TSI in Dynamic Zones with Divergence and Pivot PointsTrue Strength Index , or TSI is considered a "leading indicator" - in contrast to a "lagging indicator" just as Moving Averages it does not show a confirmation what already happened, but it shows what can happen in the future. For example: The chart is climbing while the TSI oscillator is slowly declining, gets weaker and weaker, maybe even prints bearish divergences? That means that a reversal might be occurring soon. Leading indicators are best paired with Stop and Resistance Lines, General Trendlines , Fib Retracements etc. Your chart is approaching a very important Resistance Trendline but the TSI shows a very positive signal? That means there is a high probability that the Resistance is going to be pushed through and becomes Support in the future.
What are those circles?
-These are Divergences. Red for Regular-Bearish. Orange for Hidden-Bearish. Green for Regular-Bullish. Aqua for Hidden-Bullish.
What are those triangles?
- These are Pivots . They show when the TSI oscillator might reverse, this is important to know because many times the price action follows this move.
What are these blue or orange areas?
- Those are dynamic zones. For the analysis of the TSI its important to know if the indicator is in a state of oversold or overbought to filter out ranging price movement. Normally those zones are static, in this version of the TSI oscillator dynamic zones were added to show a dynamic calculation whether the TSI oscillator is oversold, overbought or ranging.
Please keep in mind that this indicator is a tool and not a strategy, do not blindly trade signals, do your own research first! Use this indicator in conjunction with other indicators to get multiple confirmations.
Volatilityindicator
Bollinger Bands Fibonacci Ratios StrategyHello, everyone!
We have just released an innovative strategy for TradingView. It allows you to identify price pivot points and volatility.
This strategy is:
User-friendly
Configurable
Equipped with Bollinger Bands and smoothed ATR to measure volatility
Features
Thanks to the BB Fibo strategy, you can:
Trade stocks and commodities.
Identify price pivot points.
Choose any band for trading Long or Short positions.
Swap upper and lower bands applying Use Reverse Buy/Sell parameters.
Note! The upper bands are for the Long position. The lower bands are for the Short positions.
Parameters
We have equipped our strategy with more than 14 additional parameters. So, you can configure the EA according to your needs!
Inputs:
Length
Source: Open, High, Low, Close, HL2, HLC3, OHLC4
Offset
Fibonacci Ratio 1 — a Fibonacci factor for the 1st upper and lower indicator lines calculating.
Fibonacci Ratio 2 — a Fibonacci factor for the 2nd upper and lower indicator lines calculating.
Fibonacci Ratio 3 — a Fibonacci factor for the 3d upper and lower indicator lines calculating.
Use Reverse Buy — the strategy will use lower Bollinger bands instead of upper ones.
Fibonacci Buy — band selection for opening Long positions conditions.
Use Reverse Sell — the strategy will use upper Bollinger bands instead of lower ones.
Fibonacci Sell — band selection for opening Short positions conditions.
Style:
Basis — baseline color and style settings.
Upper 3 — the 3d upper line color and style.
Upper 2 — the 2nd upper line color and style.
Upper 1 — the 1st upper line color and style.
Lower 1 — the 1st lower line color and style.
Lower 2 — the 2nd lower line color and style.
Lower 3 — the 3d upper line color and style.
Background — the background color within the 3d upper and 3d lower indicator band.
Precision — the number of decimals for BB Fibo values.
Note! Try BB Fibo on your demo account first before going live.
Sigma Spikes [CC]Sigma Spikes were created by Adam Grimes and this is one of the best volatility indicators out there. This indicator not only gives you positive or negative volatility but with my version I can identify any sudden changes from the underlying trend. Buy when the line turns green and sell when it turns red.
Let me know if there were any other indicators you wanted to see me publish!
Bollinger Band Width PercentileIntroducing the Bollinger Band Width Percentile
Definitions :
Bollinger Band Width Percentile is derived from the Bollinger Band Width indicator.
