Silence Indicator for Normalized Price Aggressiveness and Volatility

Summary

The Silence indicator plots two measures in a separate chart window: price aggressiveness, represented by the rate of price change, and volatility. Its inputs are a calculation period, an interpolation period, and the applied price. The calculation first takes a simple moving average of absolute changes between the applied price and its previous value, then scales that measure by the instrument’s point size. Volatility is derived from the squared deviation of price from its moving average, divided by the calculation period, and square-rooted.

Both measures are then interpolated using their respective minimum and maximum values over the interpolation window. The description supplies formulas but no chart examples, trading rules, performance evidence, or guidance for interpreting the plotted lines. It therefore explains how the indicator is constructed, but does not establish that either measure predicts price direction or improves trading results. The results may also depend on the selected price, instrument, and lookback settings.

Key ideas

• The indicator displays separate measures of price aggressiveness and volatility.
• Aggressiveness starts from average absolute price changes and is scaled by point size.
• Volatility is based on price deviations from its moving average.
• Each measure is normalized using its range over an interpolation period.
• The document gives no trading signals or evidence of predictive performance.

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