Volatility ratio - stepped indicator

via forex-tsd.com

Maybe a bit more useful way of measuring what the normal volatility should be.

In this one instead of having a fixed level of 1 for a "normal volatility" you can have a dynamicaly built expected normal volatility. When volatility changes are kept within expected deviations, the "normal level of volatility" is kept as a horizontal line that depends on previous changes. If one prefers fixed level 1 for "normal volatility" then simply set the DeviationsForSteps parameter to 0 or less than 0.

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