Forex Velocity Indicator EA MT4
The Forex Velocity Indicator depicts the average rate of price change during the time intervals where this rate was almost constant. The reliable indicator reading is ensured by the strong algorithm employed in VP to smooth out the price from its unpredictable leaps, which does not react to simple price volatility and tiny changes.
The indicator may be used to track trends and the points at which they revert when the indicator values abruptly alter their sign. Furthermore, the rate of price change in VP is normalized, and the accomplishment of indicator readings with absolute values greater than one is usually connected with a trend change. If the normalized speed is substantially lower than the modulo speed, only rollbacks occur.
The VP indicator creates a polyline using segments of variable length regression lines, with the beginning of each segment coming from the end of the preceding segment (without showing it). Each regression segment is constructed until the variation or spread of price around it begins to reach a crucial value, at which point the segment is completed and the next segment is constructed. This strategy is based on the fact that the price variance around the regression segment begins to rise sharply with huge jumps and increased volatility, both of which occur when the trend movement changes, allowing the VP indicator to detect the trend shift.
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