Chande Volatility-Based Trailing Stops This indicator is developed from a description outlined in the Chande - Kroll book, "The New Technical Trader". It is designed to help control risk by plotting two lines that function as long and short trailing stops.
How does it work?
"These stops are derived from recent highest high or lowest low. They adjust based on volatility. However, to avoid giving up a sizable chunk of profit before the stop is hit, it is modified in such a way that the stop can only advance with price, not retreat. This will lock in a greater portion of potential profits..."
Settings:
The default settings are those described in the book. They are described as being best for intermediate term trades. Use the multiplier to tighten or loosen the stop. A smaller multiplier will result in tighter stops. It is recommended to adjust this value for your preferred timeframe. You can toggle the trailing stop lines on or off as well as cross over marker.
ค้นหาในสคริปต์สำหรับ "Volatility"
Donchian Volatility Indicator - Adaptive Channel WidthThis indicator is designed to help traders assess and analyze market volatility. By calculating the width of the Donchian channels, it provides valuable insights into the range of price movements over a specified period. This indicator helps traders identify periods of high and low volatility, enabling them to make more informed trading decisions.
The indicator is based on the concept of Donchian channels, which consist of the highest high and lowest low over a specified lookback period. The channel width is calculated as the difference between the upper and lower channels. A wider channel indicates higher volatility, suggesting potentially larger price movements and increased trading opportunities. On the other hand, a narrower channel suggests lower volatility, indicating a relatively calmer market environment with potentially fewer trading opportunities.
The adaptive aspect of the indicator refers to its ability to adjust the width of the channels dynamically based on market conditions. The indicator calculates the width of the channels using the Average True Range (ATR) indicator, which measures the average range of price movements over a specified period. By multiplying the ATR value with the user-defined ATR multiplier, the indicator adapts the width of the channels to reflect the current level of volatility. During periods of higher volatility, the channels expand to accommodate larger price movements, providing a broader range for assessing volatility. Conversely, during periods of lower volatility, the channels contract, reflecting the narrower price ranges and signaling a decrease in volatility. This adaptive nature allows traders to have a flexible and responsive measure of volatility, ensuring that the indicator reflects the current market conditions accurately.
To provide further insights, the indicator includes a signal line. The signal line is derived from the channel width and is calculated as a simple moving average over a specified signal period. This signal line acts as a reference level, allowing traders to compare the current channel width with the average width over a given time frame. By assessing whether the current channel width is above or below the signal line, traders can gain additional context on the volatility level in the market.
The colors used in the Donchian Volatility Indicator - Adaptive Channel Width play a vital role in visualizing the volatility levels:
-- Lime Color : When the channel width is above the signal line, it is colored lime. This color signifies that volatility has entered the market, indicating potentially higher price movements and increased trading opportunities. Traders can pay closer attention to the lime-colored channel width as it may suggest favorable conditions for trend-following or breakout trading strategies.
-- Fuchsia Color : When the channel width is below the signal line, it is colored fuchsia. This color represents relatively low volatility, suggesting a calmer market environment with potentially fewer trading opportunities. Traders may consider adjusting their strategies during periods of low volatility, such as employing range-bound or mean-reversion strategies.
-- Aqua Color : The signal line is represented by the aqua color. This color allows traders to easily identify the signal line amidst the channel width. The aqua color provides a visual reference for the average channel width and helps traders assess whether the current width is above or below this average.
The Donchian Volatility Indicator - Adaptive Channel Width has several practical applications for traders:
-- Volatility Assessment : Traders can use this indicator to assess the level of volatility in the market. By observing the width of the Donchian channels and comparing it to the signal line, they can determine whether the current volatility is relatively high or low. This information helps traders set appropriate expectations and adjust their trading strategies accordingly.
-- Breakout Trading : Wide channel widths may indicate an increased likelihood of price breakouts. Traders can use the Donchian Volatility Indicator - Adaptive Channel Width to identify potential breakout opportunities. When the channel width exceeds the signal line, it suggests a higher probability of significant price movements, potentially signaling a breakout. Traders may consider entering trades in the direction of the breakout.
-- Risk Management : The indicator can assist in setting appropriate stop-loss levels based on the current volatility. During periods of high volatility (lime-colored channel width), wider stop-loss orders may be warranted to account for larger price swings. Conversely, during periods of low volatility (fuchsia-colored channel width), narrower stop-loss orders may be appropriate to limit risk in a more range-bound market.
While the Donchian Volatility Indicator - Adaptive Channel Width is a valuable tool, it is important to consider its limitations:
-- Lagging Indicator : The indicator relies on historical price data, making it a lagging indicator. It provides insights based on past price movements and may not capture sudden changes or shifts in volatility. Traders should be aware that the indicator may not generate real-time signals and should be used in conjunction with other indicators and analysis tools.
-- False Signals : Like any technical indicator, the Donchian Volatility Indicator - Adaptive Channel Width is not immune to generating false signals. Traders should exercise caution and use additional analysis to confirm the signals generated by the indicator. Considering the broader market context and employing risk management techniques can help mitigate the impact of false signals.
-- Market Conditions : Market conditions can vary, and volatility levels can differ across different assets and timeframes. Traders should adapt their strategies and consider other market factors when interpreting the signals provided by the indicator. It is crucial to avoid relying solely on the indicator and to incorporate a comprehensive analysis of the market environment.
In conclusion, this indicator is a powerful tool for assessing market volatility. By examining the width of the Donchian channels and comparing it to the signal line, traders can gain insights into the level of volatility and adjust their trading strategies accordingly. The color-coded representation of the channel width and signal line allows for easy visualization and interpretation of the volatility dynamics. Traders should utilize this indicator as part of a broader trading approach, incorporating other technical analysis tools and considering market conditions for a comprehensive assessment of market volatility.
HMA Gaussian Volatility AdjustedOverview
The "HMA Gaussian Volatility Adjusted" indicator introduces a unique combination of HMA smoothing with a Gaussian filter and two components to measure volatility (Average True Range (ATR) and Standard Deviation (SD)). This tool provides traders with a stable and accurate measure of price trends by integrating a Gaussian Filter smoothed using HMA with a customized calculation of volatility. This innovative approach allows for enhanced sensitivity to market fluctuations while filtering out short-term price noise.
Technical Composition and Calculation
The "HMA Gaussian Volatility Adjusted" indicator incorporates HMA smoothing and dynamic standard deviation calculations to build upon traditional volatility measures.
HMA & Gaussian Smoothing:
HMA Calculation (HMA_Length): The script applies a Hull Moving Average (HMA) to smooth the price data over a user-defined period, reducing noise and helping focus on broader market trends.
Gaussian Filter Calculation (Length_Gaussian): The smoothed HMA data is further refined by putting it into a Gaussian filter to incorporate a normal distribution.
Volatility Measurement:
ATR Calculation (ATR_Length, ATR_Factor): The indicator incorporates the Average True Range (ATR) to measure market volatility. The user-defined ATR multiplier is applied to this value to calculate upper and lower trend bands around the Gaussian, providing a dynamic measure of potential price movement based on recent volatility.
