CCT Volatility Index

📘 CCT Volatility Index
The CCT Volatility Index is a refined adaptation of the LS Volatility Index, originally presented by Brazilian traders Alexandre Wolwacz (Stormer), Fabrício Lorenz, and Fábio Figueiredo (Vlad). This implementation respects the core logic of the original concept but introduces two important enhancements:

Bollinger Band Width Percentage (BBWP)
Average True Range (ATR)

These are incorporated into the traditional formula (price deviation from a moving average divided by historical volatility), producing a normalized and responsive oscillator.

🧠 Conceptual Summary
This is a volatility indicator, not a directional trend tool. It measures the degree of price dispersion and tension in the market. It can be applied in two primary contexts:

🔁 Reversal Scenarios
When the index approaches extreme levels (near 100), it may signal exhaustion of volatility and potential mean reversion, especially if price is far from the moving average (SMA21 by default).



📈 Trend Continuation
If price stays near the average and the index maintains an elevated or rising profile, it may suggest trend acceptance with ongoing momentum. In this case, volatility expansion aligns with continuation.


🎯 Strategy Guidelines

• Trigger points may come from the index crossing its own moving average (white line), either as a breakout or via retest confirmation.
  

• Overlay colors identify BBWP compression/expansion zones:
  

• - Blue: BBWP is 2% above its historical mean.
  

• - Red: BBWP is 98% above.
  

These zones can help identify breakout setups or mean-reverting conditions.

📊 Info Panel
The indicator includes a dynamic panel showing:

• The current price
  

• The moving average used as reference
  

• The percentage deviation between them
  

This allows you to evaluate if the asset is currently "stretched" or "fair" under current volatility.

⚠️ Disclaimer
This tool is for educational and informational purposes only. It does not constitute investment advice and should not be used in isolation. Always combine it with other tools, market context, and proper risk management.