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Volex is a trading system that uses changes in volatility to indicate a change in prices. It analyses average true ranges to detect unusual price action.

The Volex indicator can be used to confirm trends or changes in direction. Continuing trends will usually display lower levels of volatility, while higher levels of volatility will frequently be encountered around changes in direction.

Method of Calculation

The calculation of Volex starts with a True Range determination of each interval in a user defined Period. Refer to the Average True Range Indicator's help topic for a description of the True Range calculation.

The true ranges for the entire user defined Period are then averaged. The resulting Average True Range (ATR) for the period is then multiplied by the user defined ATR Multiple.

The result is then added to the current interval's High and this amount is plotted as the upper Volex line.

The result is then subtracted from the current interval's Low and this amount is plotted as the lower Volex line.

Increasing the number of periods will smooth out the line. Decreasing the number will make the lines more responsive to current prices.


User Settings


The user can set the number of periods to use in the Volex calculation.

The more periods used, the smoother the Volatility display will be.

Type in a whole number in the Periods text box in the Parameters tab of the Volex Properties dialog box.

ATR Multiple

The ATR Multiple will control the spread between the two lines.


The Volex Range is displayed in an indicator window below the price chart.

The exact display of the plot is controlled on the Plots tabbed page of the Volex Properties dialog box.

The Style selected for the plot can be one of the following: Solid, Dashes, Dots, Points, Histogram or Step.

Once the style is selected the Color, Weighting and Visibility can also be controlled from this page.

The Scale's display is controlled from the Scale Settings and Scale Appearance tabbed pages.

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