Standard Deviation Calculation (SD_Length): The script calculates the standard deviation of the price over a user-defined length, providing another layer of volatility measurement. The upper and lower standard deviation bands (SDD, SDU) act as additional indicators of price extremes.
Momentum Calculation & Scoring
When the indicator signals SHORT:
Diff = Price - Upper Boundary of the Standard Deviation (calculated on a Gaussian filter).
When the indicator signals LONG:
Diff = Price - Upper Boundary of the ATR (calculated on a Gaussian filter).
The calculated Diff signals how close the indicator is to changing trends. An EMA is applied to the Diff to smooth the data. Positive momentum occurs when the Diff is above the EMA, and negative momentum occurs when the Diff is below the EMA.
Trend Detection
Trend Logic: The indicator uses the calculated bands to identify whether the price is moving within or outside the standard deviation and ATR bands. Crosses above or below these bands, combined with positive/negative momentum, signals potential uptrends or downtrends, offering traders a clear view of market direction.
Features and User Inputs
The "HMA Gaussian Volatility Adjusted" script offers a variety of user inputs to customize the indicator to suit traders' styles and market conditions:
HMA Length: Allows traders to adjust the sensitivity of the HMA smoothing to control the amount of noise filtered from the price data.
Gaussian Length: Users can define the length at which the Gaussian filter is applied.
ATR Length and Multiplier: These inputs let traders fine-tune the ATR calculation, affecting the size of the dynamic upper and lower bands to adjust for price volatility.
Standard Deviation Length: Controls how the standard deviation is calculated, allowing further customization in detecting price volatility.
EMA Confluence: This input lets traders determine the length of the EMA used to calculate price momentum.
Type of Plot Setting: Allows users to determine how the indicator signal is plotted on the chart (Background color, Trend Lines, BOTH (backgroung color and Trend Lines)).
Transparency: Provides users with customization of the background color's transparency.
Color Long/Short: Offers users the option to choose their preferred colors for both long and short signals.
Summary and Usage Tips
The "HMA Gaussian Volatility Adjusted" indicator is a powerful tool for traders looking to refine their analysis of market trends and volatility. Its combination of HMA smoothing, Gaussian filtering, and standard deviation analysis provides a nuanced view of market movements by incorporating various metrics to determine direction, momentum, and volatility. This helps traders make better-informed decisions. It's recommended to experiment with the various input parameters to optimize the indicator for specific needs.
Relative VolatilityRelative Volatility is a technical indicator designed to assess changes in market volatility by comparing fast and slow Average True Range (ATR) values. It operates by subtracting a slower ATR (e.g., 50-period ATR) from a faster ATR (e.g., 20-period ATR) and visualizing the result as a histogram. This enables traders to determine whether volatility is increasing or decreasing over time.
This indicator can help traders recognize volatility trends, which can inform decisions related to trade entries, exits, and risk management.
Interpreting Volatility Changes
Increasing Volatility: When the histogram is above zero, it indicates that the fast ATR is greater than the slow ATR, signifying an increase in short-term volatility compared to the long-term average. This may suggest heightened market activity and potential trading opportunities.
Decreasing Volatility: When the histogram is below zero, it shows that the fast ATR is less than the slow ATR, indicating a decrease in short-term volatility relative to the long-term average. This may suggest consolidating markets or reduced trading activity.
Relative Volatility assists traders in monitoring and analyzing changes in market volatility, providing insights that can enhance trading strategies and decision-making processes.
Dynamic Volatility EnvelopeDynamic Volatility Envelope: Indicator Overview
The Dynamic Volatility Envelope is an advanced, multi-faceted technical indicator designed to provide a comprehensive view of market trends, volatility, and potential future price movements. It centers around a customizable linear regression line, enveloped by dynamically adjusting volatility bands. The indicator offers rich visual feedback through gradient coloring, candle heatmaps, a background volatility pulse, and an on-chart trend strength meter.
Core Calculation Mechanism
Linear Regression Core :
-A central linear regression line is calculated based on a user-defined source (e.g., close, hl2) and lookback period.
-The regression line can be optionally smoothed using an Exponential Moving Average (EMA) to reduce noise.
-The slope of this regression line is continuously calculated to determine the current trend direction and strength.
Volatility Channel :
-Dynamic bands are plotted above and below a central basis line. This basis is typically the calculated regression line but shifts to an EMA in Keltner mode.
-The width of these bands is determined by market volatility, using one of three user-selectable modes:
ATR Mode : Bandwidth is a multiple of the Average True Range (ATR).
Standard Deviation Mode : Bandwidth is a multiple of the Standard Deviation of the source data.
Keltner Mode (EMA-based ATR) : ATR-based bands are plotted around a central Keltner EMA line, offering a smoother channel.
The channel helps identify dynamic support and resistance levels and assess market volatility.
Future Projection :
The indicator can project the current regression line and its associated volatility bands into the future for a user-defined number of bars. This provides a visual guide for potential future price pathways based on current trend and volatility characteristics.
Candle Heatmap Coloring :
-Candle bodies and/or wicks/borders can be colored based on the price's position within the upper and lower volatility bands.
-Colors transition in a gradient from bearish (when price is near the lower band) through neutral (mid-channel) to bullish (when price is near the upper band), providing an intuitive visual cue of price action relative to the dynamic envelope.
Background Volatility Pulse :
The chart background color can be set to dynamically shift based on a ratio of short-term to long-term ATR. This creates a "pulse" effect, where the background subtly changes color to indicate rising or falling market volatility.
Trend Strength Meter :
An on-chart text label displays the current trend status (e.g., "Strong Bullish", "Neutral", "Bearish") based on the calculated slope of the regression line relative to user-defined thresholds for normal and strong trends.
Key Features & Components
-Dynamic Linear Regression Line: Core trend indicator with optional smoothing and slope-based gradient coloring.
-Multi-Mode Volatility Channel: Choose between ATR, Standard Deviation, or Keltner (EMA-based ATR) calculations for band width.
-Customizable Vertical Gradient Channel Fills: Visually distinct fills for upper and lower channel segments with user-defined top/bottom colors and gradient spread.
-Future Projection: Extrapolates regression line and volatility bands to forecast potential price paths.
-Price-Action Based Candle Heatmap: Intuitive candle coloring based on position within the volatility channel, with adjustable gradient midpoint.
-Volatility-Reactive Background Gradient: Subtle background color shifts to reflect changes in market volatility.
-On-Chart Trend Strength Meter: Clear textual display of current trend direction and strength.
-Extensive Visual Customization: Fine-tune colors, line styles, widths, and gradient aggressiveness for most visual elements.
-Comprehensive Tooltips: Detailed explanations for every input setting, ensuring ease of use and understanding.
Visual Elements Explained
Regression Line : The primary trend line. Its color dynamically changes (e.g., green for uptrend, red-pink for downtrend, neutral for flat) based on its slope, with smooth gradient transitions.
