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The Volatility Quality Index can help you identify better trade opportunities by distinguishing between good and bad volatility. Formula for the system discussed in Advanced Strategies (p. 56) / August 2002 Active Trader Magazine.

On the internet I found two different versions of this indicator.
So I added the both algorithms.
If someone has the original specification would ask him to forward it to me,

Algorithm One

If TrueRange <> 0 and (High - Low) <> 0 Then
VQI = ((Close - Close[1]) / TrueRange + (Close - Open) / (High - Low)) * 0.5
Else
VQI=VQI[1];
VQI = AbsValue(VQI) * ((Close - Close[1] + (Close - Open)) * 0.5);
End

Algorithm Two

VQI:=If(ATR(1)<>0 AND (H-L)<>0, ((C-Ref(C,-1)/ATR(1)) + ((C-O)/(H-L)))*0.5,PREV);
VQI:=Abs(VQI)*((C-Ref(C,-1)+(C-O))*0.5);




The indicator was revised and updated

Volatility Quality Index by Thomas Stridsman



Simple Vq strategy is available here.
http://fxcodebase.com/code/viewtopic.ph ... 86#p114686

hi Apprentice,

Thank you for creating the VQ lua indicator.
I have found that the lua version did not give as many signals as the VQ MT4 version which I attached in viewtopic.php?f=27&t=10134&p=21775#p21232.
Could you kindly help to review?

In addition, is it possible to add the arrow signals and create a strategy?

Thank you.

Apprentice wrote:Volatility Quality Index by Thomas Stridsman

The attachment vq.png is no longer available

The attachment vq.png is no longer available

Hello Apprentice,

Happy New Year!

I tested the VQ lua version but it does not have the same signals as FXCM MT4.
The VQ lua version only gives a straight line, compared to the MT4 FXCM which gives several signals with arrows in the same timeframe.
Please see enclosed comparisons.

Can you please help to review the code?
Thank you.

Thanks for the information.
Someone will take a second look.

i request a strategy based on VQI


buy: s2 cross over s3
sell: s2 cross under s3

Your request is added to the developmental cue.

Hello Apprentice,

This indicator after I put it at the bottom of the chart keeps disappearing after a while showing an error message. Am I doing anything wrong myself or is it the indicator working funny?

Apprentice, as far the prior email, this indicator disappears ONLY when I use it with algorithm 1.
Algorithm 2 instead seems to be working fine. Please tell me if I am doing anything wrong?

Bug Fixed.