Damiani Volatmeter Indicator: Trade Or Stand Aside Today

Written by Dominic Walsh · Published 6 Aug 2026 · Last updated 9 Sep 2026

The damiani volatmeter indicator was built to answer one question. Is there enough movement to bother? It holds fast volatility against slow. The line turns green only when the ratio clears a moving level.

This build ships as a compiled .ex4 for MT4 and .ex5 for MT5; the screenshots below come from EURUSD H1.

Platforms	MT4 (.ex4) + MT5 (.ex5)
Chart window	Separate window (levels 1)
Plots	3: Volatmeter – TRADE, Volatmeter – STAND ASIDE, Anti-threshold
Alerts	popup, push notification, email, sound
Inputs	27

What the Damiani Volatmeter Indicator draws on the chart

`Volatmeter – TRADE` runs spring green while the gate is open.

`Volatmeter – STAND ASIDE` runs slate gray while it is shut.

An orange red `Anti-threshold` line carries the level the reading must beat.

A panel reports the current state and how often it has been open lately.

• Volatmeter – TRADE: line, spring green, width 2
• Volatmeter – STAND ASIDE: line, slate gray, width 2
• Anti-threshold: line, orange red, width 1

How the Damiani Volatmeter Indicator calculates its values

Two speeds of volatility

`InpViscosity` `7` gives the fast window. `InpSedimentation` `50` gives the slow one. A range measure and a spread measure run at each speed. That is four readings per bar.

The threshold moves

`InpThreshold` `1.40` is a start point, not a fixed line. The ratio of fast to slow spread gets taken off it. So the bar to clear rises when readings scatter.

Lag suppression is optional

`InpLagSupressor` `true` folds in the gap between the reading one bar back and three bars back. `InpLagK` `0.50` weights it. Switch it off for a rawer, later signal.

How to read the signals

Green does not mean buy. It means a trend tool has a chance.

Grey stretches are where most systems bleed.

A share figure on the panel covers `InpRegimeWindow` `100` bars.

A reference sits at 1.0 in the pane.

Alert channels in this build: popup, push notification, email and sound, one message per closed bar.

`EnableAlerts` is the master switch and ships true with `EnablePopup`. `EnablePushNotify` targets the MetaQuotes ID. `EnableEmail` needs mail set up in the terminal options. `EnableSound` plays `SoundFile`. One flip reports per bar.

Every Damiani Volatmeter Indicator input

Core settings

Setting	What it does	Default
InpViscosity	Viscosity – FAST ATR and StdDev window (published 7). Fast window for both measures, default `7`.	7
InpSedimentation	Sedimentation – SLOW ATR and StdDev window (published 50). Slow window for the same pair, default `50`.	50
InpThreshold	Threshold level the deviation ratio is subtracted from. Start level the ratio comes off, default `1.40`.	1.40
InpLagSupressor	Lag suppressor – enables the vol[1] – vol[3] correction. Apply the lag correction, default `true`.	on
InpLagK	Weight applied to the lag suppressor correction term. Weight given to that correction, default `0.50`.	0.50
InpRegimeWindow	Bars behind the “share of time tradable” statistic. Bars behind the share figure, default `100`.	100
InpX	Panel X offset (px).	14
InpY	Panel Y offset (px) – clears the one-click panel.	120
InpPriceScalePx	Right margin owned by the price scale, in pixels.	62

Display settings

Setting	What it does	Default
InpMaxBars	Chart bars the volatmeter is rebuilt over. Chart bars the reading covers, default `2000`.	2000
InpTradeColor	Volatmeter colour while the gate says TRADE.	spring green
InpQuietColor	Volatmeter colour while the gate says STAND ASIDE.	RGB 110,120,140
InpThreshColor	Moving anti-threshold line colour.	orange red
InpLineWidth	Volatmeter line width.	2
InpShowPanel	Show the volatmeter readout panel. Show the state readout, default `true`.	on
InpCorner	Panel corner (0=UL 1=UR 2=LL 3=LR).	0
InpFontSize	Panel font size.	9
InpFont	Panel font (monospaced keeps columns square).	Consolas
InpPanelBg	Panel background colour.	RGB 10,16,30
InpBorderColor	Panel border colour.	medium orchid
InpTextColor	Panel body text colour.	gainsboro

Alert settings

Setting	What it does	Default
EnableAlerts	Master alert switch. One control over the gate alerts, default `true`.	on
EnablePopup	Terminal popup alert. Dialog box when the gate flips, default `true`.	on
EnablePushNotify	Push notification to the MetaQuotes ID.	off
EnableEmail	E-mail alert (Tools > Options > Email).	off
EnableSound	Play a sound file when the gate flips.	off
SoundFile	Sound file in the terminal Sounds folder.	alert.wav

Settings that fit your chart

A regime filter suits any chart with history. EURUSD H1 is the reference chart. The gate opens for a few hours at a time there. On M5 it flickers. Daily bars give long, clear stretches.

When the Damiani Volatmeter Indicator fails

The tool says nothing about direction, so it needs a partner.

Windows of 7 and 50 suit some instruments better than others.

A gate that opens late still opens after the move began.

Copy the compiled Damiani Volatmeter Indicator file into your MQL4/Indicators folder, and the MT5 build into MQL5/Indicators, then restart the terminal and drag it onto a chart. The step-by-step guide with screenshots is at how to install MT4 and MT5 indicators.

Download the Damiani Volatmeter Indicator for MT4 and MT5

The zip holds the compiled Damiani Volatmeter Indicator build for MT4 and MT5, plus a short README. Compiled files only, no source. Enter your email below and the download link arrives in your inbox.

FAQ

What do InpViscosity 7 and InpSedimentation 50 mean?

They are the fast and slow windows, named after how quickly sediment settles. Seven bars reacts at once. Fifty describes the background. Their ratio is the whole reading.

Why does InpThreshold 1.40 move?

A fixed level would misjudge a market whose spread has changed. The ratio of fast to slow spread gets taken off 1.40. So the bar to clear rises exactly when readings scatter.

What does InpLagSupressor actually correct?

It folds in the gap between the reading one bar back and three bars back, weighted by `InpLagK`. That pulls the turn a little earlier. The line gets noisier in exchange.

Does a green Volatmeter mean go long?

No. It only says conditions carry enough movement for a trend method to have a chance. Which way to trade must come from something else.

Are results guaranteed?

No. Trading involves risk. Results are not guaranteed; past performance is not indicative of future results. Use the Damiani Volatmeter Indicator as one input. Always backtest before trading live.