The attachment below shows a picture of the momentum of volatility and below that it shows the RSI of volatility. I ahve described volatility as the differeance between the opn and the close for the previous XX number of bars. I use the indciators as follows on Daily bars to give me an idea of when to expect a alrge range day compared to the last XX number of bars (between the open and the close)

When using a volatility breakout system we are always buying above the open and sellingshort below the close so it is important to trade on days when there is a strong likelihood of follow through and large ranges. Although this is not perfect(what is) when the RSI of volatility is below the oversold level it signifies that we can expect a large range bar within the next 2-3 bars, but usually tommorrow. So it tells us in advance when to expect a large range bar. Following this I ahve run a momentum indicator measuring the rate of change of the RSI of Volatility. This tells me when we are in the cycle of range expnasion or if we are in a cycle of range contraction. When we are in a range expanison cycle we should be using intraday trend following techiques. Int he range contracion cycle we should be using profit targets rather then trend following techniques as follow through is likely to be limited.

The code for these indicator is below. I am at work so only have 2000i, but code should work for Version 8 as well.

Cheers
Zipzap