It shows the percentage of bars over a specified lookback period that the Bollinger Band Width was less than the current Bollinger Band Width.
Bollinger Band Width is derived from the Bollinger Bands® indicator.
It quantitatively measures the width between the Upper and Lower Bands of the Bollinger Bands.
Bollinger Bands® is a volatility-based indicator.
It consists of three lines which are plotted in relation to a security's price.
The Middle Line is typically a Simple Moving Average.
The Upper and Lower Bands are typically 2 standard deviations above, and below the SMA (Middle Line).
Volatility is a statistical measure of the dispersion of returns for a given security or market index, measured by the standard deviation of logarithmic returns.
The Broad Concept :
Quoting Tradingview specifically for commonly noted limitations of the BBW indicator which I have based this indicator on....
“ Bollinger Bands Width (BBW) outputs a Percentage Difference between the Upper Band and the Lower Band.
This value is used to define the narrowness of the bands.
What needs to be understood however is that a trader cannot simply look at the BBW value and determine if the Band is truly narrow or not.
The significance of an instruments relative narrowness changes depending on the instrument or security in question.
What is considered narrow for one security may not be for another.
What is considered narrow for one security may even change within the scope of the same security depending on the timeframe.
In order to accurately gauge the significance of a narrowing of the bands, a technical analyst will need to research past BBW fluctuations and price performance to increase trading accuracy. ”
Here I present the Bollinger Band Width Percentile as a refinement of the BBW to somewhat overcome the limitations cited above.
Much of the work researching past BBW fluctuations, and making relative comparisons is done naturally by calculating the Bollinger Band Width Percentile.
This calculation also means that it can be read in a similar fashion across assets, greatly simplifying the interpretation of it.
Plotted Components of the Bollinger Band Width Percentile indicator :
Scale High
Mid Line
Scale Low
BBWP plot
Moving Average 1
Moving Average 2
Extreme High Alert
Extreme Low Alert
Bollinger Band Width Percentile Properties:
BBWP Length
The time period to be used in calculating the Moving average which creates the Basis for the BBW component of the BBWP.
Basis Type
The type of moving average to be used as the Basis for the BBW component of the BBWP.
BBWP Lookback
The lookback period to be used in calculating the BBWP itself.
BBWP Plot settings
The BBWP plot settings give a choice between a user defined solid color, and a choice of "Blue Green Red", or "Blue Red" spectrum palettes.
Moving Averages
Has 2 Optional User definable and adjustable moving averages of the BBWP.
Visual Alerts
Optional User adjustable High and low Signal columns.
How to read the BBWP :
A BBWP read of 95 % ... means that the current BBW level is greater than 95% of the lookback period.
A BBWP read of 5 % .... means that the current BBW level is lower than 95% of the lookback period.
Proposed interpretations :
When the BBWP gets above 90 % and particularly when it hits 100% ... this can be a signal that volatility is reaching a maximum and that a macro High or Low is about to be set.
When the BBWP gets below 10 % and particularly when it hits 0% ...... this can be a signal that volatility is reaching a minimum and that there could be a violent range breakout into a trending move.
When the BBWP hits a low level < 5 % and then gets above its moving average ...... this can be an early signal that a consolidation phase is ending and a trending move is beginning.
When the BBWP hits a high level > 95 % and then falls below its moving average ... this can be an early signal that a trending move is ending and a consolidation phase is beginning.
Essential knowledge :
The BBWP was designed with the daily timeframe in mind, but technical analysists may find use for it on other time frames also.
High and Low BBWP readings do not entail any direction bias.
Deeper Concepts :
In finance, “mean reversion” is the assumption that a financial instrument's price will tend to move towards the average price over time.
If we apply that same logic to volatility as represented here by the Bollinger band width percentile, the assumption is that the Bollinger band width percentile will tend to contract from extreme highs, and expand from extreme lows over time corresponding to repeated phases of contraction and expansion of volatility.
