Damiani Voltameter Indicator for MetaTrader 4
The Damiani Voltameter is a volatility-based oscillator designed to distinguish between trending and non-trending market conditions. Rather than issuing direct buy or sell signals, this indicator helps traders determine when trading is statistically favorable and when the market should be avoided due to excessive noise or low volatility.The oscillator is composed of two core components:
- Green Line (Volatility Line): Represents genuine market movement and directional strength
- Gray Line (Noise Line): Measures market noise and non-directional price behavior
Table of Specifications for Damiani Voltameter Indicator
Specification Category | Details |
Indicator Categories | Oscillators MT4 Indicators Signal & Forecast MT4 Indicators Volatility MT4 Indicators |
Platform | MetaTrader 4 |
Trading Skill Level | Intermediate |
Indicator Types | Range MT4 Indicators Reversal MT4 Indicators |
Timeframe Compatibility | Multi-Timeframe MT4 Indicators |
Trading Styles | Day Trading Scalping Swing Trading |
Trading Instruments | Forex Cryptocurrency Stock Market |
Download Link |
Damiani Voltameter Oscillator at a Glance
In practical use, the Damiani Voltameter functions as a market condition filter:
- When the green volatility line moves above the gray noise line, the market is considered active and tradable.
- When the gray line dominates, price action is classified as low-volatility or ranging.
Bullish Market Conditions
On the USD/CAD one-hour chart, the indicator initially shows the gray noise line above the green line, signaling a ranging and unreliable market. This condition is clearly marked by the red low-volatility line.Once the green volatility line crosses above the gray line, the market transitions into a valid bullish trend, indicating that price movements are becoming directional and tradable.
Bearish Market Conditions
On the 30-minute Binance Coin (BNB) chart, the volatility line decisively crosses above the noise line while price breaks below the established range.This shift confirms increasing volatility aligned with bearish momentum, signaling that the market has exited consolidation and entered a valid downward trend.
Damiani Voltameter Indicator Settings
The adjustable parameters of the Damiani Voltameter oscillator include:
- Viscosity: Number of candles used to measure market noise
- Sedimentation: Smoothing period for filtering short-term price fluctuations
- Threshold_level: Benchmark for comparing volatility against noise levels
- lag_supressor: Enables delay-reduction logic for faster signal responsiveness
Conclusion
The Damiani Voltameter oscillator is a powerful volatility filter that helps traders avoid low-quality trading environments. While it does not provide direct entry or exit signals, it plays a crucial role in identifying when market conditions are suitable for strategy execution.By filtering out low-volatility and directionless phases, this indicator significantly enhances risk control and improves overall trade timing when combined with other technical tools.
