ATR Band, Stop loss , Take Profit Lines, and Pip Distance# ATR Band, Take Profit Lines, and Pip Distance Indicator
This indicator helps traders identify potential stop loss and take profit levels using Average True Range (ATR) bands and custom multipliers. It provides a visual representation of these levels and calculates the pip distance to stop loss, aiding in risk management and trade planning.
## Key Features:
- ATR-based upper and lower bands for potential stop loss levels
- Two take profit levels above and below the ATR bands
- Customizable ATR period and multipliers for bands and take profit levels
- Pip distance calculation to stop loss levels
- Adjustable colors for all elements
## How to Use:
1. The ATR bands (blue and red lines) suggest potential stop loss levels.
2. Take profit levels are shown as green lines above and below the ATR bands.
3. Labels display the pip distance from the current or last close to the stop loss levels.
## Customization:
- Adjust the ATR period and multipliers to fit your trading style
- Customize colors for better visibility on your chart
- Choose between current candle or last close for pip distance calculation
Remember, this indicator is for informational purposes only. Always manage your risk carefully and consider using it in conjunction with other analysis tools and your trading strategy.
Good luck with your trading!
볼래틸리티
Dynamic Supertrend1. Indicator Overview:
This indicator is designed to plot dynamic support and resistance lines based on the Supertrend strategy, incorporating volatility through the Average True Range (ATR). The indicator changes direction when the price crosses certain thresholds, generating buy and sell signals. It also highlights the prevailing trend on the chart and can trigger alerts when a trend shift occurs.
2. Key Features:
ATR-Based Trend Calculation:
The script uses the Average True Range (ATR) to adjust the distance between the Supertrend line and the price. This ensures that the indicator adapts to market volatility.
The trend is determined by comparing the closing price to upper and lower boundaries, which are calculated by adding or subtracting a multiple of ATR to a source price (typically the average of the high and low prices).
Volatility Filter:
The script includes a function to check if the market is volatile by measuring the standard deviation of the closing price over the past 14 periods. This can potentially be used to conditionally enable or disable signals based on volatility.
Buy and Sell Signals:
When the price crosses above the Supertrend line, it indicates the start of an uptrend, triggering a "Buy" signal.
Conversely, when the price crosses below the Supertrend line, it signals a downtrend, triggering a "Sell" signal.
Both signals can be displayed on the chart with optional shapes (circles or arrows) and labels.
Highlighting Current Trend:
You can choose to highlight the trend with color shading. The areas above the price line are shaded green during an uptrend, while the areas below are shaded red during a downtrend. The highlighting is controlled through an input switch.
Customizable Inputs:
The script allows users to adjust the ATR period and multiplier, as well as control whether to show buy/sell signals and highlight trends.
The source price used for calculations can also be customized, providing flexibility for different market conditions.
Alerts for Trading Opportunities:
Alerts are configured to notify the user of key events:
When the Supertrend changes direction (from uptrend to downtrend, or vice versa).
When a buy or sell signal is generated.
3. Code Structure:
Input Settings: Users can customize the base ATR period, the multiplier for ATR, and control the display of signals and highlighting features.
Trend Calculation Logic: The code determines the uptrend and downtrend by comparing the current price against dynamic ATR-based thresholds. It ensures that trends persist until price action confirms a change.
Plotting and Signals: Plots the trend lines based on whether the trend is up or down. It also provides visual cues for buy and sell signals with circles and optional arrows/labels on the chart.
Alert System: Three alert conditions are defined: buy signal, sell signal, and a general trend direction change, allowing users to set up real-time notifications for trading actions.
4. Use Case:
This script is particularly useful for traders who:
Rely on trend-following strategies and want to enter trades based on price action.
Need visual confirmation of market direction changes.
Prefer to automate their trading signals with real-time alerts.
Want to adjust the sensitivity of the indicator by tweaking the ATR multiplier and period settings to suit different market conditions.
Overall, this dynamic Supertrend indicator can be a powerful tool for both manual and automated trading setups, offering flexibility and clarity in identifying trend shifts.
Standard Deviation-Based Fibonacci Band by zdmre This indicator is designed to better understand market dynamics by focusing on standard deviation and the Fibonacci sequence. This indicator includes the following components to assist investors in analyzing price movements:
Weighted Moving Average (WMA) : The indicator creates a central band by utilizing the weighted moving average of standard deviation. WMA provides a more current and accurate representation by giving greater weight to recent prices. This central band offers insights into the general trend of the market, helping to identify potential buying and selling opportunities.
Fibonacci Bands : The Fibonacci bands located above and below the central band illustrate potential support and resistance levels for prices. These bands enable investors to pinpoint areas where the price may exhibit indecisiveness. When prices move within these bands, it may be challenging for investors to discern the market's preferred direction.
Indecisiveness Representation : When prices fluctuate between the Fibonacci bands, they may reflect a state of indecisiveness. This condition is critical for identifying potential reversal points and trend changes. Investors can evaluate these periods of indecisiveness to develop suitable buying and selling strategies.
This indicator is designed to assist investors in better analyzing market trends and supporting their decision-making processes. The integration of standard deviation and the Fibonacci sequence offers a new perspective on understanding market movements.
#DYOR
The Bar Counter Trend Reversal Strategy [TradeDots]Overview
The Bar Counter Trend Reversal Strategy is designed to identify potential counter-trend reversal points in the market after a series of consecutive rising or falling bars.
By analyzing price movements in conjunction with optional volume confirmation and channel bands (Bollinger Bands or Keltner Channels), this strategy aims to detect overbought or oversold conditions where a trend reversal may occur.
🔹How it Works
Consecutive Price Movements
Rising Bars: The strategy detects when there are a specified number of consecutive rising bars (No. of Rises).
Falling Bars: Similarly, it identifies a specified number of consecutive falling bars (No. of Falls).
Volume Confirmation (Optional)
When enabled, the strategy checks for increasing volume during the consecutive price movements, adding an extra layer of confirmation to the potential reversal signal.
Channel Confirmation (Optional)
Channel Type: Choose between Bollinger Bands ("BB") or Keltner Channels ("KC").
Channel Interaction: The strategy checks if the price interacts with the upper or lower channel lines: For short signals, it looks for price moving above the upper channel line. For long signals, it looks for price moving below the lower channel line.
Customization:
No. of Rises/Falls: Set the number of consecutive bars required to trigger a signal.
Volume Confirmation: Enable or disable volume as a confirmation factor.
Channel Confirmation: Enable or disable channel bands as a confirmation factor.
Channel Settings: Adjust the length and multiplier for the Bollinger Bands or Keltner Channels.
Visual Indicators:
Entry Signals: Triangles plotted on the chart indicate potential entry points:
Green upward triangle for long entries.
Red downward triangle for short entries.
Channel Bands: The upper and lower bands are plotted for visual reference.
Strategy Parameters:
Initial Capital: $10,000.
Position Sizing: 80% of equity per trade.
Commission: 0.01% per trade to simulate realistic trading costs.
🔹Usage
Set up the number of Rises/Falls and choose whether if you want to use channel indicators and volume as the confirmation.
Monitor the chart for triangles indicating potential entry points.
Consider the context of the overall market trend and other technical factors.
Backtesting and Optimization:
Use TradingView's Strategy Tester to evaluate performance.
Adjust parameters to optimize results for different market conditions.
🔹 Considerations and Recommendations
Risk Management:
The strategy does not include built-in stop-loss or take-profit levels. It's recommended to implement your own risk management techniques.
Market Conditions:
Performance may vary in different market environments. Testing and adjustments are advised when applying the strategy to new instruments or timeframes.
No Guarantee of Future Results:
Past performance is not indicative of future results. Always perform due diligence and consider the risks involved in trading.
Market Volatility Key: CHOP, ATR, VIX & 10Y BondThis script builds upon existing market analysis tools by providing a comprehensive dashboard that combines the Choppiness Index (CHOP), Average True Range (ATR) with a user-selectable timeframe, VIX (Volatility Index), and the 10-year US Treasury bond price in a compact tile format. The color-coded key provides quick visual cues for market conditions—highlighting whether the market is trending or consolidating—allowing traders to make informed decisions quickly.
For example, when trading the Nasdaq (NQ), you might use this indicator to help manage your scalping trades. If you trade on a 10-minute chart but set the ATR timeframe to 1 minute, it helps identify whether there is enough price movement to justify entering a trade. If the ATR is less than 10, it suggests there's not enough range for scalping opportunities, and you may choose to stay out of the trade.
This expanded indicator integrates and enhances existing concepts to deliver a well-rounded view of volatility, trend strength, and market conditions all in one glance, making it an essential tool for both trend-following and scalping strategies.
Asymmetric volatilityThe "Asymmetric Volatility" indicator is designed to visualize the differences in volatility between upward and downward price movements of a selected instrument. It operates on the principle of analyzing price movements over a specified time period, with particular focus on the symmetrical evaluation of both price rises and falls.
User Parameters:
- Length: This parameter specifies the number of bars (candles) used to calculate the average volatility. The larger the value, the longer the time period, and the smoother the volatility data will be.
- Source: This represents the input data for the indicator calculations. By default, the close value of each bar is used, but the user can choose another data source (such as open, high, low, or any custom value).
Operational Algorithm:
1. Movement Calculation:
- UpMoves: Computed as the positive difference between the current bar value and the previous bar value, if it is greater than zero.
- DownMoves: Computed as the positive difference between the previous bar value and the current bar value, if it is greater than zero.
2. Volatility Calculation:
- UpVolatility: This is the arithmetic mean of the UpMoves values over the specified period.