It is clear that for most assets there are periods of directional trending behavior followed by periods of “consolidation” ( trading sideways in a range ).
This often ends with a tightening range under reducing volume and volatility ( popularly known as “the squeeze” ).
The squeeze typically ends with a “breakout” from the range characterized by a rapid increase in volume, and volatility when price action again trends directionally, and the cycle repeats.
Typical Use Cases :
The Bollinger Band Width Percentile may be especially useful for Options traders, as it can provide a bias for when Options are relatively expensive, or inexpensive from a Volatility (Vega) perspective.
When the Bollinger Band Width Percentile is relatively high ( 85 percentile or above ) it may be more advantageous to be a net seller of Vega.
When the Bollinger Band Width Percentile is relatively low ( 15 percentile or below ) it may be advantageous to be net long Vega.
Here we examine a number of actionable signals on BTCUSD daily timeframe using the BBWP and a momentum oscillator ( using the TSI here but can equally be used with Bollinger bands, moving averages, or the traders preferred momentum oscillator ).
In this first case we will examine how a spot trader and an options trader could each use a low BBWP read to alert them to a good potential trade setup.
note: using a period of 30 for both the Bollinger bands and the BBWP period ( approximately a month ) and a BBWP lookback of 350 ( approximately a year )
As we see the Bollinger Bands have gradually contracted while price action trended down and the BBWP also fell consistently while below its moving average ( denoting falling volatility ) down to an extremely low level <5% until it broke above its moving average along with a break of range to the upside ( signaling the end of the consolidation at a low level and the beginning of a new trending move to the upside with expanding volatility).
In this next case we will continue to follow the price action presuming that the traders have taken or locked in profit at reasonable take profit levels from the previous trade setup.
Here we see the contraction of the Bollinger bands, and the BBWP alongside price action breaking below the BB Basis giving a warning that the trending move to the upside is likely over.
We then see the BBWP rising and getting above its moving average while price action fails to get above the BB Basis, likewise the TSI fails to get above its signal line and actually crosses below its zeroline.
The trader would normally take this as a signal that the next trending move could be to the downside.
The next trending move turns out to be a dramatic downside move which causes the BBWP to hit 100% signaling that volatility is likely to hit a maximum giving good opportunities for profitable trades to the skilled trader as outlined.
Limitations :
Here we will look at 2 cases where blindly taking BBWP signals could cause the trader to take a failed trade.
In this first example we will look at blindly taking a low volatility options trade
Low Volatility and corresponding low BBWP levels do not automatically mean there has to be expansion immediately, these periods of extreme low volatility can go on for quite some time.
In this second example we will look at blindly taking a high volatility spot short trade
High volatility and corresponding high BBWP levels do not automatically mean there has to be a macro high and contraction of volatility immediately, these periods of extreme high volatility can also go on for quite some time, hence the famous saying "The trend is your friend until the end of the trend" and lesser well known, but equally valid saying "never try to short the top of a parabolic blow off top"
Markets are variable and past performance is no guarantee of future results, this is not financial advice, I am not a financial advisor.
Final thoughts
The BBWP is an improvement over the BBW in my opinion, and is a novel, and useful addition to a Technical Analysts toolkit.
It is not a standalone indicator and is meant to be used in conjunction with other tools for direction bias, and Good Risk Management to base sound trades off.
John Bollinger has suggested using Bolliger bands, and its related indicators with two or three other non-correlated indicators that provide more direct market signals.
He believes it is crucial to use indicators based on different types of data.
Some of his favored technical techniques are moving average divergence/convergence (MACD), on-balance volume and relative strength index (RSI).
Thanks
Massive respect to John Bollinger, long-time technician of the markets, and legendary creator of both the Bollinger Bands® in the 1980´s, and the Bollinger band Width indicator in 2010 which this indicator is based on.
His work continues to inspire, decades after he brought the original Bollinger Bands to the market.
