Volatility Quality Histogram (NicoadW)

This indicator is based on the Volatility Quality Index ( VQI ) by Thomas Stridsman.

It shows the slope of the VQI in form of a histogram.

The VQI is calculated in the following Steps:

1. Applying a WeightedMovingAverage with the onto the low, open, high, close and prior close
2. Calculating the true range and the range from the results of step 1 and setting them into relation
3. Calculating a weighted lumpsum of the results from step 2 (This is the value of the widely known VQI )
4. The change from the current value of step 3 compared to the last value is the VQI-Slope
5. The VQI-Slope is filtered by only recogning changes greater as the User-Input
6. If the Slope is rising, its considered a long trend and if its falling its considered a short trend



User Inputs
Valuation Period: Length of the WMAs
Filter in Pips: minimum change of the VQI-Slope to result in a Trend-Change

Visuals
Inrease the size of the Signal: Highligts the Trend-Changes
Color Chart Bars: Colors the bars of the main chart depending on the trend given by the VQI