Advanced Volatility Activator [AlgoFuego]

18 apr

🔵 Advanced Volatility Activator (AVA) [AlgoFuego]

The Advanced Volatility Activator (AVA) is an innovative technical analysis indicator designed to help traders identify and react to market volatility.

By blending adaptive volatility metrics with a refined moving‑average algorithm, the indicator offers traders a dynamically responsive framework for trend identification.

🔸Dynamic Volatility Analysis

The indicator examines the high and low prices of each candle to evaluate market movements.

It categorizes price movements into different states (e.g., outside bars, inside bars, higher highs, lower lows) to provide insight into market conditions, then calculates price averages for bars that make a new high or low price.

This moving average serves as a baseline for volatility adjustments, aligning the tool with well-established technical indicators.

🔸 Customizable Sensitivity

Through the [volatility sensitivity] input, users can fine‑tune how responsive the moving average is to price fluctuations.

A higher sensitivity setting makes the moving average less responsive to rapid market changes, enabling the indicator to adapt to different market environments and trading styles.

🔸Integrated Multi-Timeframe Table

A distinctive feature of this indicator is its integrated table display, which provides a summary signal across multiple time frames.

This table serves as a quick reference guide for traders to compare market trends across different time periods.

This at‑a‑glance view empowers traders to confirm trend direction from intraday to higher‑timeframe perspectives without switching charts.

🔹 How It Works

1. Initial Setup
The indicator defines two baseline values: the current high and the current low.
These serve as reference points for all subsequent price comparisons and moving‑average calculations.

2. Volatility Smoothing
The indicator calculates the smoothed volatility range using an exponential moving average (EMA) of the absolute differences between successive prices.
This helps smooth out the erratic price movements of the simple moving average and improves the measurement of volatility.

3. Trend Probability Calculation
A Simple Moving Average (SMA) of the combined high‑low series is calculated.
That SMA is then compared against the smoothed volatility range from step 2 to estimate how likely it is that a genuine trend is forming.

4. Directional Counters
Two counters: bullish and bearish, track consecutive moves up or down.
Whichever counter increases more rapidly signals the prevailing market bias.

5. Drawing the Trend Line
Finally, the code generates a trend line that dynamically adapts to real‑time volatility.
The result is a clear, responsive visual that mirrors actual market behavior.

🔹 Visual & Table Customization

Color Coding
Upward and downward trends are easily distinguished by customizable color settings, enhancing visual clarity for decision-making.

• Upward Movements
  A lighter blue hue indicates an upward trend.

• Downward Movements
  An orange hue indicates a downward trend.

Candlestick Highlighting
The indicator plots candlesticks with the same trendline color so that the chart maintains a consistent visual theme, thus reinforcing the signal's clarity.


Table Configuration and Customization
This additional layer of information helps traders compare signals between different time horizons, which is essential for a comprehensive multi-timeframe strategy.
The code supports multiple user-defined timeframes (e.g., 15, 60, 240, and 480 minutes).
For each timeframe, the indicator queries the market data to determine if the signal is Bullish, Bearish, or No signal.

Visibility and Positioning
The table can be toggled on or off via a user input. Its position on the chart is also customizable, ranging from top-right to bottom-left, allowing flexibility based on personal chart layouts.


Color Settings
The table cells are populated with both the timeframe labels and the corresponding market signal text (e.g., "Bullish", "Bearish", "No signal"). Background colors for each signal cell change dynamically depending on the current state, making it easy for traders to assess market sentiment at a glance.

Users can adjust colors for the background, borders, and text of the table itself.
Moreover, specific colors are set to denote bullish signals (blue), bearish signals (orange), or no signal (default dark theme).

🔹 How to use

Before entering long trades, ensure that prices are above the Advanced Volatility Activator Line and the line indicates an upward movement.

🔹 Practical Benefits

Enhanced Market Awareness
By highlighting periods of low volatility, the indicator can serve as an early warning system for potential market reversals or breakouts.
The supplementary table offers a high-level overview of these signals across multiple timeframes, which aids in confirming trends or reversals.

Customizable and Versatile
Both the indicator and the table are highly customizable. Traders can fine-tune the sensitivity, adjust periods for the moving average, select color schemes, and choose their preferred timeframes, all allowing for a tool that adapts to various trading styles and market conditions.

Intuitive Visualization
The clearly defined color-coded trendline provides an immediate visual cue, making it easier for traders to interpret market trends at a glance.
Whether you are a short-term trader needing precise entry and exit points or a multi-timeframe analyst looking for broader trend confirmation, this indicator provides valuable insights on both a micro- and macro-level.

🔹 Disclosure

While this indicator is useful and ideally suited for active traders who require precise, customizable signals to navigate rapidly changing markets, it's critical to understand that past performance is not necessarily indicative of future results, and there are many more factors that go into being a profitable trader.

19 apr

Note di rilascio

Added alert functionality, enhanced UI/UX for a smoother experience, and expanded customization options.

Added the ability to display the Advanced Volatility Activator from different timeframes without switching charts, supporting multi-timeframe strategies.

22 apr

Note di rilascio

Rewriting the code from scratch to provide independent control over each component without affecting the underlying logic.
This update introduces additional features for table display and enhances the multi-timeframe viewing experience.

6 giorni fa

Note di rilascio

Display Close Above/Below AVA Signals Across Multiple Timeframes
The ability to display close above or below the Advanced Volatility Activator (AVA) signals from different timeframes without switching charts has been added. This update supports multi-timeframe strategies.

Table Customization Options
Customization options have been added for the table, allowing users to have full control over how the signals are displayed, including color and display adjustments for each timeframe.

Close Above/Below AVA Alerts
Alerts for closing above or below the AVA line have been added, making it easier to track these signals accurately and efficiently.