Much respect also to Eric Crown who gave me the fundamental knowledge of Technical Analysis, and Options trading.
Candle Percent Volatility by AllenlkThis indicator gives you the percentage movement of each candle. Measurements are taken between the candle High point and Low point, and also between the Open and Close and calculated in percent %. From there it smooths out the data with a moving average. This gives you an idea of how much volatility is within each candle given the time resolution of the chart.
I like to use this information as a way to turn off a strategy, or select a proper time resolution for a strategy. If each candle has less than 2.5% Volatility most strategies will typically buy and sell rapidly at prices that are too close together, potentially losing money. During those times it seems best to either temporarily turn off the strategy, change the time resolution or switch to another strategy.
Linear Regression Channel / Curve / Slope by DGTTʜᴇ Lɪɴᴇᴀʀ Rᴇɢʀᴇꜱꜱɪᴏɴ Cʜᴀɴɴᴇʟꜱ
Linear Regression Channels are useful measure for technical and quantitative analysis in financial markets that help identifying trends and trend direction. The use of standard deviation gives traders ideas as to when prices are becoming overbought or oversold relative to the long term trend
The basis of a linear regression channel
Linear Regression Line – is a line drawn according to the least-squares statistical technique which produces a best-fit line that cuts through the middle of price action, a line that best fits all the data points of interest. The resulting fitted model can be used to summarize the data, to predict unobserved values from the same system. Linear Regression Line then present basis for the channel calculations
The linear regression channel
2. Upper Channel Line – A line that runs parallel to the Linear Regression Line and is usually one to two standard deviations above the Linear Regression Line.
3. Lower Channel Line – This line runs parallel to the Linear Regression Line and is usually one to two standard deviations below the Linear Regression Line.
Unlike Fibonacci Channels and Andrew’s Pitchfork, Linear Regression Channels are calculated using statistical methods, both for the regression line (as expressed above) and deviation channels. Upper and Lower channel lines are presenting the idea of bell curve method, also known as a normal distribution and are calculated using standard deviation function.
A standard deviation include 68% of the data points, two standard deviations include approximately 95% of the data points and any data point that appears outside two standard deviations is very rare.
It is often assumed that the data points will move back toward the average, or regress and channels would allow us to see when a security is overbought or oversold and ready to revert to the mean
please note : Over time, the price will move up and down, and the linear regression channel will experience changes as old prices fall off and new prices appear
█ Linear Regression Study Features
Linear Regression Channel
- Linear regression line as basis
- Customizable multiple channels based on Standard Deviation
- ALERTs for the channel levels
Linear Regression Curve
- Linear regression curve as basis
- Optional : Bands based on Standard Deviation or Volatility (ATR). Bands are applied with fixed levels 1, 2 and 3 times StdDev or ATR away from the curve
Linear Regression Slope
- Optional : Up/Down slope arrows for a used defined period
█ Volume / Volatility Add-Ons
High Volatile Bar Indication
Volume Spike Bar Indication
Volume Weighted Colored Bars
FXBABATRADING ~ ZRANGE IndicatorOur ZRange indicator is an outstanding indicator to measure Volatility , that is, how much price has deviated from the mean. This indicator is part of a bundle of 5 indicators which we call the ZScore Indicator Suite all based on the ZScore function of statistics.
In this particular mode (ZRange) you can see whether the actual Standard Deviation is above or below the mean average of the Standard Deviation (period of your choice) determined by a + or - value. The value itself represents a Standard Deviation multiplier. A reading below ZERO simulates the Bollinger Band Squeeze, a time of price consolidation that is bound to break. Ideally you want to enter trades when the value of ZRange is increasing and above the signal line.
Alerts are provided for when volatility is increasing and or decreasing. Alerts can be turned off in settings.
Strategies where price is trending sideways will benefit when the ZRange is decreasing as it signifies price entering consolidation.
Each indicator in the ZScore Suite has a particular function:
ZClassic: Measures the position of Price in relation to a set average in units of standard deviation.
