The volatility indicator is another which appears simple, yet is one which is immensley powerful when the concepts of volatility are truly understood and in particular those market participants who thrive on it! Volatility is generally associated with news or data releases, and as such the volatility indicator is triggered as soon as the price action moves outside the average true range. In other words when price action moves away from the ‘normal’ of what is generally expected in that timeframe and for that currency pair. This is also the time the market makers and insiders are at their most active, either particpating in genunine moves or trapping traders into weak positions which is often why the price action then reverts inside the spread of the candle once the indicator is triggered.