SCREENER: VOLATILITY AND TREND

Description

This screener calculates five values related to volatility and trend. Based on these five facts you can decide which trading strategy to use.

These are the advantages of the Volatility and Trend screener:

  • The screener identifies the most volatile markets.
  • The screener determines if a market is in a trend or in a range.
  • The screener indicates the strength and direction of the trend.
  • Armed with the facts you can decide on a trading strategy.

The Volatility and Trend screener gives the trader the following five values for any market:

  • The average volatility in percent over the last 20 days.
  • The slope of the trend in percent over the last 20 days.
  • The slope of the trend in percent over the last 100 days.
  • The strength and direction of the trend over the last 20 days.
  • The strength and direction of the trend over the last 100 days.
Screener to find instruments (forex, futures, indices etc) in a bearish trend.   This example shows the screener applied to forex pair. They are ranked from most volatile to least volatile.

Deciding on a trading strategy

The forex pair USD/RUB, for example, is clealy in a trading range. Many traders would discard it. But ... it scores high in volatility. A trader could consider trading this volatile forex pair in a range as follows:

  • Use the MAD Rebound trading strategy. This strategy is suitable for markets in a range.
  • Use the Range Break-out strategy. Trade when this forex pair breaks out of its range.
  • Draw the range channel in the chart and set the NanoTrader to buy each time the market price hits the bottom of the range and/or short sell each time the market price hits the top of the range.
Screener to find instruments (forex, futures, indices etc) in a bullish trend.   This example shows the trading range of the USD/RUB.

Other interesting screener results could be:

  • Markets which are volatile and show a strong trend, both short and long term. For example, EUR/ZAR in the table above.
  • Markets which accelerate (e.g. a mild long term trend and a strong short term trend). For example, GBP/ZAR in the table above.