ZRange: Measures the position of the Standard Deviation itself in relation to a set average, in units of standard deviation.
ZVolumeDelta: Measures the position of Volume Delta in relation to a set average, in units of standard deviation.
ZTrend: Its a custom mathematical function that allows to measure the strength and direction of the Trend in reference to a set average.
Implied volatility indicator - Bouhmidi-Bands Volatility trading with the Bouhmidi-Bands
Most known indicators such as Bollinger Bands or Keltner Channel focus only on historical volatility. Bouhmidi bands follow a different approach, namely an indicator based on implied volatility.
Style tags: Implied Volatility, Volatility Trading, Trend Analysis
Asset class: Equities, Futures, Commodities
Dataset: Minutes / Hours
Description
The most famous volatility indicators such as Bollinger Bands , Keltner Channel , Donchian Channels , etc. all use the historical volatility of the underlying asset. However, volatility is determined not only by historical volatility but also by implied volatility. The additional analysis of implied volatility sharpens the view and improves trading.
The Bouhmidi Bands ® were developed by myself and are based on implied volatility. They calculate an expected daily bandwidth under the assumption of normally distributed returns. The bandwidth is based on 1σ or 2σ. This means that an underlying closes with a probability of 68% or 95% within the expected Bouhmidi bandwidth at the end of the day. Check the historical development. The track record over the past 20 years shows a strong robustness of the indicator.
Benefits using Bouhmidi bands
- The Bouhmidi bands can be used to identify and filter "invisible" resistance and support that cannot be detected with simple chart analysis.
- The Bouhmidi bands can be used for different trading approaches. For example, they are suitable for mean reversion and volatility breakouts.
- If you combine the Bouhmidi bands with e.g. Keltner channel or Bollinger bands, you have the historical and implied volatility in one view in your tradingview chart.
Which underlyings can I trade with the Bouhmidi bands?
To determine the Bouhmidi bands, we need the underlying and the corresponding implied volatility index:
- S&P 500 - VIX
- DAX - VDAX-NEW
- Dow Jones - VXD
- Nasdaq 100 - VXN
- Gold - GVZ
- WTI - OVX
- Apple - VXAPL
- Amazon - VXAZN
- Google - VXGOG
- IBM - VXIBM
Relative Volatility OscillatorRelative Volatility Oscillator is a volatility based oscillator and works very well on Lower Time Frames on volatile assets. It uses one of five periods (34,55,89,144,233) to calculate relative volatility of the current bar with the volatility trend of one of the 5 periods from the settings, using percentile rank.
Features of Relative Volatility Oscillator
Choice of one of five periods for the Relative Volatility Oscillator plot.
SOS Triangles to indicate Bull/Bear Exhaustion.
Option to plot Volatility Zones. Oscillator Values between -5 and 5 will be plotted using exhaustion colours and can be used to monitor trades closely for trend reversals.
Choice of 3 colour themes including option to plot trend based coloured price bars.
Moving Average Gap AnalyzerExtremely simple algorithm in order to calculate the gap between 2 simple moving averages. Analyzing perspective defines the line of color as white, green or red. This is done by checking sources of both moving averages and evaluate their past values with the mutual length respectively. Analysis is done by scoring the movements of sources.
What to expect?
- Higher the gap, higher the volatility.
- If the analysis line is green sources have been raising (most likely bull market), if the analysis line is white the market is mostly likely close to horizontal, if the analysis line is red, sources have been decreasing gradually (most likely bear market).
ps. Genuine indicator idea of me. This indicator is not a product or an idea of any group I work with. Completely clear of all types of IP.
TradeChartist MTF Supertrend Pro™TradeChartist MTF SuperTrend Pro is the Multi Time-Frame version (using timeframe multiplier) of classic Volatility Stop or SuperTrend (Stop and Reverse indicator using multiple of Average True Range of lookback period trailing behind the price acting as both trend reversal signifier and StopLoss trigger at the same time ).