- DownVolatility: This is the arithmetic mean of the DownMoves values over the specified period.
3. Graphical Representation:
- The indicator displays two plots: upward and downward volatility, represented by green and red lines, respectively.
- The background color changes based on which volatility is dominant: a green background indicates that upward volatility prevails, while a red background indicates downward volatility.
The indicator allows traders to quickly assess in which direction the market is more volatile at the moment, which can be useful for making trading decisions and evaluating the current market situation.
Crypto Volatility Bitcoin Correlation Strategy Description:
The Crypto Volatility Bitcoin Correlation Strategy is designed to leverage market volatility specifically in Bitcoin (BTC) using a combination of volatility indicators and trend-following techniques. This strategy utilizes the VIXFix (a volatility indicator adapted for crypto markets) and the BVOL7D (Bitcoin 7-Day Volatility Index from BitMEX) to identify periods of high volatility, while confirming trends with the Exponential Moving Average (EMA). These components work together to offer a comprehensive system that traders can use to enter positions when volatility and trends are aligned in their favor.
Key Features:
VIXFix (Volatility Index for Crypto Markets): This indicator measures the highest price of Bitcoin over a set period and compares it with the current low price to gauge market volatility. A rise in VIXFix indicates increasing market volatility, signaling that large price movements could occur.
BVOL7D (Bitcoin 7-Day Volatility Index): This volatility index, provided by BitMEX, measures the volatility of Bitcoin over the past 7 days. It helps traders monitor the recent volatility trend in the market, particularly useful when making short-term trading decisions.
Exponential Moving Average (EMA): The 50-period EMA acts as a trend indicator. When the price is above the EMA, it suggests the market is in an uptrend, and when the price is below the EMA, it suggests a downtrend.
How It Works:
Long Entry: A long position is triggered when both the VIXFix and BVOL7D indicators are rising, signaling increased volatility, and the price is above the 50-period EMA, confirming that the market is trending upward.
Exit: The strategy exits the position when the price crosses below the 50-period EMA, which signals a potential weakening of the uptrend and a decrease in volatility.
This strategy ensures that traders only enter positions when the volatility aligns with a clear trend, minimizing the risk of entering trades during periods of market uncertainty.
Testing and Timeframe:
This strategy has been tested on Bitcoin using the daily timeframe, which provides a longer-term perspective on market trends and volatility. However, users can adjust the timeframe according to their trading preferences. It is crucial to note that this strategy does not include comprehensive risk management, aside from the exit condition when the price crosses below the EMA. Users are strongly advised to implement their own risk management techniques, such as setting appropriate stop-loss levels, to safeguard their positions during high volatility periods.
Utility:
The Crypto Volatility Bitcoin Correlation Strategy is particularly well-suited for traders who aim to capitalize on the high volatility often seen in the Bitcoin market. By combining volatility measurements (VIXFix and BVOL7D) with a trend-following mechanism (EMA), this strategy helps identify optimal moments for entering and exiting trades. This approach ensures that traders participate in potentially profitable market moves while minimizing exposure during times of uncertainty.
Use Cases:
Volatility-Based Entries: Traders looking to take advantage of market volatility spikes will find this strategy useful for timing entry points during market swings.
Trend Confirmation: By using the EMA as a confirmation tool, traders can avoid entering trades that go against the trend, which can result in significant losses during volatile market conditions.
Risk Management: While the strategy exits when price falls below the EMA, it is important to recognize that this is not a full risk management system. Traders should use caution and integrate additional risk measures, such as stop-losses and position sizing, to better manage potential losses.
How to Use:
Step 1: Monitor the VIXFix and BVOL7D indicators. When both are rising and the Bitcoin price is above the EMA, the strategy will trigger a long entry, indicating that the market is experiencing increased volatility with a confirmed uptrend.
Step 2: Exit the position when the price drops below the 50-period EMA, signaling that the trend may be reversing or weakening, reducing the likelihood of continued upward price movement.
This strategy is open-source and is intended to help traders navigate volatile market conditions, particularly in Bitcoin, using proven indicators for volatility and trend confirmation.
Risk Disclaimer:
This strategy has been tested on the daily timeframe of Bitcoin, but users should be aware that it does not include built-in risk management except for the below-EMA exit condition. Users should be extremely cautious when using this strategy and are encouraged to implement their own risk management, such as using stop-losses, position sizing, and setting appropriate limits. Trading involves significant risk, and this strategy does not guarantee profits or prevent losses. Past performance is not indicative of future results. Always test any strategy in a demo environment before applying it to live markets.
Rolling VWAPGuide for Traders
What is the Rolling VWAP?
The Volume Weighted Average Price (VWAP) is a key indicator used by traders to assess the average price of an asset, weighted by volume over a specified period. Unlike a simple moving average, the VWAP accounts for trading volume, making it a more accurate reflection of price action and market sentiment.
The Rolling VWAP in this script dynamically updates based on a user-defined period, allowing traders to view the average price over a chosen number of bars. This is particularly useful for identifying trends and potential entry or exit points in the market.
Key Benefits of Using Rolling VWAP
Better Market Insight: VWAP provides insight into where most trading is occurring, helping you gauge the strength of a price move.
Support and Resistance Levels: It often acts as dynamic support or resistance, signaling areas where price might reverse.
Trend Confirmation: A rising VWAP suggests a bullish trend, while a falling VWAP indicates a bearish trend.
Informed Entry/Exit Decisions: Use the VWAP to find entry points below it in an uptrend or exit points above it in a downtrend.
How to Use this Script:
Custom Period Input:
You can modify the "VWAP Period" to adjust the number of bars considered in the rolling calculation.
The default period is 14 bars, but you can set it based on your strategy (e.g., shorter for intraday trading, longer for swing trading).
Chart Interpretation
Bullish Signals: When the price is above the VWAP line, it suggests upward momentum, and you may consider buying opportunities.
Bearish Signals: When the price is below the VWAP, it indicates downward momentum, and you may consider selling or shorting opportunities.
Reversion to VWAP: Prices often revert to the VWAP after extended moves away from it, offering potential trade setups.
Combine with Other Indicators:
Momentum Indicators: Use with RSI, MACD, or moving averages for confirmation.
Volume Analysis: VWAP works well when combined with volume indicators to assess if a breakout is supported by high trading volume.
Customization:
Traders can customize the script's period and plot color to fit their charting preferences.
Practical Tips:
Intraday Traders: Use shorter periods (e.g., 5 or 10) to capture VWAP trends in fast-moving markets.
Swing Traders: Use longer periods (e.g., 50 or 100) to assess longer-term price and volume trends.
By integrating this Rolling VWAP into your strategy, you can better understand where the majority of trading volume has occurred, allowing you to make more informed decisions in your trading process.
ATR Bands with ATR Cross + InfoTableOverview
This Pine Script™ indicator is designed to enhance traders' ability to analyze market volatility, trend direction, and position sizing directly on their TradingView charts. By plotting Average True Range (ATR) bands anchored at the OHLC4 price, displaying crossover labels, and providing a comprehensive information table, this tool offers a multifaceted approach to technical analysis.
Key Features:
ATR Bands Anchored at OHLC4: Visual representation of short-term and long-term volatility bands centered around the average price.
OHLC4 Dotted Line: A dotted line representing the average of Open, High, Low, and Close prices.
ATR Cross Labels: Visual cues indicating when short-term volatility exceeds long-term volatility and vice versa.
Information Table: Displays real-time data on market volatility, calculated position size based on risk parameters, and trend direction relative to the 20-period Smoothed Moving Average (SMMA).
Purpose
The primary purpose of this indicator is to:
Assess Market Volatility: By comparing short-term and long-term ATR values, traders can gauge the current volatility environment.
Determine Optimal Position Sizing: A calculated position size based on user-defined risk parameters helps in effective risk management.
Identify Trend Direction: Comparing the current price to the 20-period SMMA assists in determining the prevailing market trend.
Enhance Decision-Making: Visual cues and real-time data enable traders to make informed trading decisions with greater confidence.
How It Works
1. ATR Bands Anchored at OHLC4
Average True Range (ATR) Calculations
Short-Term ATR (SA): Calculated over a 9-period using ta.atr(9).
Long-Term ATR (LA): Calculated over a 21-period using ta.atr(21).
Plotting the Bands
OHLC4 Dotted Line: Plotted using small circles to simulate a dotted line due to Pine Script limitations.
ATR(9) Bands: Plotted in blue with semi-transparent shading.
ATR(21) Bands: Plotted in orange with semi-transparent shading.
Overlap: Bands can overlap, providing visual insights into changes in volatility.
2. ATR Cross Labels
Crossover Detection:
SA > LA: Indicates increasing short-term volatility.
Detected using ta.crossover(SA, LA).
A green upward label "SA>LA" is plotted below the bar.
SA < LA: Indicates decreasing short-term volatility.
Detected using ta.crossunder(SA, LA).
A red downward label "SA LA, then the market is considered volatile.
Display: Shows "Yes" or "No" based on the comparison.
b. Position Size Calculation
Risk Total Amount: User-defined input representing the total capital at risk.
Risk per 1 Stock: User-defined input representing the risk associated with one unit of the asset.
Purpose: Helps traders determine the appropriate position size based on their risk tolerance and current market volatility.
c. Is Price > 20 SMMA?
SMMA Calculation:
Calculated using a 20-period Smoothed Moving Average with ta.rma(close, 20).
Logic: If the current close price is above the SMMA, the trend is considered upward.
Display: Shows "Yes" or "No" based on the comparison.
How to Use
Step 1: Add the Indicator to Your Chart
Copy the Script: Copy the entire Pine Script code into the TradingView Pine Editor.
