QWLoL is a new concept indicator. L o L stands for Limit of Lenght. That is what ww are looking for in situations
where the market looks moving sideways but there is a trending inside the curve. The challenge would be identify the lenght of curve
and estimate with good probability that the price would rebate. Then we found the limit of lenght for market reversion.
The red line represents the Volatility Reference Number over a bar chart. The absolute number can
vary on bar data series, so it does not represent much. Find the time frame or trade collection you
want to draw your bars. As longer your time frame is less variation you will have on the indictor numbers.
Set the “Perio” parameter which is the periods or bars back. Quant-Wise algos has been using numbers
in the Fibonacci Sequence like 5, 8, 13, 21, 34. After thousands of hours running backtests, we found
these number have a representative approach.
Combine with other indicators: Volatility indicator shows if the market is trending but does not show
the direction. In order to get a better decision to put your orders, you should use directional
indicators like SMA, EMA or MACD. It is the best way to avoid false positive entry.