What does ™TradeChartist MTF SuperTrend Pro include?
Multi Time-Frame option using Time-Frame Multiplier to plot Higher Time Frame SuperTrend plot on Lower Time-Frame chart.
Auto-fibs - 2 types (1. Retracement from last significant high/low to previous significant low/high, 2. Retracement from Current High/Low to previous significant Low/High).
Trend identifying color bars.
Trend identifying Background colour.
Option to detect bars where Profit Taking is recommended using $ sign.
How to create Alerts for ™TradeChartist MTF SuperTrend Pro Long and Short Entries?
Alerts can be created for Long or Short entries using Once Per Bar as BUY and SELL labels appear with entries only on confirmation after bar close.
Does the indicator include Stop Loss and Take Profit plots?
This script doesn't have Stop Loss and Take Profit plots, but it can be connected to TradeChartist Plug and Trade as Non-Oscillatory signal to generate Automatic Targets, user set StopLoss and Take Profit plots and to create all types of alerts too.
Does this indicator repaint?
No. This script doesn't repaint as it confirms its signals only after close above/below SuperTrend plot and also uses security function to call higher time-frame values in the right way to avoid repainting. This can be verified using Bar Replay to check if the plots and fills stay in the same bar in real time as the Bar Replay.
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Tip 1: Using 1.618 as Timeframe Multiplier results in lucrative trades on most timeframes with ATR multiplier 1.618, 2.618 or 3.618. (Best Practice: Test with various values first on asset using Paper Trades before trading with real money)
Tip 2: Using bars, candles with no borders or Hollow Candles results in clear trend spotting with Bar color option enabled in settings.
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Chart below shows Performance of MTF SuperTrend Pro connected to Plug and Trade using Default settings.
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This is not a free to use indicator. Get in touch with me (PM me directly if you would like trial access to test the indicator)
Premium Scripts - Trial access and Information
Trial access offered on all Premium scripts.
PM me directly to request trial access to the scripts or for more information.
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Cross Asset VolatilityThis script brings together a number of volatility indexes from the CBOE in one space making it easier to use rather than adding a number of different securities to one chart. One could create a template with these securities attached, but sometimes, you don't want to switch charts, for whatever reason, and adding an indicator for is quick and simple.
One note is that due some securities exhibit much larger volatility than others (i.e. oil vs bonds) and it can be difficult to see clearly those securities whose volatilities are low, and hence we have added the ability to calculate the values as a Log value to make the indicator more readable. Another way to do this is to change the Y-axis on the chart to Logarithmic while leaving the indicator at its default settings (i.e. the checkbox for using Log calculations remains unchecked).
H/V/Q Volatility Index v2.0This is a standalone version of the volatility calculation used in QuantRsi. It is a relatively complex volatility-specific filtering calculation designed to give deeper insight into volatility trends for any asset class.
Use with Log scaling on the indicator's value scalar.
This tool offers an alternative model for volatility calculation. Experience using this tool proves that it extends the efficacy of volatility prediction techniques, and allows deeper technical analysis within volatility moves.
Use alongside conventional volatility indices to find opportunities within option chains to long or short volatility when HVQ provides evidence for volatility reversal that other options value models have not priced in.
Use as part of a predictive based risk management strategy.
Use alongside QuantRsi and HeffaeClouds as a complete trading suite, sans volume analysis, and gain insight not offered by any other indicator set.
SETTINGS:
TimeFrame settings:
Chart/Custom timeframe inputs are carried over from HeffaeClouds and QuantRsi indicators. Allows you to assign any non-chart timeframe to the indicator:
"ChartTF" follows your chart's selected resolution / TimeFrame
"Non-Chart TimeFrame" is an integer for your custom TimeFrame, the setting below:
"Non-Chart TimeFrame" selects "Minutes, Hours, Days" that corresponds to the above setting for a custom TimeFrame.