Volatility Channel :
Upper & Lower Bands : These lines form the outer boundaries of the envelope, acting as dynamic support and resistance levels.
Channel Fill : The area between the band center and the outer bands is filled with a vertical gradient. For example, the upper band fill might transition from a darker green near the center to a lighter green at the upper band.
Band Borders : The lines outlining the upper and lower bands, with customizable color and width.
Future Projection Lines & Fill :
Projected Regression Line : An extension of the current regression line into the future, typically styled differently (e.g., dashed).
Projected Channel Bands : Extensions of the upper and lower volatility bands.
Projected Area Fill : A semi-transparent fill between the projected upper and lower bands.
Candle Heatmap Coloring : When enabled, candles are colored based on their closing price's relative position within the channel. Bullish colors appear when price is in the upper part of the channel, bearish in the lower, and neutral in the middle. Users can choose to color the entire candle body or just the wicks and borders.
Background Volatility Pulse : The chart's background color subtly shifts (e.g., between a calm green and an agitated red-pink) to reflect the current volatility regime.
Trend Strength Meter : A text label (e.g., "TREND: STRONG BULLISH") positioned on the chart, providing an at-a-glance summary of the trend.
Configuration Options
Users can tailor the indicator extensively via the settings panel, with options logically grouped:
Core Analysis Engine : Adjust regression source data, lookback period, and EMA smoothing for the regression line.
Regression Line Visuals : Control visibility, line width, trend-based colors (uptrend, downtrend, flat), slope thresholds for trend definition, strong slope multiplier (for Trend Meter), and color gradient sharpness.
Volatility Channel Configuration : Select band calculation mode (ATR, StdDev, Keltner), set relevant periods and multipliers. Customize colors for vertical gradient fills (upper/lower, top/bottom), border line colors, widths, and the gradient spread factor for fills.
Future Projection Configuration : Toggle visibility, set projection length (number of bars), line style, and colors for projected regression and band areas.
Appearance & Candle Theme : Set default bull/bear candle colors, enable/disable candle heatmap, choose if body color matches heatmap, and configure heatmap gradient target colors (bull, neutral, bear) and the gradient's midpoint.
Background Volatility Pulse : Enable/disable the background effect and configure short/long ATR periods for the volatility calculation.
Trend Strength Meter : Enable/disable the meter, and choose its on-chart position and text size.
Interpretation Notes
-The Regression Line is the primary indicator of trend direction. Its slope and color provide immediate insight.
-The Volatility Bands serve as dynamic support and resistance zones. Price approaching or touching these bands may indicate potential turning points or breakouts. The width of the channel itself reflects market volatility – widening suggests increasing volatility, while narrowing suggests consolidation.
Future Projections are not predictions but rather an extension of current conditions. They can help visualize potential areas where price might interact with projected support/resistance if the current trend and volatility persist.
Candle Heatmap Coloring offers a quick visual assessment of where price is trading within the dynamic envelope, highlighting strength or weakness relative to the channel.
The Background Volatility Pulse gives a contextual feel for overall market agitation or calmness.
This indicator is designed to be a comprehensive analytical tool. Its signals and visualizations are best used in conjunction with other technical analysis techniques, price action study, and robust risk management practices. It is not intended as a standalone trading system.
Risk Disclaimer
Trading and investing in financial markets involve substantial risk of loss and is not suitable for every investor. The Dynamic Volatility Envelope indicator is provided for analytical and educational purposes only and does not constitute financial advice or a recommendation to buy or sell any security. Past performance is not indicative of future results. Always use sound risk management practices and never trade with capital you cannot afford to lose. The developers assume no liability for any financial losses incurred based on the use of this indicator.
RSI Volatility Suppression Zones [BigBeluga]RSI Volatility Suppression Zones is an advanced indicator that identifies periods of suppressed RSI volatility and visualizes these suppression zones on the main chart. It also highlights breakout dynamics, giving traders actionable insights into potential market momentum.
🔵 Key Features:
Detection of Suppression Zones:
Identifies periods where RSI volatility is suppressed and marks these zones on the main price chart.
Breakout Visualization:
When the price breaks above the suppression zone, the box turns aqua, and an upward label is drawn to indicate a bullish breakout.
If the price breaks below the zone, the box turns purple, and a downward label is drawn for a bearish breakout.
Breakouts accompanied by a "+" label represent strong moves caused by short-lived, tight zones, signaling significant momentum.
Wave Labels for Consolidation:
If the suppression zone remains unbroken, a "wave" label is displayed within the gray box, signifying continued price stability within the range.
Gradient Intensity Below RSI:
A gradient strip below the RSI line increases in intensity based on the duration of the suppressed RSI volatility period.
This visual aid helps traders gauge how extended the low volatility phase is.
🔵 Usage:
Identify Breakouts: Use color-coded boxes and labels to detect breakouts and their direction, confirming potential trend continuation or reversals.
Evaluate Market Momentum: Leverage "+" labels for strong breakout signals caused by short suppression phases, indicating significant market moves.
Monitor Price Consolidation: Observe gray boxes and wave labels to understand ongoing consolidation phases.
Analyze RSI Behavior: Utilize the gradient strip to measure the longevity of suppressed volatility phases and anticipate breakout potential.
RSI Volatility Suppression Zones provides a powerful visual representation of RSI volatility suppression, breakout signals, and price consolidation, making it a must-have tool for traders seeking to anticipate market movements effectively.
ADW - Volatility MapThe ADW - Volatility Map script is a tool for traders to measure and visualize the volatility of a specific asset. It uses both the Average True Range (ATR) and True Range (TR) values in combination with the Commodity Channel Index (CCI) to provide a comprehensive map of the market's volatility.
Average True Range (ATR) : ATR is a measure of market volatility. It measures the average of true price ranges over a time period. In this script, we use it to calculate the ATR-CCI which gives us a more precise measure of volatility.
True Range (TR) : TR is the greatest distance the price moved during a period. It is used in this script to calculate the TR-CCI, adding another level of detail to our volatility measurement.
Commodity Channel Index (CCI) : CCI is a versatile indicator that can be used to identify a new trend or warn of extreme conditions. We use it to scale and compare the ATR and TR values, hence providing a relative measure of volatility.
The script interprets the CCI values and provides four different conditions for both ATR and TR:
Is Low (CCI < 0)
Is High (CCI > 0)
Is Extremely Low (CCI <= -100)
Is Extremely High (CCI >= 100)
The interpretation of these conditions is displayed on the chart using colour highlighting. When the ATR or TR are low, high, extremely low, or extremely high, the script fills the chart accordingly.
In addition, the script has an option `awaitBarConfirmation` set at the beginning. If this is true, the script will only display indicators for fully formed bars, ensuring that the indicators you see are based on confirmed information.
Note: The colours for different conditions can be customized at the beginning of the script, allowing you to personalize the visual output to match your preferences.
This script is designed to provide a visually clear and immediate understanding of the market's volatility. Use it to enhance your decision-making process and adapt your trading strategy to the current market conditions.
