatility. If either study Steps up Volatility is rising and vice versa.
HVlStep Parameters
|
Name |
Default |
Definition |
|
Display |
Both |
Dictates whether both Steps or just individual ones are shown. |
|
Value to Record |
bars |
Either to record base study output or price value. |
|
Price |
Close |
Disabled if Base study is selected as Value to Record. |
|
HVol Type |
Percent |
What calculation is to be used. |
|
HVol Period |
21 |
Period of HVOL. |
|
HVol Ann.Factor |
250.0 |
This reflects how many trading years there are in a year. |
|
MA Period |
13 |
Period of Moving Average above HVOL. |