Save and Apply: Save the script and click "Add to Chart."
Step 2: Configure Inputs
Risk Parameters: Adjust the "Risk Total Amount" and "Risk per 1 Stock" in the indicator settings to match your personal risk management strategy.
Step 3: Interpret the Visuals
ATR Bands
Width of Bands: Wider bands indicate higher volatility; narrower bands indicate lower volatility.
Band Overlap: Pay attention to areas where the blue and orange bands diverge or converge.
OHLC4 Dotted Line
Serves as a central reference point for the ATR bands.
Helps visualize the average price around which volatility is measured.
ATR Cross Labels
"SA>LA" Label:
Indicates short-term volatility is increasing relative to long-term volatility.
May signal potential breakout or trend acceleration.
"SA 20 SMMA?
Use this to confirm trend direction before entering or exiting trades.
Practical Example
Imagine you are analyzing a stock and notice the following:
ATR(9) Crosses Above ATR(21):
A green "SA>LA" label appears.
The info table shows "Yes" for "Is ATR-based price volatile."
Position Size:
Based on your risk parameters, the position size is calculated.
Price Above 20 SMMA:
The info table shows "Yes" for "Is price > 20 SMMA."
Interpretation:
The market is experiencing increasing short-term volatility.
The trend is upward, as the price is above the 20 SMMA.
You may consider entering a long position, using the calculated position size to manage risk.
Customization
Colors and Transparency:
Adjust the colors of the bands and labels to suit your preferences.
Risk Parameters:
Modify the default values for risk amounts in the inputs.
Moving Average Period:
Change the SMMA period if desired.
Limitations and Considerations
Lagging Indicators: ATR and SMMA are lagging indicators and may not predict future price movements.
Market Conditions: The effectiveness of this indicator may vary across different assets and market conditions.
Risk of Overfitting: Relying solely on this indicator without considering other factors may lead to suboptimal trading decisions.
Conclusion
This indicator combines essential elements of technical analysis to provide a comprehensive tool for traders. By visualizing ATR bands anchored at the OHLC4, indicating volatility crossovers, and providing real-time data on position sizing and trend direction, it aids in making informed trading decisions.
Whether you're a novice trader looking to understand market volatility or an experienced trader seeking to refine your strategy, this indicator offers valuable insights directly on your TradingView charts.
Code Summary
The script is written in Pine Script™ version 5 and includes:
Calculations for OHLC4, ATRs, Bands, SMMA:
Uses built-in functions like ta.atr() and ta.rma() for calculations.
Plotting Functions:
plotshape() for the OHLC4 dotted line.
plot() and fill() for the ATR bands.
Crossover Detection:
ta.crossover() and ta.crossunder() for detecting ATR crosses.
Labeling Crossovers:
label.new() to place informative labels on the chart.
Information Table Creation:
table.new() to create the table.
table.cell() to populate it with data.
Acknowledgments
ATR and SMMA Concepts: Built upon standard technical analysis concepts widely used in trading.
Pine Script™: Leveraged the capabilities of Pine Script™ version 5 for advanced charting and analysis.
Note: Always test any indicator thoroughly and consider combining it with other forms of analysis before making trading decisions. Trading involves risk, and past performance is not indicative of future results.
Happy Trading!
Probability GoldThis is a leading indicator designed for the 1 minute chart, and while it works on any time frame, I haven't tested it's practicality outside of the 1 minute chart. This uses historical data and applies statistical analysis to key metrics of momentum. The data is filtered by "time of day" as well as "day of week", but be mindful that the "day of week" option reduces your total amount of data points, and will not work well on new stocks. This indicator also uses binary/gaussian distribution concepts to create channels and pockets which act as seemingly magnetic forces. This is all speculative. Do not use this indicator on its own. This is intended to do nothing more than to show you whether if, on average, the historical data under the same time and rate of change conditions, goes for or against your trade. Use it in conjunction with your most trusted and classic indicators. This can act as a small nudge, letting you now the chances of what you have already established in your mind. This is HIGHLY experimental, made by an amateur, and also very pretty. So, enjoy!
Trading Ranges + ZScoreOverview
The "Trading Ranges + ZScore" script is a versatile technical indicator developed for TradingView. This tool combines two powerful concepts—price ranges and Z-Score analysis—to help traders identify potential trend reversals, overbought/oversold conditions, and trend strength. The script dynamically calculates price ranges based on recent price action and utilizes Z-Score to detect deviations from a statistical norm, providing valuable insights for decision-making in both ranging and trending markets.
Features
Price Ranges: Calculates dynamic upper and lower price boundaries based on volatility and market structure.
Z-Score Oscillator: A statistical measure that highlights overbought/oversold conditions based on the deviation from a moving average.
Trend Detection: Identifies trend continuation or reversal points by comparing current price action against historical levels.
Customizable Alerts: Generates visual signals (diamonds and X crosses) for potential long/short entries and exits.
Visual Representation: Colors the bars based on Z-Score and trend direction, enhancing the chart’s readability and signal clarity.
Customizable Parameters: The script allows users to fine-tune perception length, analysis period, factor multiplier, and oscillator thresholds to fit different market conditions.
Key Input Parameters
Perception: The length used for calculating highest/lowest price points (default: 20).
Analysis: The length used for calculating the moving average and volatility (default: 100).
Factor: A multiplier to adjust the width of the price ranges (default: 2.0).
Oscillator Threshold: The overbought/oversold threshold for the Z-Score oscillator (default: 70).
Trend Filter: A boolean switch that filters signals based on trend direction.
Fill Zones: Option to color-fill between price levels when certain conditions are met.
Bullish/Bearish/Neutral Colors: Customizable colors for bullish, bearish, and neutral signals.
How It Works
Price Ranges Calculation:
The script calculates five levels: two upper boundaries, the average price level, and two lower boundaries. These levels are based on the highest/lowest prices over a user-defined period and adjusted by volatility (Average True Range).
When the price crosses either of these levels, it suggests a significant change in market direction, potentially indicating a trend reversal.
Z-Score Oscillator:
The Z-Score is a statistical measurement of a price's position relative to its moving average. The indicator calculates two variations:
Z-Score based on the absolute difference between the price and the moving average.
Z-Score based on standard deviation.
These oscillators help detect extreme conditions where the price is likely to revert (overbought/oversold zones).
Trend Detection and Signals:
The indicator generates potential buy/sell signals when the price crosses the predefined levels or based on the fast Z-Score crossing the overbought/oversold thresholds.
Weak long/short signals are shown when the faster Z-Score oscillator reaches extreme levels but trend filters are applied to avoid noise.
Bar Colors and Signal Shapes:
Bar colors change dynamically to reflect the trend direction and Z-Score conditions. Signals for potential trades are displayed using diamonds and X crosses, making it easy to spot opportunities visually.
Visuals and Plots
Bar Colors: Changes the bar color based on Z-Score and trend direction.
Z-Score Plot: Displays two Z-Score oscillators, the standard and a faster one for detecting quicker price deviations.
Overbought/Oversold Zones: Highlighted by upper and lower thresholds of the Z-Score.
Long/Short Signals: Uses diamond-shaped markers for strong long/short signals and X-shaped markers for weaker signals.
Dynamic Range Lines: Plots lines for key price levels (upper/lower boundaries, mid-range) based on the dynamic range calculations.
Usage Guide
Identify Overbought/Oversold Conditions: Look for the Z-Score reaching extreme positive or negative values. When combined with trend signals, these conditions often point to a potential reversal.
Follow the Trend: Use the trend filter option to focus only on trades in the direction of the prevailing trend, reducing false signals in ranging markets.
Watch for Range Breakouts: Pay attention to the upper and lower boundaries. Price crossing these levels often signals the start of a new trend or a major price movement.
Adjust Parameters: Tailor the perception length, analysis length, and multiplier to suit different asset classes or timeframes.
Customization
You can adjust the key parameters to adapt the indicator to different markets or personal trading preferences:
- Perception & Analysis Lengths: Control the sensitivity of the price range calculations.
- Factor Multiplier: Adjusts the width of the ranges, with higher values indicating larger zones.
- Oscillator Threshold: Modify the overbought/oversold levels to suit different market volatility.
- Trend Filter: Toggle on/off to focus on trend-following strategies or range-bound conditions.
- Visual Options: Customize colors for bullish, bearish, and neutral signals, as well as enable/disable the zone fills.
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.
Normalized ZScoreThe Normalized ZScore Indicator is a dynamic tool designed to help traders identify potential overbought and oversold conditions in the market. It calculates the ZScore of the price movement relative to a moving average, allowing users to track the deviation of price from its average and normalize it within a fixed range for clearer signal generation. The indicator can be used for both trend-following and mean-reversion strategies, offering customizable options for various trading styles.
How It Works
This indicator works by calculating two distinct ZScores:
Standard ZScore: Based on the price deviation from a simple moving average (SMA).
Fast ZScore: Calculated using price deviation from the SMA combined with standard deviation over a shorter period.
The ZScore values are normalized between -100 and 100, allowing for consistent and comparable signal outputs across different assets and timeframes.
Key Features
Customizable MA and Deviation Lengths: Adjust the length of the moving average (MA Length) and deviation (Deviation Length) to suit your trading needs.
Overbought/Oversold Zones: The indicator highlights areas where the market may be overbought or oversold using a user-defined threshold.
Color-Coded Signals: The ZScore plot changes color based on market conditions:
Positive ZScore (overbought) = Customizable Positive Color
Neutral ZScore = Customizable Middle Color
Negative ZScore (oversold) = Customizable Negative Color
Trend Filtering Option: The built-in trend filter helps to enhance signal accuracy by factoring in the overall market trend.
