Damiani Volatmeter
vis_atr = 13 (5–50) • vis_std = 20 (5–50) • sed_atr = 40 (10–100) • sed_std = 100 (20–200) • threshold = 1.4 (1–2) Overview
The Damiani Volatmeter, created by Damian de los Santos, is a sophisticated technical analysis tool designed to differentiate between trending and non-trending market conditions by measuring the relationship between market noise and trade-worthy volatility. This indicator goes beyond traditional volatility measures by using ATR and Standard Deviation to tease out ticker volatility, helping traders understand the ideal time to trade while avoiding choppy, directionless markets.
What makes the Damiani Volatmeter invaluable for 2025 trading is its ability to act as a master filter, telling traders when NOT to trade regardless of direction. When the noise line is above the trade signal line, it indicates market activity is too weak or unstable - red means don't trade period. When the green line (trade signal) is above the white line (noise), market conditions are favorable for trend following, empowering traders to make informed decisions and avoid unnecessary losses caused by market noise.
Interpretation & Trading Signals
Signal Interpretation:
- Green Above White: Market is trending - favorable conditions for trading
- White Above Green: Market is ranging - red line prints, avoid all trades
- Red Line Present: Don't trade regardless of long/short direction
- Green Line Active: Trade allowed in any direction with other confirmations
Trading Strategy (2025):
- Master Filter: Only take trades when volatility is high (green conditions)
- Couple with Direction: Add momentum indicators like RSI, KST for trend direction
- Scalping Without Noise: Particularly effective on major forex pairs
- Crabbing Detection: Identifies chopping/crabbing markets early
Implementation Options:
- MA Types: WMA (default), SMA, EMA, HMA, T3, ADXVMA, VOLMA
- Additional Filters: StdDev, ATR, LinReg, CCI, RSI, ROC for trend detection
- Mean Reversion: Combine with Fisher Transform or Gaussian Filter for direction
- Multi-Timeframe: Apply across different timeframes for comprehensive analysis
Example Usage
Code examples will be available once the Rust implementation is complete.