More Settings:
"Invert Output switch" will invert the volatility chart scale. Useful for visualizing some trends on assets that regularly correlate large volatility spikes with disorderly selloffs.
"Show High/Low Volt range" switch (experimental) shows the high/low extremes of alternate volatility window calculations. There is insight to be gained from large differences v.s. all ranges trending near the same values.
"Relative value switch" (experimental) divides the HVQ values by the hl2 candle price, per candle. This is a unique way to filter the output, visualize the volatility value per asset value.
"Range Multiplier" adjusts the average window length HVQ uses for calculations. This has been finely tuned so that the value of "10" corresponds to the best average fitting of all assets and timeframes. In most situations TimeFrame should be used to alter the real window periods and this should be left at default. Instead you can change this to find better fitting if you'd like.
If there is a feature you would like, question answered, or a bug to report, visit the TradingView SNOW_CITY public chat-room; link in my signature
Use the pastebin link below for indicator access information and pricing
Volatility (Body and Weighted Shadow)- Volatility Indicator
- Replacement for ATR
- As each pair holds a different level of volatility, a stop loss can be set using this indicator rather than via a ratio 2:1, etc. e.g. 2 X Volatility Value = S/L...
- This indicator averages the bodies of candlesticks over a default length of 14 periods. It also considers the length of shadows via a weighted average. This is done as it is assumed that financial institutions tend to move price to levels that do not hold (shadows). Therefore, wick lengths are less significant than the candlestick bodies, so they are weighted to hold less value.
Volatility Index (Expo)Volatility Index (Expo)
DESCRIPTION
Volatility can be referred to many things, but a commonly accepted definition of volatility is that it’s a measure of the risk or uncertainty in the market. Higher volatility is equal to more risk in the market. A simple way of describing it is that when volatility is high, the value of the market can be spread out over a larger range of values. This means that the price of the market can change dramatically over a short time period in either direction. A lower volatility means that a market's value does not fluctuate dramatically, and tends to be steadier. However, how to calculate and to apply volatility has been widely debated and many different calculations have been used. Volatility Index is a must for a professional trader in today's volatile markets.
This Volatility Index is derived from research within Volatility.
HOW TO USE
1. Use the indicator to detect low- respectively high volatility.
2. Enter the market when the volatility is low, and exit the market when the volatility is high.
3. Use the indicator to identify when the volatility peaks. Can indicate that the market will shift or can be good areas to take profits.
Trend
When the market is in a positive trend, the volatility is low and stable. The opposite happens when the market is in a negative trend, the volatility is high and price moves boldly.
As a rule ,when volatility increases unusually(abnormal) in relation to previous periods something is happening in the market, then wait until the volatility peaks or when the indicator does not make any new highs (the indicator becomes flat), and in conjunction with that the trending price action doesn’t make any new lows or respectively highs. When this happens there is a high probability that the market will take a temporary turn.
Positive volatility refers to when the volatility index increases with green candlesticks this means that the buyers are more aggressive than sellers. (Can indicate a trend change)
Negative volatility refers to when the volatility index increases with red candlesticks this means that the sellers are more aggressive than buyers. (Can indicate a trend change)
INDICATOR IN ACTION
This indicator is best presented live, the graphs below gives a hint of how the Volatility Index works.
The indicator works on any market, security, currency, stock, etc. and on any timeframe.
BTCUSD
EURUSD
WALL STREET
I hope you find this indicator useful , and please comment or contact me if you like the script or have any questions/suggestions for future improvements. Thanks!
I will continue to work on this indicator, so please share your experience and feedback with me so that I can continuously improve it. Thanks to everyone that have contacted me regarding my scripts. Your feedback is valuable for future developments!
ACCESS THE INDICATOR
• Contact me on TradingView or use the links below
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Disclaimer
Copyright by Zeiierman.
The information contained in my scripts/indicators/ideas does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My scripts/indicators/ideas are only for educational purposes!
