Historical Volatility Percentile tells you the percentage of the days from the past year (252 trading days) that have lower volatility than the current volatility.
I included a simple moving average as a signal line to show you how volatile the stock is at the moment.
I have included simple colors to let you know when to enter or exit a position.
Buy when price higher than EMA & historical volatility higher than SMA Sell when price lower than EMA & historical volatility higher than SMA
Please let me know if you would like me to publish any other indicators! I always love to hear from you guys.
This script is great! Is there anyway to soften the volatility curve? Do you think it would make sense to add an option to create an (S/E)MA. It would help to visualize cycle changes
cheatcountry
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@victobio, thank you! are you talking about adding an optional smoothing to the hvp variable?
victobio
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@cheatcountry, Yes. I am not sure about the technical definition of "smoothing", but I could picture sort of a moving average that can be adjusted in length similar as done with price
victobio
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@victobio, I just noticed an SMA is applied and can also be adjusted with the variable lenght, so I think that is what I was looking for. Thanks!
cheatcountry
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@victobio, yes the blue line is the smoothed volatility and it can be adjusted. I will be adding a smoothing option for my other indicators that have choppy lines like my rsi indicators so keep an eye on that