OPEN-SOURCE SCRIPT
ka66: Volatility Momentum
This is a 'monitoring' indicator to see if an instrument is viable enough to be traded, by virtue of volatility (or lack of volatility in context may lead to a break out), or may become so. It shows the following information:
Price Range (high - low) averaged across a set of bars: Useful gauging potential trading profits. This was its initial goal, to not measure bars manually!
ATR: As a comparison point for the price range above. Divergence between true range (TR) and plain price range might signal volatility changes occurring in the instrument.
Signal volatility line: a moving average of the larger of the average price range and ATR. This takes inspiration from other indicators like MACD and Stochastic, and is a way of comparing change in recent volatility --- this achieves the momentum part. The larger was chosen to keep things simple, and not have a signal line per range!
avgRange = movingAvg(high - low, avgPeriod)
atr = movingAvg(trueRange, avgPeriod)
signal = movingAvg(max(avgRange, atr), avgPeriod)
Configurable periods and averaging mechanism.
Price Range (high - low) averaged across a set of bars: Useful gauging potential trading profits. This was its initial goal, to not measure bars manually!
ATR: As a comparison point for the price range above. Divergence between true range (TR) and plain price range might signal volatility changes occurring in the instrument.
Signal volatility line: a moving average of the larger of the average price range and ATR. This takes inspiration from other indicators like MACD and Stochastic, and is a way of comparing change in recent volatility --- this achieves the momentum part. The larger was chosen to keep things simple, and not have a signal line per range!
avgRange = movingAvg(high - low, avgPeriod)
atr = movingAvg(trueRange, avgPeriod)
signal = movingAvg(max(avgRange, atr), avgPeriod)
Configurable periods and averaging mechanism.
Script open-source
In pieno spirito TradingView, l'autore di questo script lo ha pubblicato open-source, in modo che i trader possano comprenderlo e verificarlo. Un saluto all'autore! È possibile utilizzarlo gratuitamente, ma il riutilizzo di questo codice in una pubblicazione è regolato dal nostro Regolamento. Per aggiungerlo al grafico, mettilo tra i preferiti.
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Le informazioni ed i contenuti pubblicati non costituiscono in alcun modo una sollecitazione ad investire o ad operare nei mercati finanziari. Non sono inoltre fornite o supportate da TradingView. Maggiori dettagli nelle Condizioni d'uso.