TS Volatility-Adjusted EWMAThe TS Volatility-Adjusted Exponentially Weighted Moving Average (EWMA) is a dynamic trend-following indicator designed to adapt to changing market volatility. Unlike traditional moving averages, this indicator adjusts its sensitivity based on market conditions, making it more responsive during periods of high volatility and smoother when markets are calmer.
Key Features:
Volatility Adjustment: The EWMA length is dynamically scaled using the Average True Range (ATR), making it adaptive to market volatility. This allows the indicator to react quickly when volatility spikes and remain stable when volatility drops.
User-Controlled Smoothing: The indicator includes an optional smoothing period, allowing you to adjust how smooth or reactive the line is to price changes. If you prefer a more smoothed-out trend, simply increase the smoothing length.
This indicator is perfect for trend-following traders who want an adaptive tool that stays responsive to the market’s volatility. The TS Volatility-Adjusted EWMA helps you confidently follow market trends, whether you’re riding a long-term trend or catching shorter-term movements.
Volumetric Volatility Breaker Blocks [UAlgo]The "Volumetric Volatility Breaker Blocks " indicator is designed for traders who want a comprehensive understanding of market volatility combined with volume analysis. This indicator provides a clear visualization of significant volatility areas (or blocks), characterized by price movements that exceed a specific volatility threshold, as calculated using the ATR (Average True Range). The concept is enhanced by integrating volume-based insights, offering a view of market activity that helps users to recognize when significant price changes are being supported by an appropriate level of market participation.
The indicator calculates breaker blocks for both bullish and bearish market conditions, providing distinct visual elements that identify periods of high volatility and substantial volume divergence. The focus on both volume and volatility makes this tool versatile, allowing traders to assess the strength of price movements as well as areas where price might break above or below previously established levels.
It supports adjustable parameters, such as volatility length, smoothness factor, and volume display, allowing traders to fine-tune the indicator according to their trading strategy and market environment. The highlighted breaker blocks assist in identifying zones of potential price reversal or continuation, which can be critical for making informed trading decisions.
🔶 Key Features
Volatility-Based Block Identification: The indicator uses the Average True Range (ATR) to determine the volatility of the market. When the ATR exceeds a specified threshold (smooth ATR multiplied by a user-defined multiplier), it highlights these areas as volatility blocks. The idea is to mark periods where price activity is significantly divergent from normal conditions, which often signals market opportunities.
Volume Integrated Analysis: In addition to tracking volatility, the indicator incorporates volume data, allowing traders to see the amount of activity that occurs during these high-volatility periods. This helps in identifying whether a price movement is likely sustainable or whether it lacks market support.
User Adjustable Parameters: The indicator offers customization options for the volatility length (using ATR), smooth length, and multiplier for sensitivity adjustment. These settings enable users to modify the indicator’s responsiveness to market conditions.
The option to display the last few volatility blocks allows traders to manage clutter on their charts and focus only on the most recent significant data.
Mitigation Method: Users can select between different mitigation methods ("Close" or "Wick") to determine how blocks are broken. This adds an extra layer of adaptability, allowing traders to modify the indicator's response based on different price action strategies.
Dynamic Visual Representation: The indicator dynamically draws boxes for volatility blocks and shades them according to market direction, with split areas showing the bullish and bearish strength contributions. It also provides percentage volume for each block, helping traders understand the relative market participation during these moves.
🔶 Interpreting the Indicator
Identifying High Volatility Areas: When a new volatility block appears, it signifies that the market is experiencing higher-than-usual volatility, driven by increased ATR values. Traders should pay attention to these blocks, as they often indicate that a significant price move is occurring. Bullish blocks suggest upward pressure, whereas bearish blocks indicate downward pressure.
Volume Insights: The volume associated with each volatility block provides an insight into how much market participation accompanies these moves. Higher volume within a block implies that the market is actively supporting the price change, which may be a sign of continuation. Low volume suggests that the movement may lack the strength to persist.
Bullish vs. Bearish Strength Analysis: Each block is split into bullish and bearish strength, giving a clearer picture of what’s happening within the volatility period. If the bullish portion dominates, it indicates strong upward sentiment during that period. Conversely, if the bearish side is more prominent, there is more selling pressure. This breakdown helps in understanding intra-block market dynamics.
Volume Percentage Display: The indicator also displays the volume percentage in each block, which provides context for the strength of the move relative to recent market activity. Higher percentages mean more market engagement, which could confirm the legitimacy of a trend or a significant breakout.
🔶 Disclaimer
Use with Caution: This indicator is provided for educational and informational purposes only and should not be considered as financial advice. Users should exercise caution and perform their own analysis before making trading decisions based on the indicator's signals.
Not Financial Advice: The information provided by this indicator does not constitute financial advice, and the creator (UAlgo) shall not be held responsible for any trading losses incurred as a result of using this indicator.
Backtesting Recommended: Traders are encouraged to backtest the indicator thoroughly on historical data before using it in live trading to assess its performance and suitability for their trading strategies.
Risk Management: Trading involves inherent risks, and users should implement proper risk management strategies, including but not limited to stop-loss orders and position sizing, to mitigate potential losses.
No Guarantees: The accuracy and reliability of the indicator's signals cannot be guaranteed, as they are based on historical price data and past performance may not be indicative of future results.
Expected Move by Option's Implied Volatility High Liquidity
This script plots boxes to reflect weekly, monthly and yearly expected moves based on "At The Money" put and call option's implied volatility.
Symbols in range: This script will display Expected Move data for Symbols with high option liquidity.
Weekly Updates: Each weekend, the script is updated with fresh expected move data, a job that takes place every Saturday following the close of the markets on Friday.
In the provided script, several boxes are created and plotted on a price chart to represent the expected price moves for various timeframes.
These boxes serve as visual indicators to help traders and analysts understand the expected price volatility.
Definition of Expected Move: Expected Move refers to the anticipated range within which the price of an underlying asset is expected to move over a specific time frame, based on the current implied volatility of its options. Calculation: Expected Move is typically calculated by taking the current stock price and applying a multiple of the implied volatility. The most commonly used multiple is the one-standard-deviation move, which encompasses approximately 68% of potential price outcomes.
Example: Suppose a stock is trading at $100, and the implied volatility of its options is 20%. The one-standard-deviation expected move would be $100 * 0.20 = $20.
This suggests that there is a 68% probability that the stock's price will stay within a range of $80 to $120 over the specified time frame. Usage: Traders and investors use the expected move as a guideline for setting trading strategies and managing risk. It helps them gauge the potential price swings and make informed decisions about buying or selling options.There is a 68% chance that the underlying asset stock or ETF price will be within the boxed area at option expiry. The data on this script is updating weekly at the close of Friday, calculating the implied volatility for the week/month/year based on the "at the money" put and call options with the relevant expiry. This script will display Expected Move data for Symbols within the range of JBL-NOTE in alphabetical order.
In summary, implied volatility reflects market expectations about future price volatility, especially in the context of options. Expected Move is a practical application of implied volatility, helping traders estimate the likely price range for an asset over a given period. Both concepts play a vital role in assessing risk and devising trading strategies in the options and stock markets.
