The Synthetic VIX mt5 indicator is a forex indicator mt5 that measures the increase or decrease of market volatility.
The mt5 indicator is based on Larry Williams’ TASC article “Fix the VIX”: Bernard Baruch described the forex market with these words: “market fluctuates.”
The indicator is displayed in a separate window below the main trading chart.
It fits all kinds of mt5 timeframes and currency pairs.
The default forex indicator settings can be modified directly from the input tab. Feel free to experiment with the indicator settings and parameters to fit your preferred preferences. Let’s take a look at these given inputs below.
Synthetic VIX period – defines the chart period for calculating the Synthetic VIX.
VIX mt5 indicator was initially calculated for the stock market only: the S&P 500, Dow Jones Industrial Average, and NASDAQ Index. Luckily, using a simple formula, the VIX can be duplicated and use for the forex market or any other market.
How to use the Synthetic VIX indicator:
It is straightforward to read VIX signals. High values provided by the indicator mean high volatility. Similarly, low values indicate low volatility. Simple as that.
How to set up the Synthetic VIX indicator in MT5?
Copy and paste the Synthetic VIX.mq5 or Synthetic VIX.ex5 indicator files into the MQL5 folder of the MetaTrader 5 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL5 > Indicators (paste here).
Now go to the left side of your MT5 terminal. In the Navigator, find the gauge name, right-click it, and select Attach to the chart.
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The Synthetic VIX indicator is worth adding to your trading collection but remembers to have realistic expectations. Just like any other technical analysis tool, it cannot provide accurate signals 100% of the time. Thus, this forex indicator provides false signals occasionally. Its performance will vary significantly depending on market conditions. Feel free to develop your trading system based on it.