Adaptive Volatility Analysis with Short and Long ATR Averages

Summary

Adaptive Volatility Analysis (AVA) is an indicator intended to measure whether market volatility is increasing or easing. It compares a short-period exponential moving average of ATR with a longer-period exponential moving average, producing a relative measure that adjusts as market conditions change. The document says the tool was developed to support other indicators and Expert Advisors and was primarily designed for use by genetic algorithms.

An AVA value that rises signals increasing volatility, while a falling value suggests calmer conditions. The indicator is displayed in a separate chart panel. The document gives the core calculation and basic interpretation, but does not specify the averaging periods, entry or exit rules, validation results, or how the signal should be calibrated across instruments and timeframes. It therefore describes a volatility measurement concept rather than a tested standalone trading strategy.

Key ideas

• AVA compares short and long exponential moving averages of ATR.
• A rising AVA reading indicates increasing volatility, while a falling reading indicates reduced volatility.
• The indicator is intended to adapt to current market dynamics and support other indicators or Expert Advisors.
• The document provides no performance evidence or complete trading rules.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.