Expected Move by Option's Implied Volatility Symbols: EAT - GBDC
This script plots boxes to reflect weekly, monthly and yearly expected moves based on "At The Money" put and call option's implied volatility.
Symbols in range: This script will display Expected Move data for Symbols within the range of EAT-GDBC in alphabetical order.
Weekly Updates: Each weekend, the script is updated with fresh expected move data, a job that takes place every Saturday following the close of the markets on Friday.
In the provided script, several boxes are created and plotted on a price chart to represent the expected price moves for various timeframes.
These boxes serve as visual indicators to help traders and analysts understand the expected price volatility.
Definition of Expected Move: Expected Move refers to the anticipated range within which the price of an underlying asset is expected to move over a specific time frame, based on the current implied volatility of its options. Calculation: Expected Move is typically calculated by taking the current stock price and applying a multiple of the implied volatility. The most commonly used multiple is the one-standard-deviation move, which encompasses approximately 68% of potential price outcomes.
Example: Suppose a stock is trading at $100, and the implied volatility of its options is 20%. The one-standard-deviation expected move would be $100 * 0.20 = $20.
This suggests that there is a 68% probability that the stock's price will stay within a range of $80 to $120 over the specified time frame. Usage: Traders and investors use the expected move as a guideline for setting trading strategies and managing risk. It helps them gauge the potential price swings and make informed decisions about buying or selling options. There is a 68% chance that the underlying asset stock or ETF price will be within the boxed area at option expiry. The data on this script is updating weekly at the close of Friday, calculating the implied volatility for the week/month/year based on the "at the money" put and call options with the relevant expiry.
In summary, implied volatility reflects market expectations about future price volatility, especially in the context of options. Expected Move is a practical application of implied volatility, helping traders estimate the likely price range for an asset over a given period. Both concepts play a vital role in assessing risk and devising trading strategies in the options and stock markets.
Expected Move by Option's Implied Volatility Symbols: CLFD-EARN This script plots boxes to reflect weekly, monthly and yearly expected moves based on "At The Money" put and call option's implied volatility.
Symbols in range: This script will display Expected Move data for Symbols within the range of CLFD - EARN in alphabetical order.
Weekly Updates: Each weekend, the script is updated with fresh expected move data, a job that takes place every Saturday following the close of the markets on Friday.
In the provided script, several boxes are created and plotted on a price chart to represent the expected price moves for various timeframes.
These boxes serve as visual indicators to help traders and analysts understand the expected price volatility.
Definition of Expected Move: Expected Move refers to the anticipated range within which the price of an underlying asset is expected to move over a specific time frame, based on the current implied volatility of its options. Calculation: Expected Move is typically calculated by taking the current stock price and applying a multiple of the implied volatility. The most commonly used multiple is the one-standard-deviation move, which encompasses approximately 68% of potential price outcomes.
Example: Suppose a stock is trading at $100, and the implied volatility of its options is 20%. The one-standard-deviation expected move would be $100 * 0.20 = $20.
This suggests that there is a 68% probability that the stock's price will stay within a range of $80 to $120 over the specified time frame. Usage: Traders and investors use the expected move as a guideline for setting trading strategies and managing risk. It helps them gauge the potential price swings and make informed decisions about buying or selling options. There is a 68% chance that the underlying asset stock or ETF price will be within the boxed area at option expiry. The data on this script is updating weekly at the close of Friday, calculating the implied volatility for the week/month/year based on the "at the money" put and call options with the relevant expiry.
In summary, implied volatility reflects market expectations about future price volatility, especially in the context of options. Expected Move is a practical application of implied volatility, helping traders estimate the likely price range for an asset over a given period. Both concepts play a vital role in assessing risk and devising trading strategies in the options and stock markets.
Expected Move by Option's Implied Volatility Symbols: A - AZZ
This script plots boxes to reflect weekly, monthly and yearly expected moves based on "At The Money" put and call option's implied volatility.
Symbols in range: This script will display Expected Move data for Symbols within the range of A - AZZ in alphabetical order.
Weekly Updates: Each weekend, the script is updated with fresh expected move data, a job that takes place every Saturday following the close of the markets on Friday.
In the provided script, several boxes are created and plotted on a price chart to represent the expected price moves for various timeframes.
These boxes serve as visual indicators to help traders and analysts understand the expected price volatility.
Definition of Expected Move: Expected Move refers to the anticipated range within which the price of an underlying asset is expected to move over a specific time frame, based on the current implied volatility of its options. Calculation: Expected Move is typically calculated by taking the current stock price and applying a multiple of the implied volatility. The most commonly used multiple is the one-standard-deviation move, which encompasses approximately 68% of potential price outcomes.
Example: Suppose a stock is trading at $100, and the implied volatility of its options is 20%. The one-standard-deviation expected move would be $100 * 0.20 = $20.
This suggests that there is a 68% probability that the stock's price will stay within a range of $80 to $120 over the specified time frame. Usage: Traders and investors use the expected move as a guideline for setting trading strategies and managing risk. It helps them gauge the potential price swings and make informed decisions about buying or selling options. There is a 68% chance that the underlying asset stock or ETF price will be within the boxed area at option expiry. The data on this script is updating weekly at the close of Friday, calculating the implied volatility for the week/month/year based on the "at the money" put and call options with the relevant expiry.
In summary, implied volatility reflects market expectations about future price volatility, especially in the context of options. Expected Move is a practical application of implied volatility, helping traders estimate the likely price range for an asset over a given period. Both concepts play a vital role in assessing risk and devising trading strategies in the options and stock markets.
Ultimate Volatility Indicator [CC]The Ultimate Volatility Indicator was created by Richard Poster (Stocks and Commodities July 2021 pg 21) and this is a very simple but effective indicator. The idea behind volatility indicators is that when the indicator rises above a certain threshold then volatility is high enough and you can make a good amount of money riding the trend in the current direction and then exit when volatility drops below the threshold or until the underlying trend changes.
I have included a threshold that you can change from the default but I would recommend trying out different values to see what works best for you. This indicator will let you know as soon as volatility increases and reacts very quickly. I have included strong buy and sell signals in addition to normal ones so darker colors are strong buy and sell signals and lighter colors are normal signals. Buy when the line turns green and sell when it turns red.
Please let me know if you would like to see me publish any other indicators!
Adaptive Volatility-Controlled LSMA [QuantAlgo]Adaptive Volatility-Controlled LSMA by QuantAlgo 📈💫
Introducing the Adaptive Volatility-Controlled LSMA (Least Squares Moving Average) , a powerful trend-following indicator that combines trend detection with dynamic volatility adjustments. This indicator is designed to help traders and investors identify market trends while accounting for price volatility, making it suitable for a wide range of assets and timeframes. By integrating LSMA for trend analysis and Average True Range (ATR) for volatility control, this tool provides clearer signals during both trending and volatile market conditions.
