Silence Indicator: Normalizing Market Activity and Volatility

Summary

The Silence indicator presents market activity using two plotted measures. Its average line represents aggressiveness as a percentage based on the rate of price change, while a red line represents volatility as a percentage of a corridor value. The document also frames the indicator as an example of normalizing a measure that could otherwise vary over an unlimited range, transforming it into a bounded scale from zero to one hundred.

This bounded representation can make changing indicator values easier to compare visually, but the description does not give the formulas, input settings, or rules for interpreting particular readings. It supplies no backtest, signal thresholds, or evidence that the display forecasts price direction. The stated history says the indicator was first implemented in MQL4 and published in 2009; that provenance does not establish its current usefulness. The material therefore explains a visualization and normalization concept, rather than a complete trading strategy.

Key ideas

• The indicator displays price-change aggressiveness and volatility as percentages.
• Its average line represents aggressiveness based on the rate of price change.
• Its red line represents volatility relative to a corridor value.
• The example maps an otherwise unbounded indicator into a zero-to-one-hundred range.
• The document provides no formulas or tested trading rules.

Tags

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