Signal Shapes:
Diamonds: Indicate strong long or short entry signals when ZScore crosses predefined thresholds.
X-Crosses: Indicate weaker long or short entry signals for users preferring caution in their trades.
Inputs
MA Length: Set the length of the moving average used for calculating the ZScore.
Deviation Length: Set the length used for deviation calculations.
OBS Threshold: Set the threshold for defining overbought and oversold zones.
Trend Filter: Enable or disable the trend filter for added signal confidence.
Color Settings: Customize the colors for positive, middle, and negative ZScore values.
Visual Features
ZScore Plot: A smooth and color-coded line plot to visualize the ZScore in real-time.
Overbought/Oversold Zones: Visualized with horizontal lines and fill colors to highlight extremes.
Bar Coloring: Bars change colors when ZScore exceeds overbought/oversold zones, enhancing visual clarity.
Signal Markers: Diamond or X-shaped markers appear on the chart to indicate potential trade signals.
How to Use
Entry Points: Look for the ZScore to cross into overbought/oversold regions for potential reversal trades. Use the diamonds and X-crosses for long and short entries.
Trend Filter: Enable the trend filter to avoid taking trades against the overall market trend.
Customize Settings: Adjust the lengths and colors to match your specific trading strategy and timeframe.
Tandem Oscillator | viResearchTandem Oscillator | viResearch
Conceptual Foundation and Innovation
The "Tandem Oscillator" script provides an enhanced way to analyze market momentum by utilizing both the Relative Strength Index (RSI) and standard deviation to detect shifts in price movement. The oscillator creates dynamic upper and lower boundaries around the RSI, helping traders identify potential overbought and oversold conditions more effectively. By applying a tandem approach—combining RSI and standard deviation—the script offers a more refined and sensitive momentum indicator, ideal for spotting trend reversals and market entries.
This approach allows traders to capture moments of extreme market behavior, giving them an edge in timing trades.
Technical Composition and Calculation
The script is structured around several key technical components that make it an efficient tool for momentum detection:
RSI Calculation: The RSI is calculated using a user-defined lookback period to assess the strength of recent price movements. This forms the core of the oscillator and helps determine overbought or oversold conditions.
Tandem Bands: The standard deviation is applied to the RSI to create dynamic upper and lower bands, providing a more adaptive boundary to track market extremes.
Dual Scoring Systems: Two separate systems are used to score the RSI and its lower band. These systems evaluate the RSI against thresholds and calculate scores to detect potential momentum shifts.
Threshold-Based Trend Detection: The script compares the scores against user-defined thresholds to trigger long or short signals. Crossovers of these thresholds help identify potential trend reversals or confirmations.
Features and User Inputs
The "Tandem Oscillator" offers various input parameters that traders can adjust to fine-tune the indicator for their strategies:
Lookback Period: Defines the number of bars used in the RSI calculation, allowing traders to adjust how responsive the indicator is to price movements.
Tandem Length: Controls the length of the standard deviation applied to the RSI, which determines the sensitivity of the tandem bands.
Thresholds: User-defined thresholds that determine when the oscillator identifies potential uptrends or downtrends, triggering buy or sell signals.
Bar Coloring: Optional settings to color bars based on detected trends, offering traders visual cues for easier identification of trading opportunities.
Alerts: The script includes alert conditions for both long and short signals, ensuring traders are notified of key market events even when they're not actively monitoring the charts.
Practical Applications
The "Tandem Oscillator" script is an adaptable tool suited for traders looking to capture momentum shifts and improve the timing of their trades. This indicator is particularly effective in:
Identifying Overbought and Oversold Conditions: The tandem bands provide dynamic thresholds, helping traders detect when the market is stretched in either direction, signaling potential reversal points.
Spotting Trend Reversals: The dual scoring system and threshold detection help traders identify moments when market momentum is about to shift, offering a more precise entry or exit point.
Improving Trade Timing: By tracking the RSI and its deviation, traders can gain a clearer picture of when the market is reaching an extreme, allowing them to enter or exit trades at optimal times.
Advantages and Strategic Value
The "Tandem Oscillator" script stands out due to its ability to dynamically adjust to market conditions using both RSI and ATR. This reduces the likelihood of false signals and provides a more nuanced understanding of market momentum. The customizable inputs make the indicator versatile, enabling traders to adapt it to different assets and timeframes based on their specific trading goals.
Summary and Usage Tips
The "Tandem Oscillator" script is a powerful tool for detecting market momentum and trend shifts by combining RSI with standard deviation bands. Its customizable parameters and dual scoring system make it a valuable addition to any trader's toolkit. By incorporating this script into your strategy, you can enhance your ability to identify overbought or oversold conditions and time your trades more effectively.
Be sure to adjust the lookback period and tandem length according to the asset you are trading, and use the alert system to stay informed of potential opportunities without needing constant chart monitoring.
As always, backtesting and forward-testing are important to understand how the script performs under different market conditions. Past performance is not indicative of future results.
Options Oscillator [Lite] IVRank, IVx, Call/Put Volatility Skew The first TradingView indicator that provides REAL IVRank, IVx, and CALL/PUT skew data based on REAL option chain for 5 U.S. market symbols.
🔃 Auto-Updating Option Metrics without refresh!
🍒 Developed and maintained by option traders for option traders.
📈 Specifically designed for TradingView users who trade options.
🔶 Ticker Information:
This 'Lite' indicator is currently only available for 5 liquid U.S. market smbols : NASDAQ:TSLA AMEX:DIA NASDAQ:AAPL NASDAQ:AMZN and NYSE:ORCL
🔶 How does the indicator work and why is it unique?
This Pine Script indicator is a complex tool designed to provide various option metrics and visualization tools for options market traders. The indicator extracts raw options data from an external data provider (ORATS), processes and refines the delayed data package using pineseed, and sends it to TradingView, visualizing the data using specific formulas (see detailed below) or interpolated values (e.g., delta distances). This method of incorporating options data into a visualization framework is unique and entirely innovative on TradingView.
The indicator aims to offer a comprehensive view of the current state of options for the implemented instruments, including implied volatility (IV), IV rank (IVR), options skew, and expected market movements, which are objectively measured as detailed below.
The options metrics we display may be familiar to options traders from various major brokerage platforms such as TastyTrade, IBKR, TOS, Tradier, TD Ameritrade, Schwab, etc.
🟨 The following data is displayed in the oscillator 🟨
We use Tastytrade formulas, so our numbers mostly align with theirs!
🔶 𝗜𝗩𝗥𝗮𝗻𝗸
The Implied Volatility Rank (IVR) helps options traders assess the current level of implied volatility (IV) in comparison to the past 52 weeks. IVR is a useful metric to determine whether options are relatively cheap or expensive. This can guide traders on whether to buy or sell options.
IV Rank formula = (current IV - 52 week IV low) / (52 week IV high - 52 week IV low)
IVRank is default blue and you can adjust their settings:
🔶 𝗜𝗩𝘅 𝗮𝘃𝗴
The implied volatility (IVx) shown in the option chain is calculated like the VIX. The Cboe uses standard and weekly SPX options to measure expected S&P 500 volatility. A similar method is used for calculating IVx for each expiration cycle.
We aggregate the IVx values for the 35-70 day monthly expiration cycle, and use that value in the oscillator and info panel.
We always display which expiration the IVx values are averaged for when you hover over the IVx cell.
IVx main color is purple, but you can change the settings:
🔹IVx 5 days change %
We are also displaying the five-day change of the IV Index (IVx value). The IV Index 5-Day Change column provides quick insight into recent expansions or decreases in implied volatility over the last five trading days.
Traders who expect the value of options to decrease might view a decrease in IVX as a positive signal. Strategies such as Strangle and Ratio Spread can benefit from this decrease.
On the other hand, traders anticipating further increases in IVX will focus on the rising IVX values. Strategies like Calendar Spread or Diagonal Spread can take advantage of increasing implied volatility.
This indicator helps traders quickly assess changes in implied volatility, enabling them to make informed decisions based on their trading strategies and market expectations.
Important Note:
The IVx value alone does not provide sufficient context. There are stocks that inherently exhibit high IVx values. Therefore, it is crucial to consider IVx in conjunction with the Implied Volatility Rank (IVR), which measures the IVx relative to its own historical values. This combined view helps in accurately assessing the significance of the IVx in relation to the specific stock's typical volatility behavior.
This indicator offers traders a comprehensive view of implied volatility, assisting them in making informed decisions by highlighting both the absolute and relative volatility measures.
🔶 𝗖𝗔𝗟𝗟/𝗣𝗨𝗧 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 𝗦𝗸𝗲𝘄 𝗵𝗶𝘀𝘁𝗼𝗴𝗿𝗮𝗺
At TanukiTrade, Vertical Pricing Skew refers to the difference in pricing between put and call options with the same expiration date at the same distance (at tastytrade binary expected move). We analyze this skew to understand market sentiment. This is the same formula used by TastyTrade for calculations.
We calculate the interpolated strike price based on the expected move, taking into account the neighboring option prices and their distances. This allows us to accurately determine whether the CALL or PUT options are more expensive.
🔹 What Causes Pricing Skew? The Theory Behind It
The asymmetric pricing of PUT and CALL options is driven by the natural dynamics of the market. The theory is that when CALL options are more expensive than PUT options at the same distance from the current spot price, market participants are buying CALLs and selling PUTs, expecting a faster upward movement compared to a downward one .
