Legend : - When line touches or crosses red band it is Top signal (Williams Vix Fix) - When line touches or crosses blue band it is Bottom signal (Williams Vix Fix) - Red dot at the top of indicator is a Top signal (Relative Volatility Index) - Blue dot at the top of indicator is a Bottom signal (Relative Volatility Index) - Gray dot at the bottom of indicator is a Squeeze signal
This is an attempt to make use of the main features of all 4 of these very popular Volatility tools : - Williams Vix Fix + Bollinger Bands (as per Larry Williams idea, link ) - Relative Volatility Index (RVI) - The crossing of Keltner Channel by the Bollinger Bands (Squeeze)
The goal is to find the best tool to find bottoms and top relative to volatility . This is a simple combination, but I find it very useful personally (no need to reinvent the wheel, just need to find what works best)
The idea is that Williams Vix Fix + Bollinger Bands already give the main volatility bottom and top (Bottom are more accurate). So instead of trying to modify it, I chose to compliment it by mapping with points when the Relative Volatility Index (RVI) reached the top/bottom thresholds (red dot means top and blue dot means bottom). That way we can easily see when both indicators find a top or bottom relative to volatility (of course this needs to be then confirmed with a momentum indicator rally).
In addition, I added the squeeze because this quickly shows the potential breakouts.
For ideas on how to continue this work, it would be very interesting to be able to create a probability of a bottom and top relative to volatility using the Williams Vix Fix + Bollinger Bands and "Relative Volatility Index" signals as both work well and give top or bottom the other doesn't see.
릴리즈 노트
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Added the option to plot 'Half Squeeze' in purple (bottom location), which is when a Bollinger Band crosses only 1 Keltner Channel (upper/lower) It is off by default but it can be turned on as it is also a sign of Moving Average constriction and a possible breakout.
릴리즈 노트
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Updated Chart to make things clearer.
릴리즈 노트
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Corrected the Bollinger Band standard deviation bug from original Squeeze script.
@sufficientSucc98523, Williams Vix Fix is famous theory and Squeeze is a known phenomenon of the market They have been both backtested by people so many times it is impossible to count.