INDICATOR

Volatility Zero Trend Close-to-Close

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Volatility Zero Trend Close-to-Close – FX Replay Guide

The Volatility Zero Trend Close-to-Close Indicator in FX Replay helps you track raw price movement between closing candles, giving you a fast and simple snapshot of market volatility. It’s ideal for spotting momentum shifts, entry timing after consolidation, or filtering trades during quiet price action.

How to Use It in FX Replay

Add the Indicator:

  • Open the Indicators panel.
  • Search for “Volatility Zero Trend Close-to-Close” and apply it to your chart.
  • Default settings work well, but you can apply smoothing (e.g., a short SMA) for clarity.

Interpreting the Indicator:

  • High reading: Indicates strong price movement → increased volatility.
  • Low reading: Indicates a quiet or consolidating market.

Use as a volatility filter:

  • Trade only when value exceeds a threshold.
  • Avoid entries when values are flat.

Trade Setup Applications

  • Breakout Entry:
    Look for a spike in value after tight price action → signals likely momentum burst.
  • Trend Filter:
    Use rising volatility in direction of trend to confirm continuation.
  • Reversal Watch:
    If volatility spikes against current structure, watch for potential trap/reversal.

Combine With FX Replay Tools

Pair with:

  • VWAP or SMMA for trend direction.
  • Fractals for breakout trigger levels.
  • RSI or TEMA for momentum alignment.

Backtesting Tips

Track trade performance during:

  • Volatility expansions (e.g., session opens).
  • Volatility contractions (e.g., Asia session range).

Journal entries like:

  • Low volatility → FVG tag → volatility spike → breakout
  • False breakout on low volatility reading

Pro Tip

In FX Replay, use this indicator to filter low-quality setups:

  • Don’t trade breakouts without rising volatility.
  • Spot volatility compression zones for potential explosive moves.
  • Validate session timing (e.g., NY open volatility spike vs. overnight calm).

It’s lightweight and simple, but powerful when integrated into structured backtesting models.