Ili (BD%), which is a volatility index that measures volatility in percentages instead of points. The concept behind BD percent is to create an index that is based on the standard deviation (CSD) which ranges from zero to 100 percent.
You can use BD% to compare the volatility of the same security over different time periods or over different time frames. In addition you can make use of BD percent to evaluate the volatility between different securities on different markets, in terms of percentages instead of points.
HOW TO USE "BD%"
To learn more about BD%, read the user guide here: https://www.mql5.com/en/blogs/post/718182
If you have questions send me a private message or put your comments in.
Muhammad Al Bermaoui, CMT
You can use BD% to compare the volatility of the same security over different time periods or over different time frames. In addition you can make use of BD percent to evaluate the volatility between different securities on different markets, in terms of percentages instead of points.
HOW TO USE "BD%"
- If BD% falls below 90% and then is above that level it's an indication that prices are able to fluctuate within a range.
- If the BD percent is greater than 90%, then it crosses that level downward and the price is higher than its simple moving average it's a sign that a new uptrend has started. As the BD percentage falls further and deeper, the volatility and intensity of the trend grow. When the BD percent is zero indicates that the your volatility is at its greatest.
- If the BD percentage is above 90% and then crosses that level downwards while the price is below its simple moving average, it is an indication that a new downtrend is beginning. As the BD percentage falls further and deeper, the volatility and strength of the trend increases. If BD% is zero percentage, it means that it is the highest level of volatility.
To learn more about BD%, read the user guide here: https://www.mql5.com/en/blogs/post/718182
If you have questions send me a private message or put your comments in.
Muhammad Al Bermaoui, CMT