What is the Volatility Quality Indicator for MT4?

The Volatility Quality Indicator (VQI) is a technical analysis indicator used in forex trading. The VQI measures the degree of randomness or volatility in price movements over time.

Volatility Quality Indicator

Download the Free Volatility Quality Indicator

The VQI can help traders identify situations there’s more volatility and risk and make better trade decisions accordingly. It can also help detect sharp moves or trend reversals before they happen.

How to use the Volatility Quality Indicator for MT4?

The Volatility Quality Indicator (VQI) is a technical indicator used in trading forex that measures the volatility of an asset’s price. This helps traders identify if a security is overvalued, allowing them to make more informed decisions about buying or selling.

To use the VQI for MT4, first open your Forex account and click on “Indicators” from the main menu bar. Next, select “Volatility Quality Indicator” from the alphabetical list of indicators and choose “On/Off” as your mode of operation. Tick the box next to “Inputs: Daily bars only,” then select which currency pairs you want to include in your analysis by clicking on the corresponding checkboxes. Click on the green “Calculate Now!” button at the bottom of this window to analyze your data points.

Once you have set up your indicator settings, every time a new bar appears in either currency pair, it will automatically be calculated and displayed in red above each column header, along with its associated quality score (0-100). The higher percentage values indicated by red text indicate higher levels of volatility, while lower percentages represent less volatile prices.

So what are some tips for using the VQI?

-Keep an eye on intra-day and inter-day volatility when assessing asset value potential using this indicator. A high degree of intra-day volatility (volatility in the current trading day) is generally a good indication that an asset is overvalued and likely to decline. In contrast, higher levels of inter-day volatility may signal that an asset is undervalued and poised for growth.

-Be cautious when using this indicator to make buy or sell decisions – it’s essential not to get overly swayed by high or low volatility figures alone. Instead, use them as general market sentiment indicators, and adjust your trading positions accordingly.

Volatility Quality Indicator MT4 trading settings

Forex volatility quality indicator (VQI) is a technical analysis tool used to identify market uncertainty and reveal future trends. MT4 forex trading settings can be used to improve VQI accuracy and trade with confidence during volatile markets.

To get the most out of your VQI analysis, you’ll need to set up your MT4 account correctly. Here are some tips:

– Use live quotes when possible – This will allow you to see how prices are moving in real-time, which will help you better understand which direction the market is heading in.

-set broker alerts for important news events – When big news breaks that could impact stock prices set an alert so that you’re notified immediately so that you can make informed trading decisions.

-Use lagging indicators alongside your VQI – Lagging indicators show trends over a more extended period than traditional candlesticks; this will help indicate whether price action is consolidating or continuing its current direction.

Volatility Quality Indicator Advantages

-It can identify when markets are very volatile, which means there’s a high chance of price changes. This helps you make more informed trading decisions.

-It also indicates where the market is headed next based on past patterns and trends. This allows you to minimize your risk while still taking advantage of opportunities.

-Finally, VQI alerts you whenever the quality indicator falls below a certain threshold, giving you an early warning signal that suggests it’s time to sell or buy stocks/bonds accordingly.

Volatility Quality Indicator Disadvantages

The quality indicator (QI) is a popular tool used by forex traders to measure the volatility of an asset. But what are its disadvantages? Here are three:

-First, QIs can be misleading because they usually focus on short-term fluctuations rather than long-term trends. This means that they may give you inaccurate information when making trading decisions.

-Second, QIs often ignore essential factors such as supply and demand dynamics. As a result, they may lead you astray if used in conjunction with other market indicators.

-Third, QIs can also create false signals about opportunities or risks that do not exist. If you’re using them for technical analysis purposes only, then this shouldn’t be a problem. Still, this could be harmful if you’re trying to use them for investment planning or risk management purposes.

Volatility Quality Indicator installation on MT4

To install the Volatility Quality Indicator on the MetaTrader 4 (MT4) platform, you can follow these steps:

  1. Download the indicator: You can find the Volatility Quality Indicator online; sometimes, it’s a custom indicator you can download to your computer.
  2. Open MT4: Open the MetaTrader 4 platform on your computer.
  3. Go to the “Navigator” window: To access the Navigator window, click on the “View” menu, and then click on “Navigator.”
  4. Click on “Indicators”: In the Navigator window, click on the “Indicators” tab.
  5. Select “Custom Indicators”: In the Indicators tab, select the “Custom Indicators” option.
  6. Add the indicator: Click the “Browse…” button and navigate to the location where you saved the Volatility Quality Indicator on your computer. Select the arrow and click “Open.”
  7. Drag and drop the indicator: Once added to the list of custom indicators, you can drag and drop it onto your chart.
  8. Configure the settings: You can configure the indicator’s settings to suit your trading style.
  9. Apply to a chart and start using it.

Please note that the above steps are general and may vary depending on the version of MT4 you are using. Also, ensure you have the appropriate rights to use the indicator if you got it from a third party.

It’s important to note that volatility indicators such as the Volatility Quality Indicator are not standalone; they should be used with other indicators and market analysis to make more informed trading decisions.

Volatility Quality Indicator mt4

Volatility Quality Indicator mt4 free download


This article covers the Volatility Quality Indicator (VQI) and how to add it to your MT4 platform. The VQI is a popular volatility indicator that provides investors information on volatility quality across different asset classes.

Author: Dominic Walsh

I am a highly regarded trader, author & coach with over 16 years of experience trading financial markets. Today I am recognized by many as a forex strategy developer. After starting blogging in 2014, I became one of the world's most widely followed forex trading coaches, with a monthly readership of more than 40,000 traders! Make sure to follow me on social media: Instagram | Facebook | Linkedin | Youtube| Twitter | Pinterest | Medium | Telegram Channel | Quora | Reddit

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