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Normalized Volatility

OVERVIEW
The Normalized Volatility indicator is a technical indicator that gauges the amount of volatility currently present in the market, relative to the average volatility in the market. The purpose of this indicator is to filter out with-trend signals during ranging/non-trending/consolidating conditions.
CONCEPTS
This indicator assists traders in capitalizing on the assumption that trends are more likely to start during periods of high volatility compared to periods of low volatility. This is because high volatility indicates that there are bigger players currently in the market, which is necessary to begin a sustained trending move.
So, to determine whether the current volatility is "high", it is compared to an average volatility for however number of candles back the user specifies.
If the current volatility is greater than the average volatility, it is reasonable to assume we are in a high-volatility period. Thus, this is the ideal time to enter a trending trade due to the assumption that trends are more likely to start during these high-volatility periods.
HOW DO I READ THIS INDICATOR
When the column's color is red, don't take any trend trades since the current volatility is less than the average volatility experienced in the market.
When the column's color is green, take all valid with-trend trades since the current volatility is greater than the average volatility experienced in the market.
The Normalized Volatility indicator is a technical indicator that gauges the amount of volatility currently present in the market, relative to the average volatility in the market. The purpose of this indicator is to filter out with-trend signals during ranging/non-trending/consolidating conditions.
CONCEPTS
This indicator assists traders in capitalizing on the assumption that trends are more likely to start during periods of high volatility compared to periods of low volatility. This is because high volatility indicates that there are bigger players currently in the market, which is necessary to begin a sustained trending move.
So, to determine whether the current volatility is "high", it is compared to an average volatility for however number of candles back the user specifies.
If the current volatility is greater than the average volatility, it is reasonable to assume we are in a high-volatility period. Thus, this is the ideal time to enter a trending trade due to the assumption that trends are more likely to start during these high-volatility periods.
HOW DO I READ THIS INDICATOR
When the column's color is red, don't take any trend trades since the current volatility is less than the average volatility experienced in the market.
When the column's color is green, take all valid with-trend trades since the current volatility is greater than the average volatility experienced in the market.
오픈 소스 스크립트
진정한 트레이딩뷰 정신에 따라 이 스크립트 작성자는 트레이더가 기능을 검토하고 검증할 수 있도록 오픈소스로 공개했습니다. 작성자에게 찬사를 보냅니다! 무료로 사용할 수 있지만 코드를 다시 게시할 경우 하우스 룰이 적용된다는 점을 기억하세요.
면책사항
이 정보와 게시물은 TradingView에서 제공하거나 보증하는 금융, 투자, 거래 또는 기타 유형의 조언이나 권고 사항을 의미하거나 구성하지 않습니다. 자세한 내용은 이용 약관을 참고하세요.
오픈 소스 스크립트
진정한 트레이딩뷰 정신에 따라 이 스크립트 작성자는 트레이더가 기능을 검토하고 검증할 수 있도록 오픈소스로 공개했습니다. 작성자에게 찬사를 보냅니다! 무료로 사용할 수 있지만 코드를 다시 게시할 경우 하우스 룰이 적용된다는 점을 기억하세요.
면책사항
이 정보와 게시물은 TradingView에서 제공하거나 보증하는 금융, 투자, 거래 또는 기타 유형의 조언이나 권고 사항을 의미하거나 구성하지 않습니다. 자세한 내용은 이용 약관을 참고하세요.