Juice Levels

Juice Levels indicator is a useful VertexFX client side VTL indicator for research and analysis of the trend strength and volatility. It comprises of three components, the Green component which is good strength of the trend. The Red component which is bad (underperforming) trend strength and the Yellow component which is the average trend strength.

When the standard deviation of the rate of change is above the THRESHOLD_LEVEL the Juice Level is green, implying the volatility is high and the trend strength. The concept behind this indicator is that market rotates between periods of high volatility and low volatility. The indicator uses the mean and standard deviation of the volatility over the recent PERIOD bars to calculate threshold levels. Using mean volatility over the recent PERIOD smoothes the indicator for fluctations. The standard deviation is used to determine thresholds since volatility exhibits Gaussian distribution – which means nearly 67% of fluctations are within 2 standard deviations. So, when the fluctuation is outside of 2 standard deviations, it means that the market is exhibiting high volatility compared to its own past.

The Green level implies high volatility, which means prices are moving at a fast speed. The price may be moving in the same direction of the current trend, or in the opposite direction of the current trend, or even a breakout from a sideways market. The Yellow level implies low volatility, which means price are at a slower pace than how they moved in the recent PERIOD bars. This implies that the current trend is slowing down if it is moving from Green to Yellow, or that the current trend is accelerating if it moved from Red to Yellow. The Red level implies extremely low volatility. The market is in a sideways phase and undecided about the direction of the trend. The market may also be at the end of the current trend. It is typically recommended to exit positions when market moves from Yellow to Red.

NOTE – This indicator Does Not provide Buy / Sell signals.

BUY / SELL – Avoid taking trades when the Juice Level indicator is Yellow or Red.

Usage

• Download the attachment from vStore or directly from the vStore tab in your terminal by performing a right click on it and selecting Download & Install
• Copy it to your company VertexFX Local VTL Files folder i.e. C:Program FilesCompany Namevtl10Local VTL Files
• Restart your Client Terminal or Right Click on “Local VTL Scripts” Tree Node to find the script.