💡 Core Concept and Innovation
The Adaptive Volatility-Controlled LSMA leverages the precision of the LSMA to track market trends and combines it with the sensitivity of the ATR to account for market volatility. LSMA fits a linear regression line to price data, providing a smoothed trend line that is less reactive to short-term noise. The ATR, on the other hand, dynamically adjusts the volatility bands around the LSMA, allowing the indicator to filter out false signals and respond to significant price moves. This combination provides traders with a reliable tool to identify trend shifts while managing risk in volatile markets.
📊 Technical Breakdown and Calculations
The indicator consists of the following components:
1. Least Squares Moving Average (LSMA): The LSMA calculates a linear regression line over a defined period to smooth out price fluctuations and reveal the underlying trend. It is more reactive to recent data than traditional moving averages, allowing for quicker trend detection.
2. ATR-Based Volatility Bands: The Average True Range (ATR) measures market volatility and creates upper and lower bands around the LSMA. These bands expand and contract based on market conditions, helping traders identify when price movements are significant enough to indicate a new trend.
3. Volatility Extensions: To further account for rapid market changes, the bands are extended using additional volatility measures. This ensures that trend signals are generated when price movements exceed both the standard volatility range and the extended volatility range.
⚙️ Step-by-Step Calculation:
1. LSMA Calculation: The LSMA is computed using a least squares regression method over a user-defined length. This provides a trend line that adapts to recent price movements while smoothing out noise.
2. ATR and Volatility Bands: ATR is calculated over a user-defined length and is multiplied by a factor to create upper and lower bands around the LSMA. These bands help detect when price movements are substantial enough to signal a new trend.
3. Trend Detection: The price’s relationship to the LSMA and the volatility bands is used to determine trend direction. If the price crosses above the upper volatility band, a bullish trend is detected. Conversely, a cross below the lower band indicates a bearish trend.
✅ Customizable Inputs and Features:
The Adaptive Volatility-Controlled LSMA offers a variety of customizable options to suit different trading or investing styles:
📈 Trend Settings:
1. LSMA Length: Adjust the length of the LSMA to control its sensitivity to price changes. A shorter length reacts quickly to new data, while a longer length smooths the trend line.
2. Price Source: Choose the type of price (e.g., close, high, low) that the LSMA uses to calculate trends, allowing for different interpretations of price data.
🌊 Volatility Controls:
ATR Length and Multiplier: Adjust the length and sensitivity of the ATR to control how volatility is measured. A higher ATR multiplier widens the bands, making the trend detection less sensitive, while a lower multiplier tightens the bands, increasing sensitivity.
🎨 Visualization and Alerts:
1. Bar Coloring: Customize bar colors to visually distinguish between uptrends and downtrends.
2. Volatility Bands: Enable or disable the display of volatility bands on the chart. The bands provide visual cues about trend strength and volatility thresholds.
3. Alerts: Set alerts for when the price crosses the upper or lower volatility bands, signaling potential trend changes.
📈 Practical Applications
The Adaptive Volatility-Controlled LSMA is ideal for traders and investors looking to follow trends while accounting for market volatility. Its key use cases include:
Identifying Trend Reversals: The indicator detects when price movements break through volatility bands, signaling potential trend reversals.
Filtering Market Noise: By applying ATR-based volatility filtering, the indicator helps reduce false signals caused by short-term price fluctuations.
Managing Risk: The volatility bands adjust dynamically to account for market conditions, helping traders manage risk and improve the accuracy of their trend-following strategies.
⭐️ Summary
The Adaptive Volatility-Controlled LSMA by QuantAlgo offers a robust and flexible approach to trend detection and volatility management. Its combination of LSMA and ATR creates clearer, more reliable signals, making it a valuable tool for navigating trending and volatile markets. Whether you're detecting trend shifts or filtering market noise, this indicator provides the tools you need to enhance your trading and investing strategy.
Note: The Adaptive Volatility-Controlled LSMA is a tool to enhance market analysis. It should be used in conjunction with other analytical tools and should not be relied upon as the sole basis for trading or investment decisions. No signals or indicators constitute financial advice, and past performance is not indicative of future results.
Boom Hunter + Hull Suite + Volatility Oscillator StrategyTRADE CONDITIONS
Long entry:
Boom Hunter (leading indicator): Trigger line crosses over Quotient 2 line (white cross over red)
Hull Suite (trend confirmation): Price closed above hull suite line and hull suite is green (represented by horizontal line at -10 in strategy pane)
Volatility Oscillator (volatility confirmation): Volatility spike trigger line is above upper band (represented by horizontal line at -30 in strategy pane)
Short entry:
Boom Hunter (leading indicator): Trigger line crosses under Quotient 2 line (white cross under red)
Hull Suite (trend confirmation): Price closed below hull suite line and hull suite is red (represented by horizontal line at -10 in strategy pane)
Volatility Oscillator (volatility confirmation): Volatility spike trigger line is below lower band (represented by horizontal line at -30 in strategy pane)
Risk management:
Each trade risks 3% of account (configurable in settings)
SL size determined by swing low/high of previous X candles (configurable in settings) or 1 ATR if swing is less than 1 ATR
TP is calculated by Risk:Reward ratio (configurable in settings)
TIPS
Timeframe: I have found good results running on BTC/USDT 5M chart
Note: To help visual identification of trade entries and exits you may wish to add the Hull Suite and Volatility Oscillator to the chart separately. It was not possible to display them in a clear way within a single panel for the strategy. Make sure you set the settings of the auxiliary indicators to match what is in the settings of this indicator if you do decide to add them.
CREDITS
Boom Hunter Pro by veryfid
Hull Suite by InSilico
Volatility Oscillator by veryfid
TASC 2022.03 Relative Strength Volatility-Adjusted EMA█ OVERVIEW
TASC's March 2022 edition of Traders' Tips includes the "Relative Strength Moving Averages - Part 3: The Relative Strength Volatility-Adjusted Exponential Moving Average" article authored by Vitali Apirine. This is the code that implements the "RS VolatAdj EMA" from the article.
█ CONCEPTS
In a three-part article series, Vitaly Apirine examines ways to filter price movements and define turning points by applying the Relative Strength concept to exponential moving averages . The resulting indicator is more responsive and is intended to account for the relative strength of volatility .
█ CALCULATIONS
The calculation process uses the following steps:
Select an appropriate volatility index (in our case it is VIX ).
Calculate up day volatility (UV) smoothed by a 10-day EMA.
Calculate down day volatility (DV) smoothed by a 10-day EMA.
Take the absolute value of the difference between UV and DV and divide by the sum of UV and DV. This is the Volatility Strength we need.
Calculate a MLTP constant - the weighting multiplier for an exponential moving average.
Combine Volatility Strength and MLTP to create an exponential moving average on current price data.
Join TradingView!
GCM Volatility-Adaptive Trend ChannelScript Description
Name: GCM Volatility-Adaptive Trend Channel (GCM VATC)
Overview
The GCM Volatility-Adaptive Trend Channel (VATC) is a comprehensive trading tool that merges the low-lag, smooth-trending capabilities of the Jurik Moving Average (JMA) with the classic volatility analysis of Bollinger Bands (BB).