In the case of PUT skew, it's the opposite: participants are buying PUTs and selling CALLs , as they expect a potential downward move to happen more quickly than an upward one.
An options trader can take advantage of this phenomenon by leveraging PUT pricing skew. For example, if they have a bullish outlook and both IVR and IVx are high and IV started decreasing, they can capitalize on this PUT skew with strategies like a jade lizard, broken wing butterfly, or short put.
🔴 PUT Skew 🔴
Put options are more expensive than call options, indicating the market expects a faster downward move (▽). This alone doesn't indicate which way the market will move (because nobody knows that), but the options chain pricing suggests that if the market moves downward, it could do so faster in velocity compared to a potential upward movement.
🔹 SPY PUT SKEW example:
If AMEX:SPY PUT option prices are 46% higher than CALLs at the same distance for the optimal next monthly expiry (DTE). This alone doesn't indicate which way the market will move (because nobody knows that), but the options chain pricing suggests that if the market moves downward, it could do so 46% faster in velocity compared to a potential upward movement
🟢 CALL Skew 🟢
Call options are more expensive than put options, indicating the market expects a faster upward move (△). This alone doesn't indicate which way the market will move (because nobody knows that), but the options chain pricing suggests that if the market moves upward, it could do so faster in velocity compared to a potential downward movement.
🔹 INTC CALL SKEW example:
If NASDAQ:INTC CALL option prices are 49% higher than PUTs at the same distance for the optimal next monthly expiry (DTE). This alone doesn't indicate which way the market will move (because nobody knows that), but the options chain pricing suggests that if the market moves upward, it could do so 49% faster in velocity compared to a potential downward movement .
🔶 USAGE example:
The script is compatible with our other options indicators.
For example: Since the main metrics are already available in this Options Oscillator, you can hide the main IVR panel of our Options Overlay indicator, freeing up more space on the chart. The following image shows this:
🔶 ADDITIONAL IMPORTANT COMMENTS
🔹 Historical Data:
Yes, we only using historical internal metrics dating back to 2024-07-01, when the TanukiTrade options brand launched. For now, we're using these, but we may expand the historical data in the future.
🔹 What distance does the indicator use to measure the call/put pricing skew?:
It is important to highlight that this oscillator displays the call/put pricing skew changes for the next optimal monthly expiration on a histogram.
The Binary Expected Move distance is calculated using the TastyTrade method for the next optimal monthly expiration: Formula = (ATM straddle price x 0.6) + (1st OTM strangle price x 0.3) + (2nd OTM strangle price x 0.1)
We interpolate the exact difference based on the neighboring strikes at the binary expected move distance using the TastyTrade method, and compare the interpolated call and put prices at this specific point.
🔹 - Why is there a slight difference between the displayed data and my live brokerage data?
There are two reasons for this, and one is beyond our control.
◎ Option-data update frequency:
According to TradingView's regulations and guidelines, we can update external data a maximum of 5 times per day. We strive to use these updates in the most optimal way:
(1st update) 15 minutes after U.S. market open
(2nd, 3rd, 4th updates) 1.5–3 hours during U.S. market open hours
(5th update) 10 minutes before U.S. market close.
You don’t need to refresh your window, our last refreshed data-pack is always automatically applied to your indicator, and you can see the time elapsed since the last update at the bottom of the corner on daily TF.
◎ Brokerage Calculation Differences:
Every brokerage has slight differences in how they calculate metrics like IV and IVx. If you open three windows for TOS, TastyTrade, and IBKR side by side, you will notice that the values are minimally different. We had to choose a standard, so we use the formulas and mathematical models described by TastyTrade when analyzing the options chain and drawing conclusions.
🔹 - EOD data:
The indicator always displays end-of-day (EOD) data for IVR, IV, and CALL/PUT pricing skew. During trading hours, it shows the current values for the ongoing day with each update, and at market close, these values become final. From that point on, the data is considered EOD, provided the day confirms as a closed daily candle.
🔹 - U.S. market only:
Since we only deal with liquid option chains: this option indicator only works for the USA options market and do not include future contracts; we have implemented each selected symbol individually.
Disclaimer:
Our option indicator uses approximately 15min-3 hour delayed option market snapshot data to calculate the main option metrics. Exact realtime option contract prices are never displayed; only derived metrics and interpolated delta are shown to ensure accurate and consistent visualization. Due to the above, this indicator can only be used for decision support; exclusive decisions cannot be made based on this indicator. We reserve the right to make errors.This indicator is designed for options traders who understand what they are doing. It assumes that they are familiar with options and can make well-informed, independent decisions. We work with public data and are not a data provider; therefore, we do not bear any financial or other liability.
Options Oscillator [PRO] IVRank, IVx, Call/Put Volatility Skew𝗧𝗵𝗲 𝗳𝗶𝗿𝘀𝘁 𝗧𝗿𝗮𝗱𝗶𝗻𝗴𝗩𝗶𝗲𝘄 𝗶𝗻𝗱𝗶𝗰𝗮𝘁𝗼𝗿 𝘁𝗵𝗮𝘁 𝗽𝗿𝗼𝘃𝗶𝗱𝗲𝘀 𝗥𝗘𝗔𝗟 𝗜𝗩𝗥𝗮𝗻𝗸, 𝗜𝗩𝘅, 𝗮𝗻𝗱 𝗖𝗔𝗟𝗟/𝗣𝗨𝗧 𝘀𝗸𝗲𝘄 𝗱𝗮𝘁𝗮 𝗯𝗮𝘀𝗲𝗱 𝗼𝗻 𝗥𝗘𝗔𝗟 𝗼𝗽𝘁𝗶𝗼𝗻 𝗰𝗵𝗮𝗶𝗻 𝗳𝗼𝗿 𝗼𝘃𝗲𝗿 𝟭𝟲𝟱+ 𝗺𝗼𝘀𝘁 𝗹𝗶𝗾𝘂𝗶𝗱 𝗨.𝗦. 𝗺𝗮𝗿𝗸𝗲𝘁 𝘀𝘆𝗺𝗯𝗼𝗹𝘀
🔃 Auto-Updating Option Metrics without refresh!
🍒 Developed and maintained by option traders for option traders.
📈 Specifically designed for TradingView users who trade options.
🔶 Ticker Information:
This indicator is currently only available for over 165+ most liquid U.S. market symbols (eg. SP:SPX AMEX:SPY NASDAQ:QQQ NASDAQ:TLT NASDAQ:NVDA , etc.. ), and we are continuously expanding the compatible watchlist here: www.tradingview.com
🔶 How does the indicator work and why is it unique?
This Pine Script indicator is a complex tool designed to provide various option metrics and visualization tools for options market traders. The indicator extracts raw options data from an external data provider (ORATS), processes and refines the delayed data package using pineseed, and sends it to TradingView, visualizing the data using specific formulas (see detailed below) or interpolated values (e.g., delta distances). This method of incorporating options data into a visualization framework is unique and entirely innovative on TradingView.
The indicator aims to offer a comprehensive view of the current state of options for the implemented instruments, including implied volatility (IV), IV rank (IVR), options skew, and expected market movements, which are objectively measured as detailed below.
The options metrics we display may be familiar to options traders from various major brokerage platforms such as TastyTrade, IBKR, TOS, Tradier, TD Ameritrade, Schwab, etc.
🟨 The following data is displayed in the oscillator 🟨
We use Tastytrade formulas, so our numbers mostly align with theirs!
🔶 𝗜𝗩𝗥𝗮𝗻𝗸
The Implied Volatility Rank (IVR) helps options traders assess the current level of implied volatility (IV) in comparison to the past 52 weeks. IVR is a useful metric to determine whether options are relatively cheap or expensive. This can guide traders on whether to buy or sell options.
IV Rank formula = (current IV - 52 week IV low) / (52 week IV high - 52 week IV low)
IVRank is default blue and you can adjust their settings:
🔶 𝗜𝗩𝘅 𝗮𝘃𝗴
The implied volatility (IVx) shown in the option chain is calculated like the VIX. The Cboe uses standard and weekly SPX options to measure expected S&P 500 volatility. A similar method is used for calculating IVx for each expiration cycle.
We aggregate the IVx values for the 35-70 day monthly expiration cycle, and use that value in the oscillator and info panel.
We always display which expiration the IVx values are averaged for when you hover over the IVx cell.
IVx main color is purple, but you can change the settings:
🔹 IVx 5 days change %
We are also displaying the five-day change of the IV Index (IVx value). The IV Index 5-Day Change column provides quick insight into recent expansions or decreases in implied volatility over the last five trading days.
Traders who expect the value of options to decrease might view a decrease in IVX as a positive signal. Strategies such as Strangle and Ratio Spread can benefit from this decrease.
On the other hand, traders anticipating further increases in IVX will focus on the rising IVX values. Strategies like Calendar Spread or Diagonal Spread can take advantage of increasing implied volatility.
This indicator helps traders quickly assess changes in implied volatility, enabling them to make informed decisions based on their trading strategies and market expectations.
Important Note:
The IVx value alone does not provide sufficient context. There are stocks that inherently exhibit high IVx values. Therefore, it is crucial to consider IVx in conjunction with the Implied Volatility Rank (IVR), which measures the IVx relative to its own historical values. This combined view helps in accurately assessing the significance of the IVx in relation to the specific stock's typical volatility behavior.
This indicator offers traders a comprehensive view of implied volatility, assisting them in making informed decisions by highlighting both the absolute and relative volatility measures.
