Kaufman Volatility indicator is a VertexFX client-side indicator script that provides a measure of volatility and in identifying the current stage of the market.
This indicator was designed by Perry Kaufman and is used in combination with other indicators to estimate the stop-loss and volatility characteristics of the market.
When the market is in a consolidation phase, the Kaufman Volatility indicator is dropping in value. On the contrary, when the market is trending strongly (either bullish or bearish) the Kaufman Volatility indicator is rising. It does not provide us with the direction of the trend, but only the strength of the trend.
When the market is in a consolidation phase, the Kaufman Volatility indicator is dropping in value. On the contrary, when the market is trending strongly (either bullish or bearish) the Kaufman Volatility indicator is rising. It does not provide us with the direction of the trend, but only the strength of the trend.
To calculate the Kaufman Volatility, we first find the absolute difference in the Close of the current candle from the previous candle.
This absolute difference is then added over the recent PERIOD bars to derive the Kaufman Volatility indicator.
This absolute difference is then added over the recent PERIOD bars to derive the Kaufman Volatility indicator.
The Kaufman Volatility indicator does not provide BUY or SELL signals.
BUY - This indicator does not provide BUY or SELL signals.
To use Kaufman Volatility Indicator download it from here, then place it at VertexFX VTL directory:
C:\Users\"Username"\AppData\Roaming\VertexFX Client Terminals\"Company name"\VTL10\Local VTL Scripts
Then right click on the tree and select refresh or restart your client station and you will find under VTL local scripts in your client terminal.
You can check this video that talks about the Kaufman Volatility Indicator: