QWLoL Indicator

There is always a opportunity when you look the lenght

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.


Quantifying

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 up parameters

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.

Working together

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.