🔶 𝗖𝗔𝗟𝗟/𝗣𝗨𝗧 𝗣𝗿𝗶𝗰𝗶𝗻𝗴 𝗦𝗸𝗲𝘄 𝗵𝗶𝘀𝘁𝗼𝗴𝗿𝗮𝗺
At TanukiTrade, Vertical Pricing Skew refers to the difference in pricing between put and call options with the same expiration date at the same distance (at tastytrade binary expected move). We analyze this skew to understand market sentiment. This is the same formula used by TastyTrade for calculations.
We calculate the interpolated strike price based on the expected move, taking into account the neighboring option prices and their distances. This allows us to accurately determine whether the CALL or PUT options are more expensive.
🔹 What Causes Pricing Skew? The Theory Behind It
The asymmetric pricing of PUT and CALL options is driven by the natural dynamics of the market. The theory is that when CALL options are more expensive than PUT options at the same distance from the current spot price, market participants are buying CALLs and selling PUTs, expecting a faster upward movement compared to a downward one .
In the case of PUT skew, it's the opposite: participants are buying PUTs and selling CALLs , as they expect a potential downward move to happen more quickly than an upward one.
An options trader can take advantage of this phenomenon by leveraging PUT pricing skew. For example, if they have a bullish outlook and both IVR and IVx are high and IV started decreasing, they can capitalize on this PUT skew with strategies like a jade lizard, broken wing butterfly, or short put.
🔴 PUT Skew 🔴
Put options are more expensive than call options, indicating the market expects a faster downward move (▽). This alone doesn't indicate which way the market will move (because nobody knows that), but the options chain pricing suggests that if the market moves downward, it could do so faster in velocity compared to a potential upward movement.
🔹 SPY PUT SKEW example:
If AMEX:SPY PUT option prices are 46% higher than CALLs at the same distance for the optimal next monthly expiry (DTE). This alone doesn't indicate which way the market will move (because nobody knows that), but the options chain pricing suggests that if the market moves downward, it could do so 46% faster in velocity compared to a potential upward movement
🟢 CALL Skew 🟢
Call options are more expensive than put options, indicating the market expects a faster upward move (△). This alone doesn't indicate which way the market will move (because nobody knows that), but the options chain pricing suggests that if the market moves upward, it could do so faster in velocity compared to a potential downward movement.
🔹 INTC CALL SKEW example:
If NASDAQ:INTC CALL option prices are 49% higher than PUTs at the same distance for the optimal next monthly expiry (DTE). This alone doesn't indicate which way the market will move (because nobody knows that), but the options chain pricing suggests that if the market moves upward, it could do so 49% faster in velocity compared to a potential downward movement .
🔶 USAGE example:
The script is compatible with our other options indicators.
For example: Since the main metrics are already available in this Options Oscillator, you can hide the main IVR panel of our Options Overlay indicator, freeing up more space on the chart. The following image shows this:
🔶 ADDITIONAL IMPORTANT COMMENTS
🔹 Historical Data:
Yes, we only using historical internal metrics dating back to 2024-07-01, when the TanukiTrade options brand launched. For now, we're using these, but we may expand the historical data in the future.
🔹 What distance does the indicator use to measure the call/put pricing skew?:
It is important to highlight that this oscillator displays the call/put pricing skew changes for the next optimal monthly expiration on a histogram.
The Binary Expected Move distance is calculated using the TastyTrade method for the next optimal monthly expiration: Formula = (ATM straddle price x 0.6) + (1st OTM strangle price x 0.3) + (2nd OTM strangle price x 0.1)
We interpolate the exact difference based on the neighboring strikes at the binary expected move distance using the TastyTrade method, and compare the interpolated call and put prices at this specific point.
🔹 - Why is there a slight difference between the displayed data and my live brokerage data?
There are two reasons for this, and one is beyond our control.
◎ Option-data update frequency:
According to TradingView's regulations and guidelines, we can update external data a maximum of 5 times per day. We strive to use these updates in the most optimal way:
(1st update) 15 minutes after U.S. market open
(2nd, 3rd, 4th updates) 1.5–3 hours during U.S. market open hours
(5th update) 10 minutes before U.S. market close.
You don’t need to refresh your window, our last refreshed data-pack is always automatically applied to your indicator, and you can see the time elapsed since the last update at the bottom of the corner on daily TF.
◎ Brokerage Calculation Differences:
Every brokerage has slight differences in how they calculate metrics like IV and IVx. If you open three windows for TOS, TastyTrade, and IBKR side by side, you will notice that the values are minimally different. We had to choose a standard, so we use the formulas and mathematical models described by TastyTrade when analyzing the options chain and drawing conclusions.
🔹 - EOD data:
The indicator always displays end-of-day (EOD) data for IVR, IV, and CALL/PUT pricing skew. During trading hours, it shows the current values for the ongoing day with each update, and at market close, these values become final. From that point on, the data is considered EOD, provided the day confirms as a closed daily candle.
🔹 - U.S. market only:
Since we only deal with liquid option chains: this option indicator only works for the USA options market and do not include future contracts; we have implemented each selected symbol individually.
Disclaimer:
Our option indicator uses approximately 15min-3 hour delayed option market snapshot data to calculate the main option metrics. Exact realtime option contract prices are never displayed; only derived metrics and interpolated delta are shown to ensure accurate and consistent visualization. Due to the above, this indicator can only be used for decision support; exclusive decisions cannot be made based on this indicator. We reserve the right to make errors.This indicator is designed for options traders who understand what they are doing. It assumes that they are familiar with options and can make well-informed, independent decisions. We work with public data and are not a data provider; therefore, we do not bear any financial or other liability.
Trend, Momentum and Price value analysis Extended [deepakks444]Trend, Momentum, and Price Value Analysis Extended
This Pine Script™ indicator is designed to offer traders a comprehensive overview of price trends, momentum, and market strength through the use of several widely-recognized technical analysis tools. The indicator integrates multiple signals and plots directly on the chart, as well as a customizable table to help visually organize and interpret the data. Here’s an overview of the key features included:
Key Features:
VWAP (Volume-Weighted Average Price): Calculates the average price weighted by volume to give insight into whether the price is above or below the market's fair value.
Alligator Indicator: Uses a combination of three moving averages (jaw, teeth, and lips) to help identify trending conditions.
Supertrend: A trend-following indicator that signals potential buy or sell opportunities based on price movements relative to a dynamically calculated support/resistance line.
20-period Moving Average (MA): A basic moving average to smooth out price data and highlight the underlying trend.
MACD (Moving Average Convergence Divergence): Helps identify changes in the strength, direction, and momentum of a trend.
Volume with Moving Average: Compares current volume against its moving average to identify potential volume spikes.
RSI (Relative Strength Index): Measures the speed and change of price movements, signaling overbought or oversold conditions.
ADX (Average Directional Index): An indicator used to quantify trend strength, helping traders determine whether the market is trending or in a range.
Pivot Points: Calculates daily pivot points and identifies support and resistance levels based on price movements.
Bollinger Bands: A volatility indicator that uses standard deviation to highlight potential overbought or oversold conditions.
Customization Options:
Modify the length of the price and volume moving averages.
Adjust RSI thresholds for buy and sell signals.
Set the thresholds for ADX to differentiate between weak, average, and strong trends.
Toggle the visibility of the 20-period MA and Supertrend on the chart.
Choose to display the percentage difference between the current price and indicator values in the table.
Table Display:
The indicator includes a table that summarizes the status of all signals, showing:
Signal (Buy/Sell/Neutral): Based on each indicator's interpretation of price action.
Percentage Difference: Optional display of how far the price is from the reference level (e.g., the difference between the price and VWAP, Supertrend line, or Moving Average).
The table allows traders to quickly assess the current market conditions across several indicators in one place, making it easier to gauge overall market sentiment.
Signal Logic:
This indicator uses a scoring system to calculate the percentage of indicators signaling a buy or sell. If the buy or sell score reaches 70% or higher, the indicator will plot buy or sell signals on the chart. The combined signal logic is displayed in the table as "Buy," "Sell," or "No Signal," based on the majority of the contributing indicators.
Intended Use:
This tool is designed to assist traders in their technical analysis by consolidating multiple popular indicators into one script. It provides a clear visual representation of various market signals, helping traders to make informed decisions about potential trade entries and exits. However, this indicator is for educational purposes and should not be used as financial advice. Traders should always use proper risk management and conduct their own research before making any trading decisions.
Disclaimer: This script is for educational purposes only and does not constitute financial advice. Trading involves risk, and past performance of an indicator does not guarantee future results. Please use it alongside proper risk management practices.
RSI Pulsar [QuantraSystems]RSI Pulsar
Introduction
The RSI Pulsar is an advanced and multifaceted tool designed to cater to the varying needs of traders, from long-term swing traders to higher-frequency day traders. This indicator takes the Relative Strength Index (RSI) to new heights by combining several unique methodologies to provide clear, actionable signals across different market conditions. With its ability to analyze impulsive trend strength, volatility, and binary market direction, the RSI Pulsar offers a holistic view of the market that assists traders in identifying robust signals and rotational opportunities within a volatile market.
The integration of dynamic color coding further aids in quick visual assessments, allowing traders to adapt swiftly to changing market conditions, making the RSI Pulsar an essential component in the arsenal of modern traders aiming for precision and adaptability in their trading endeavors.
Legend
The RSI Pulsar encapsulates various modes tailored to diverse trading strategies. The different modes are the:
Impulse Mode:
Focuses on strong outperformance, ideal for capturing movements in highly dynamic tokens.
Trend Following Mode:
A classical perpetual trend-following approach and provides binary long and short signal classifications ideal for medium term swing trading.
Ribbon Mode:
Offers quicker signals that are also binary in nature. Perfect for a confirmation signal when building higher frequency day trading systems.