By displaying both trend and volatility in a single, intuitive interface, this indicator aims to help traders see when a trend is stable versus when it's becoming volatile and might be poised for a change.
Core Components:
JMA Trend System: At its core are three dynamically colored JMA lines (Baseline, Fast, and Slow) that provide a clear view of trend direction. The lines change color based on their slope, offering immediate visual feedback on momentum. A colored ribbon between the Baseline and Fast JMA visualizes shorter-term momentum shifts.
Standard Bollinger Bands: Layered on top are standard Bollinger Bands. Calculated from the price, these bands serve as a classic measure of market volatility. They help identify periods where the market is expanding (high volatility) or contracting (low volatility).
How to Use It
By combining these two powerful concepts, this indicator provides a unified view of both trend and volatility. It can help traders to:
Identify the primary trend direction using the smooth JMA lines.
Gauge the strength and stability of that trend.
See when the market is becoming volatile (bands widening) or consolidating (bands contracting), which can often precede a significant price move or a change in trend.
A Note on Originality & House Rules Compliance
This indicator does not introduce a new mathematical formula. Instead, its strength lies in the thoughtful combination of two well-respected, publicly available concepts: the Jurik Moving Average and Bollinger Bands. The JMA implementation is a standard public version. The goal was to create a practical, all-in-one tool for trend and volatility analysis.
This script is published as fully open-source in compliance with TradingView's House Rules. It utilizes standard, publicly available algorithms and does not contain any protected or hidden code.
Settings
All lengths, sources, and colors for the JMA lines and Bollinger Bands are fully customizable in the settings menu, allowing you to tailor the indicator to your specific trading style and asset.
I hope with this indicator Traders even Beginner can can control their emotions which increase the probabilities of the winning rates and cutting the losing strength
Purposely I Didn't plant the High low or Buy Sell signals in the chart. Because everything is in the chart where volatility Signal with the Bollinger Band and Buy Sell Signal in the JMA Dynamic colors. and that's enough to decide when to take trade and when not to.
Thank You and Happy Trading
Swing-Based Volatility IndexSwing-Based Volatility Index
This indicator helps traders quickly determine whether the market has moved enough over the past few hours to justify scalping.
It measures the percentage price swing (high to low) over a configurable time window (e.g., last 4–8 hours) and compares it to a minimum threshold (e.g., 1%).
✅ If the percent move exceeds the threshold → Market is volatile enough to scalp (green background).
🚫 If it's below the threshold → Market is too quiet (red background).
Features:
Adjustable lookback period in hours
Custom threshold for volatility sensitivity
Automatically adapts to the current chart timeframe
This tool is ideal for scalpers and short-term traders who want to avoid entering trades in low-volatility environments.
H-Infinity Volatility Filter [QuantAlgo]Introducing the H-Infinity Volatility Filter by QuantAlgo 📈💫
Enhance your trading/investing strategy with the H-Infinity Volatility Filter , a powerful tool designed to filter out market noise and identify clear trend signals in volatile conditions. By applying an advanced H∞ filtering process, this indicator assists traders and investors in navigating uncertain market conditions with improved clarity and precision.
🌟 Key Features:
🛠 Customizable Noise Parameters: Adjust worst-case noise and disturbance settings to tailor the filter to various market conditions. This flexibility helps you adapt the indicator to handle different levels of market volatility and disruptions.
⚡️ Dynamic Trend Detection: The filter identifies uptrends and downtrends based on the filtered price data, allowing you to quickly spot potential shifts in the market direction.
🎨 Color-Coded Visuals: Easily differentiate between bullish and bearish trends with customizable color settings. The indicator colors the chart’s candles according to the detected trend for immediate clarity.
🔔 Custom Alerts: Set alerts for trend changes, so you’re instantly informed when the market transitions from bullish to bearish or vice versa. Stay updated without constantly monitoring the charts.
📈 How to Use:
✅ Add the Indicator: Add the H-Infinity Volatility Filter to your favourites and apply it to your chart. Customize the noise and disturbance parameters to match the volatility of the asset you are trading/investing. This allows you to optimize the filter for your specific strategy.
👀 Monitor Trend Shifts: Watch for clear visual signals as the filter detects uptrends or downtrends. The color-coded candles and line plots help you quickly assess market conditions and potential reversals.
🔔 Set Alerts: Configure alerts to notify you when the trend changes, allowing you to react quickly to potential market shifts without needing to manually track price movements.
🌟 How It Works and Academic Background:
The H-Infinity Volatility Filter is built on the foundations of H∞ (H-infinity) control theory , a mathematical framework originating from the field of engineering and control systems. Developed in the 1980s by notable engineers such as George Zames and John C. Doyle , this theory was designed to help systems perform optimally under uncertain and noisy conditions. H∞ control focuses on minimizing the worst-case effects of disturbances and noise, making it a powerful tool for managing uncertainty in complex environments.
In financial markets, where unpredictable price fluctuations and noise often obscure meaningful trends, this same concept can be applied to price data to filter out short-term volatility. The H-Infinity Volatility Filter adopts this approach, allowing traders and investors to better identify potential trends by reducing the impact of random price movements. Instead of focusing on precise market predictions, the filter increases the probability of highlighting significant trends by smoothing out market noise.
This indicator works by processing historical price data through an H∞ filter that continuously adjusts based on worst-case noise levels and disturbances. By considering several past states, it estimates the current price trend while accounting for potential external disruptions that might influence price behavior. Parameters like "worst-case noise" and "disturbance" are user-configurable, allowing traders to adapt the filter to different market conditions. For example, in highly volatile markets, these parameters can be adjusted to manage larger price swings, while in more stable markets, they can be fine-tuned for smoother trend detection.
The H-Infinity Volatility Filter also incorporates a dynamic trend detection system that classifies price movements as bullish or bearish. It uses color-coded candles and plots—green for bullish trends and red for bearish trends—to provide clear visual cues for market direction. This helps traders and investors quickly interpret the trend and act on potential signals. While the indicator doesn’t guarantee accuracy in trend prediction, it significantly reduces the likelihood of false signals by focusing on meaningful price changes rather than random fluctuations.
How It Can Be Applied to Trading/Investing:
By applying the principles of H∞ control theory to financial markets, the H-Infinity Volatility Filter provides traders and investors with a sophisticated tool that manages uncertainty more effectively. Its design makes it suitable for use in a wide range of markets—whether in fast-moving, volatile environments or calmer conditions.
The indicator is versatile and can be used in both short-term trading and medium to long-term investing strategies. Traders can tune the filter to align with their specific risk tolerance, asset class, and market conditions, making it an ideal tool for reducing the effects of market noise while increasing the probability of detecting reliable trend signals.
For investors, the filter can help in identifying medium to long-term trends by filtering out short-term price swings and focusing on the broader market direction. Whether applied to stocks, forex, commodities, or cryptocurrencies, the H-Infinity Volatility Filter helps traders and investors interpret market behavior with more confidence by offering a more refined view of price movements through its noise reduction techniques.