Volatility Spectrum:
This feature projects a visual 'cloud' representing volatility, which helps traders spot emerging trends and potential breakouts or reversals.
Compressed Mode:
A condensed view that displays all signals in a clean and space-efficient manner. It provides a clear summary of market conditions, ideal for traders who prefer a simplified overview.
Methodology
The RSI Pulsar is built on a foundation of dynamic RSI analysis, where the traditional RSI is enhanced with advanced moving averages and standard deviation calculations. Each mode within the RSI Pulsar is designed to cater to specific aspects of the market's behavior, making it a versatile tool allowing traders to select different modes based on their trading style and market conditions.
Impulse Mode:
This mode identifies strong outperformance in assets, making it ideal for asset rotation systems. It uses a combination of RSI thresholds and dynamic moving averages to pinpoint when an asset is not just trending positively, but doing so with significant strength.
This is in contrast to typical usage of a base RSI, where elevated levels usually signal overbought and oversold periods. The RSI Pulsar flips this logic, where more extreme values are actually interpreted as a strong trend.
Trend Following Mode:
Here, the RSI is compared to the midline (the default is level 50, but a dynamic midline can also be set), to determine the prevailing trend. This mode simplifies the trend-following process, providing clear bullish or bearish signals based on whether the RSI is above or below the midline - whether a fixed or dynamic level.
Ribbon Mode:
This mode employs a series of calculated values derived from modified Heikin-Ashi smoothing to create a "ribbon" that smooths out price action and highlights underlying trends. The Ribbon Mode is particularly useful for traders who need quick confirmations of trend reversals or continuations.
Volatility Spectrum:
The Volatility Spectrum takes a unique approach to measuring market volatility by analyzing the size and direction of Heikin-Ashi candles. This data is used to create a volatility cloud that helps traders identify when volatility is rising, falling, or neutral - allowing them to adjust their strategies accordingly.
When the signal line breaks above the cloud, it signals increasing upwards volatility. When it breaks below it signifies increasing downwards volatility.
This can be used to help identify strengthening and weakening trends, as well as imminent volatile periods, allowing traders to position themselves and adapt their strategies accordingly. This mode also works as a great volatility filter for shorter term day trading strategies. It is incredibly sensitive to volatility divergences, and can give additional insights to larger market turning points.
Compressed Mode:
In Compressed Mode, all the signals from the various modes are displayed in a simplified format, making it easy for traders to quickly assess the market's overall condition without needing to delve into the details of each mode individually. Perfect for only viewing the exact data you need when live trading, or back testing.
Case Study I:
Utilizing ALMA Impulse Mode in High-Volatility Environments
Here, the RSI Pulsar is configured with an RSI length of 9 and an ALMA length of 2 in Impulse Mode. The chart example shows how this setup can identify significant price movements, allowing traders to enter positions early and capture substantial price moves. Despite the fast settings resulting in occasional false signals, the indicator's ability to catch and ride out major trends more than compensates, making it highly effective in volatile environments.
This configuration is suitable for traders seeking to trade quick, aggressive movements without enduring prolonged drawdowns. In Impulse Mode, the RSI Pulsar seeks strong trending zones, providing actionable signals that allow for timely entries and exits.
Case Study II:
SMMA Trend Following Mode for Ratio Analysis
The RSI Pulsar in Trend Following mode, configured with the SMMA with default length settings. This setup is ideal for analyzing longer-term trends, particularly useful in cryptocurrency pairs or ratio charts, where it’s crucial to identify robust directional moves. The chart showcases strong trends in the Solana/Ethereum pair. The RSI Pulsar’s ability to smooth out price action while remaining responsive to trend changes makes it an excellent tool for capturing extended price moves.
The image highlights how the RSI Pulsar efficiently tracks the strength of two tokens against each other, providing clear signals when one asset begins to outperform the other. Even in volatile markets, the SMMA ensures that the signals are reliable, filtering out noise and allowing traders to stay in the trend longer without being shaken out by minor corrections. This approach is particularly effective in ratio trading in order to inform a longer term swing trader of the strongest asset out of a customized pair.
Case Study III:
Monthly Analysis with RSI Pulsar in Ribbon Mode
This case study demonstrates the versatility and reliability of the RSI Pulsar in Ribbon mode, applied to a monthly chart of Bitcoin with an RSI length of 8 and a TEMA length of 14. This setup highlights the indicator’s robustness across multiple timeframes, extending even to long-term analysis. The RSI Pulsar effectively smooths out noise while capturing significant trends, as seen during Bitcoin bull markets. The Ribbon mode provides a clear visual representation of momentum shifts, making it easier for traders to identify trend continuations and reversals with confidence.
Case Study IV:
Divergences and Continuations with the Volatility Spectrum
Identifying harmony/divergences can be hit-or-miss at times, but this unique analysis method definitely has its merits at times. The RSI Pulsar, with its Volatility Spectrum feature, is used here to identify critical moments where price action either aligns with or diverges from the underlying volatility. As seen in the Bitcoin chart (using default settings), the indicator highlights areas where price trends either continue in harmony with volatility or diverge, signaling potential reversals. This method, while not always perfect, provides significant insight during key turning points in the market.
The Volatility Spectrum's visual representation of rising and falling volatility, combined with divergence and harmony analysis, enables traders to anticipate significant shifts in market dynamics. In this case, multiple divergences correctly identified early trend reversals, while periods of harmony indicated strong trend continuations. While this method requires careful interpretation, especially during complex market conditions, it offers valuable signals that can be pivotal in making informed trading decisions, especially if combined with other forms of analysis it can form a critical component of an investing system.
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.
Adaptive SuperTrend Oscillator [AlgoAlpha]Adaptive SuperTrend Oscillator 🤖📈
Introducing the Adaptive SuperTrend Oscillator , an innovative blend of volatility clustering and SuperTrend logic designed to identify market trends with precision! 🚀 This indicator uses K-Means clustering to dynamically adjust volatility levels, helping traders spot bullish and bearish trends. The oscillator smoothly tracks price movements, adapting to market conditions for reliable signals. Whether you're scalping or riding long-term trends, this tool has got you covered! 💹✨
🔑 Key Features:
📊 Volatility Clustering with K-Means: Segments volatility into three levels (high, medium, low) using a K-Means algorithm for precise trend detection.
📈 Normalized Oscillator : Allows for customizable smoothing and normalization, ensuring the oscillator remains within a fixed range for easy interpretation.
🔄 Heiken Ashi Candles : Optionally visualize smoothed trends with Heiken Ashi-style candlesticks to better capture market momentum.
🔔 Alert System : Get notified when key conditions like trend shifts or volatility changes occur.
🎨 Customizable Appearance : Fully customizable colors for bullish/bearish signals, along with adjustable smoothing methods and lengths.
📚 How to Use:
⭐ Add the indicator to favorites by pressing the star icon. Customize settings to your preference:
👀 Watch the chart for trend signals and reversals. The oscillator will change color when trends shift, offering visual confirmation.
🔔 Enable alerts to be notified of critical trend changes or volatility conditions
⚙️ How It Works:
This script integrates SuperTrend with volatility clustering by analyzing ATR (Average True Range) to dynamically identify high, medium, and low volatility clusters using a K-Means algorithm . The SuperTrend logic adjusts based on the assigned volatility level, creating adaptive trend signals. These signals are then smoothed and optionally normalized for clearer visual interpretation. The Heiken Ashi transformation adds an additional layer of smoothing, helping traders better identify the market's true momentum. Alerts are set to notify users of key trend shifts and volatility changes, allowing traders to react promptly.
Implied Volatility WallsThe Implied Volatility Walls (IVW) indicator is a powerful and advanced trading tool designed to help traders identify key market zones where price may encounter significant resistance or support based on volatility. Using implied volatility, historical volatility, and machine learning models, IVW provides traders with a comprehensive understanding of market dynamics. This indicator is especially useful for those who wish to forecast volatility-driven price movements and adjust their trading strategies accordingly.
How the Implied Volatility Walls (IVW) Works:
The Implied Volatility Walls (IVW) indicator uses a combination of historical price data and advanced machine learning algorithms to calculate key volatility levels and forecast future market conditions. It tracks cumulative volatility, identifies support and resistance zones, and detects liquidation bubbles to highlight critical price areas.
The main concept behind this tool is that price tends to move most of the time by the same amount, making it possible to average the past maximum excursion in order to obtain a validated area where traders can be able to see clearly that the price is moving more than normal.
This indicator primarily focuses on:
1. Volatility Zones: Potential support and resistance levels based on implied and historical volatility.
2. Machine Learning Volatility Forecast: A machine learning model that predicts high, medium, or low volatility for future market conditions.
3. Liquidation Detection: Highlights key areas of potential forced liquidations, where market participants may be forced out of their positions, often leading to significant price movements.
4. Backtesting and Win Rate: The indicator continuously monitors how effective its volatility-based predictions are, offering insights into the performance of its predictions.
Key Features:
1. Volatility Tracking:
- The IVW indicator calculates cumulative volatility by analyzing the range between the high and low prices over time. It also tracks volatility percentiles and separates the market conditions into high, medium, or low volatility zones, enabling traders to gauge how volatile the market is.
2. Volatility Walls (Upper and Lower Zones):
- Upper Volatility Wall (Red Zones): Represent resistance levels where the price might encounter difficulty moving higher due to excess in volatility. This zone is calculated based on the chosen percentile in the settings.
- Lower Volatility Wall (Blue Zones): Represent support levels where price may find buying support.
- These walls help traders visualize potential zones where reversals or breakouts could occur based on volatility conditions.