Disclaimer:
The H-Infinity Volatility Filter is designed to assist in market analysis by filtering out noise and volatility. It should not be used as the sole tool for making trading or investment decisions. Always incorporate other forms of analysis and risk management strategies. No statements or signals from this indicator or us should be considered financial advice. Past performance is not indicative of future results.
Wavetrend in Dynamic Zones with Kumo Implied VolatilityI was asked to do one of those, so here we go...
As always free and open source as it should be. Do not pay for such indicators!
A WaveTrend Indicator or also widely known as "Market Cipher" is an Indicator that is based on Moving Averages, therefore its an "lagging indicator". Lagging indicators are best used in combination with leading indicators. In this script the "leading indicator" component are Daily, Weekly or Monthly Pivots . These Pivots can be used as dynamic Support and Resistance , Stoploss, Take Profit etc.
This indicator combination is best used in larger timeframes. For lower timeframes you might need to change settings to your liking.
The general Wavetrend settings are the same that are used in Market Cipher, Market Liberator and such popular indicators.
What are these circles?
-These are the WaveTrend Divergences. Red for Regular-Bearish. Orange for Hidden-Bearish. Green for Regular-Bullish. Aqua for Hidden-Bullish.
What are these white, orange and aqua triangles?
-These are the WaveTrend Pivots. A Pivot counter was added. Every time a pivot is lower than the previous one, an orange triangle is printed, every time a pivot is higher than the previous one an aqua triangle is printed. That mimics a very common way Wavetrend is being used for trading when using those other paid Wavetrend indicators.
What are these Orange and Aqua Zones?
-These are Dynamic Zones based on the indicator itself, they offer more information than static zones. Of course static lines are also included and can be adjusted.
What are the lines between the waves?
-This is a Kumo Cloud Implied Volatility indicator. It is color coded and can be used to indicate if a major market move/bottom/top happened.
What are those numbers on the right?
-The first number is a Bollinger Band indicator that shows if said Bollinger Band is in a state of Oversold/Overbought, the second number is the actual Bollinger Band Width that indicates if the Bollinger Band squeezes, normally that happens right before the market makes an explosive move.
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.
Adaptive Jurik Filter Volatility Bands [Loxx]Adaptive Jurik Filter Volatility Bands uses Jurik Volty and Adaptive, Double Jurik Filter Moving Average (AJFMA) to derive Jurik Filter smoothed volatility channels around an Adaptive Jurik Filter Moving Average. Bands are placed at 1, 2, and 3 deviations from the core basline.
What is Jurik Volty?
One of the lesser known qualities of Juirk smoothing is that the Jurik smoothing process is adaptive. "Jurik Volty" (a sort of market volatility ) is what makes Jurik smoothing adaptive. The Jurik Volty calculation can be used as both a standalone indicator and to smooth other indicators that you wish to make adaptive.
What is the Jurik Moving Average?
Have you noticed how moving averages add some lag (delay) to your signals? ... especially when price gaps up or down in a big move, and you are waiting for your moving average to catch up? Wait no more! JMA eliminates this problem forever and gives you the best of both worlds: low lag and smooth lines.
Ideally, you would like a filtered signal to be both smooth and lag-free. Lag causes delays in your trades, and increasing lag in your indicators typically result in lower profits. In other words, late comers get what's left on the table after the feast has already begun.
That's why investors, banks and institutions worldwide ask for the Jurik Research Moving Average ( JMA ). You may apply it just as you would any other popular moving average. However, JMA's improved timing and smoothness will astound you.
What is adaptive Jurik volatility?
One of the lesser known qualities of Juirk smoothing is that the Jurik smoothing process is adaptive. "Jurik Volty" (a sort of market volatility ) is what makes Jurik smoothing adaptive. The Jurik Volty calculation can be used as both a standalone indicator and to smooth other indicators that you wish to make adaptive.
What is an adaptive cycle, and what is Ehlers Autocorrelation Periodogram Algorithm?
From his Ehlers' book Cycle Analytics for Traders Advanced Technical Trading Concepts by John F. Ehlers , 2013, page 135:
"Adaptive filters can have several different meanings. For example, Perry Kaufman’s adaptive moving average ( KAMA ) and Tushar Chande’s variable index dynamic average ( VIDYA ) adapt to changes in volatility . By definition, these filters are reactive to price changes, and therefore they close the barn door after the horse is gone.The adaptive filters discussed in this chapter are the familiar Stochastic , relative strength index ( RSI ), commodity channel index ( CCI ), and band-pass filter.The key parameter in each case is the look-back period used to calculate the indicator. This look-back period is commonly a fixed value. However, since the measured cycle period is changing, it makes sense to adapt these indicators to the measured cycle period. When tradable market cycles are observed, they tend to persist for a short while.Therefore, by tuning the indicators to the measure cycle period they are optimized for current conditions and can even have predictive characteristics.
The dominant cycle period is measured using the Autocorrelation Periodogram Algorithm. That dominant cycle dynamically sets the look-back period for the indicators. I employ my own streamlined computation for the indicators that provide smoother and easier to interpret outputs than traditional methods. Further, the indicator codes have been modified to remove the effects of spectral dilation.This basically creates a whole new set of indicators for your trading arsenal."
Included
- UI options to shut off colors and bands
Index Reversal Range with Volatility Index or VIXWhat is the Indicator?
• The indicator is a visualization of maximum price in which the respective index can go up to in comparison with it's Volatility Index or VIX.
Who to use?
• Intraday
• Swing
• Position
• Long term Investors
• Futures
• Options
• Portfolio Managers
• Mutual Fund Managers
• Index Traders
• Volatility based Traders
• Long term Investors and Options Traders gets the maximum benefit
What timeframe to use?
• 1 Year: Position & Investors
• 6 Months: Position & Investors
• 3 Months: Swing & Position
• 1 Month: Swing & Position
• 1 Week: Swing
• 1 Day: Swing
• 1 Hour: Intraday & Swing
What are Upper and Lower lines?
• Upper Line: If the index price reach closer to the Upper line there is a high chance of reversal to Bearish trend.
• Lower Line: If the index price reach closer to the Lower line there is a high chance of reversal to Bullish trend.
• This need to be confirmed with multiple levels like Daily, Weekly, Monthly etc.
How to use?
• If the price reach closer to that level there is a high chance of reversal from the current trend.
• To identify the reversal zone of the index.
• To identify the trend.
• Option Traders can Sell a Call or Put Option from that level.
• Long term Investors, Position or Swing traders can plan for a Long entry.
• Intraday traders can use lower timeframes to do the same.
Indicator Menu
• Input VIX: Identify the VIX Symbol of your Index and type it in the box.
• For example for NIFTY Index chart type INDIAVIX in the box.
• Choose multiple timeframes according to your convenience.
How to turn on indicator Name and Value labels?
• Right side of the screen >
• Right click on the Price scale >
• Labels > Indicators and financial name labels, Indicators and financial value labels
Further Reading:
• Various videos and reading materials are available about this method.