3. Machine Learning Forecast:
- One of the standout features of the IVW indicator is its machine learning algorithm that estimates future volatility levels. It categorizes volatility into high, medium, and low based on recent data and provides forecasts on what the next market condition is likely to be.
- This forecast helps traders anticipate market conditions and adapt their strategies accordingly. It is displayed on the chart as "Exp. Vol", providing insight into the future expected volatility.
4. VIX Adjustments:
- The indicator can be adjusted using the well-known **VIX (Volatility Index)** to further refine its volatility predictions. This enables traders to incorporate market sentiment into their analysis, improving the accuracy of the predictions for different market conditions.
5. Liquidation Bubbles:
- The Liquidation Bubbles feature highlights areas where large forced selling or buying events may occur, which are usually accompanied by spikes in volatility and volume. These bubbles appear when price deviates significantly from moving averages with substantial volume increases, alerting traders to potential volatile moves.
- Red dots indicate likely forced liquidations on the upside, and blue dots indicate forced liquidations on the downside. These bubbles can help traders spot moments of market stress and potential price swings due to liquidations.
6. Dynamic Volatility Zones:
- IVW dynamically adjusts support and resistance levels as market conditions evolve. This allows traders to always have up-to-date and relevant information based on the latest volatility patterns.
7. Cumulative Volatility Histogram:
- At the bottom of the chart, the purple histogram represents cumulative volatility over time, giving traders a visual cue of whether volatility is building up or subsiding. This can provide early signals of market transitions from low to high volatility, aiding traders in timing their entries and exits more accurately.
8. Backtesting and Win Rate:
- The IVW indicator includes a backtesting function that monitors the success of its volatility predictions over a selected period. It shows a Win Rate (WR) percentage (with 33% meaning that the machine learning algorithm does not bring any edge), representing how often the indicator's predictions were correct. This metric is crucial for assessing the reliability of the model’s forecasts.
9. Opening Range:
- At the beginning of a new session, the indicator will plot two lines indicating the high and the low of the first candle of the new time frame chosen.
Chart Breakdown:
Below is a description of what users see when using the Implied Volatility Walls (IVW) indicator on the chart:
Volatility Walls:
- Red shaded zones at the top represent upper volatility walls (resistance zones), while blue shaded zones at the bottom represent lower volatility walls (support zones). These areas show where price is likely to react due to high or low volatility conditions.
Liquidation Bubbles:
- Red and blue dots plotted above and below the price represent **liquidation bubbles**, indicating moments of market stress where volatility and volume spikes may force market participants to exit positions.
Cumulative Volatility Histogram:
- The purple histogram at the bottom of the chart reflects the buildup of cumulative volatility over time. Higher bars suggest increased volatility, signaling the potential for large price movements, while smaller bars represent calmer market conditions.
Real-Time Support and Resistance Levels:
- Solid and dashed lines represent current and historical support and resistance levels, helping traders identify price zones that have historically acted as volatility-driven turning points.
Gradient Bar Colors:
- The price bars change color based on their proximity to the volatility walls, with different colors representing how close the price is to these key levels. This color gradient provides a quick visual cue of potential market turning points.
Data Tables Explained:
Table 1: **Volatility Information Table (Top Right Corner):
- EV: Expected Volatility (based on the VIX FIX calculation from Larry Williams).
- +V and -V: Represents the adjusted volatility for upward (+V) and downward (-V) movements.
- Exp. Vol: Shows the expected volatility condition for the next period (High, Medium, or Low) based on the machine learning algorithm.
- WR: The Win Rate based on the backtesting of previous volatility predictions (three outcomes, so base Win rate is 33%, and not 50%).
Table 2: Expected Cumulative Range (Top Right Corner of the separated pane):
- Exp. CR: Expected Cumulative Range based on a machine learning algorithm that calculate the most likely outcome (cumulative range) based on the past days and metrics.
How to Use the Indicator:
1. Identify Key Support and Resistance Levels:
- Use the upper (red) and lower (blue) volatility walls to identify zones where the price is likely to face resistance or support due to volatility dynamics.
2. Forecast Future Volatility:
- Pay attention to the Expected Vol field in the table to understand whether the machine learning model predicts high, medium, or low volatility for the next trading session.
3. Monitor Liquidation Bubbles:
- Watch for red and blue bubbles as they can signal significant market events where volatility and volume spikes may lead to sudden price reversals or continuations.
4. Use the Histogram to Gauge Market Conditions:
- The cumulative volatility histogram shows whether the market is entering a high or low volatility phase, helping you adjust your risk accordingly and making you able to identify the potential of the rest of the chosen session.
5. Backtesting Confidence:
- The Win Rate (WR) provides insight into how reliable the indicator’s predictions have been over the backtested period, giving you additional confidence in its future forecasts, remember that considering the 3 scenarios possible (high volatility, medium and low volatility), the standard win rate is 33%, and not 50%!.
Final Notes:
The Implied Volatility Walls (IVW) indicator is a powerful tool for volatility-based analysis, providing traders with real-time data on potential support and resistance levels, liquidation bubbles, and future market conditions. By leveraging a machine learning model for volatility forecasting, this tool helps traders stay ahead of the market’s volatility patterns and make informed decisions.
Disclaimer: This tool is for educational purposes only and should not be solely relied upon for trading decisions. Always perform your own research and risk management when trading.
Sector Daily Gain/Loss TableOverview: The "Sector Daily Gain/Loss Table" is a custom TradingView indicator designed to display the daily percentage changes in selected cryptocurrency sectors. This indicator provides a comprehensive view of the performance of various cryptocurrencies organized into specific sectors, helping traders and analysts to make informed decisions based on sector performance.
Key Features:
Dynamic Data Retrieval: The indicator retrieves daily closing prices for multiple cryptocurrencies across different exchanges (Binance and Bybit) using the request.security function. This allows users to monitor real-time price movements.
Sectors Covered:
BTC Sector: Includes Bitcoin (BTC).
ETH Sector: Includes Ethereum (ETH).
RWA Sector: Comprises various assets such as OM, ONDO, POLYX, SNX, PENDLE, and HIFI.
L1/L2 Sector: Features major Layer 1 and Layer 2 solutions including ETH, BNB, SOL, XRP, TON, ADA, AVAX, DOT, SUI, APT, ICP, POL, and more.
MEME Sector: Showcases popular meme coins like DOGE, SHIB, PEPE, WIF, BONK, FLOKI, ORDI, BOME, and NEIRO, along with MEW and POPCAT from Bybit.
AI Sector: Highlights AI-related tokens such as TAO, FET, GRT, THETA, WLD, and TURBO.
DEFI Sector: Displays decentralized finance projects including UNI, AAVE, INJ, RUNE, MKR, JUP, LDO, PENDLE, CAKE, LUNA, RAY, OSMO, KAVA, and RSR.
Average Gain/Loss Calculations: For each sector, the indicator calculates the average percentage change in price based on the included cryptocurrencies, offering insights into sector-wide performance trends.
Table Display: The performance metrics are presented in a clean and organized table format on the TradingView chart, providing easy access to vital information for traders.
User-Friendly Design: The table is designed to be visually appealing and informative, with color coding and clear labeling for each sector and its corresponding percentage change.
Usage: Traders can utilize this indicator to quickly assess the performance of various cryptocurrency sectors and make informed trading decisions based on the daily changes in sector performance.
ATR with Donchian Channels and SMAsThis script combines the Average True Range (ATR), Donchian Channels, and Simple Moving Averages (SMAs) to provide a comprehensive tool for volatility and trend analysis.
Key Components:
ATR Calculation: The ATR is used to measure market volatility. It is calculated as a moving average of the true range over a specified length, which you can customize using different smoothing methods: RMA, SMA, EMA, or WMA. ATR helps identify periods of high and low volatility, giving insights into potential breakout or consolidation phases in the market.
Donchian Channels on ATR: The Donchian Channels are calculated based on the highest and lowest values of the ATR over a user-defined period. The upper and lower bands provide a volatility range, and the middle line represents the average of the two. This can help visualize the range of market volatility and detect possible trend reversals or continuations.
SMAs on ATR: Two Simple Moving Averages (SMA) are applied to the ATR values. These SMAs act as a smoothed version of the ATR, providing additional insight into volatility trends. By adjusting the length of these SMAs, you can track short-term and long-term volatility movements, helping in decision-making for potential entries and exits.
Inputs:
ATR Length: Set the length for calculating the ATR.
Smoothing Method: Choose from RMA, SMA, EMA, or WMA for smoothing the ATR calculation.
Donchian Channel Length: Set the length for calculating the highest and lowest ATR values for Donchian Channels.
SMA Lengths: Two adjustable lengths for applying SMAs to the ATR.
Visualization:
ATR Plot: The ATR is plotted in red, allowing you to see the market's volatility at a glance.
Donchian Channels: Blue lines represent the upper and lower bands, while the green line represents the middle line of the Donchian Channels, helping you visualize the volatility range.
SMAs: Two SMAs (green and orange) are plotted to smooth out the ATR and identify trends in volatility.
Use Cases:
Breakout Detection: High ATR values breaking out of the Donchian Channels may signal increased volatility and a potential breakout.
Trend Analysis: SMAs on ATR help smooth volatility trends, aiding in determining if the market is entering a more volatile or stable period.
Stop-Loss Placement: ATR and Donchian Channels can be used to set dynamic stop-loss levels based on market volatility.
This script is versatile and can be used across different asset classes, such as stocks, forex, crypto, and commodities. It is especially useful for traders who want to incorporate volatility into their trading strategies for better risk management and trend detection.
