Volatility Momentum Score | Lyro RSVolatility Momentum Score | Lyro RS
Overview
The Volatility Momentum Score (VMS) combines price movement and volatility into a single, easy-to-read signal. Using z-scores, standard deviation bands, and flexible display modes, it helps traders identify trends, overbought/oversold conditions, and potential reversals quickly and effectively.
Key Features
Price + Volatility Blend
Tracks price action and volatility with separate z-scores and merges them into a unified momentum score.
Standard Deviation Bands
Upper and lower bands highlight extreme readings.
Adjustable multipliers allow for fine-tuning sensitivity.
Two Signal Modes
Trend Mode: Plots “Long” and “Short” signals when momentum crosses bands.
Reversion Mode: Colors the chart background when the score indicates stretched conditions.
Overbought & Oversold Alerts
▲ markers indicate oversold conditions.
▼ markers indicate overbought conditions.
Custom Colors
Four preset color themes or fully customizable bullish/bearish colors.
Clear Visuals
Dynamic line coloring based on momentum.
Candles recolored at signal points.
Background shading for quick visual assessment.
How It Works
Calculates z-scores for both price and volatility.
Blends the z-scores into a single average score.
Compares the score against dynamic upper and lower bands.
Triggers signals, markers, or background shading depending on the chosen display mode.
Practical Use
Ride trends: Follow Trend Mode signals to align with momentum.
Spot reversals: Watch ▲ and ▼ markers when markets are overextended.
Stay aware: Background shading highlights potentially overheated conditions.
Customization
Set lookback lengths for price, volatility, and bands.
Adjust band multipliers for more or less sensitive signals.
Choose between Trend or Reversion mode based on trading style.
Select color themes or create custom palettes.
⚠️ Disclaimer
This indicator is a technical analysis tool and does not guarantee results. It should be used alongside other methods and proper risk management. The creators are not responsible for any financial decisions based on its signals.
M-oscillator
MomentumQ DashMomentumQ Dash – Multi-Timeframe & Watchlist Dashboard
The MomentumQ Dash is a professional dashboard-style indicator designed to help traders quickly evaluate market conditions across multiple timeframes and assets.
Unlike single-signal tools, MomentumQ Dash consolidates market regime, buy/sell conditions, and pre-signal alerts into an easy-to-read table, allowing traders to stay focused on actionable setups without flipping between charts.
All signals displayed in MomentumQ Dash are derived from the MomentumQ Oscillator (MoQ Osci) , our proprietary tool designed to identify momentum shifts and adaptive buy/sell conditions. By integrating these signals into a dashboard format, MomentumQ Dash provides a structured overview of the market that is both comprehensive and easy to interpret.
A unique advantage of this tool is the dual-table system:
A timeframe table that tracks the current symbol across five user-defined timeframes.
A watchlist table that monitors up to five different assets on the same timeframe.
This combination gives traders a complete market overview at a glance, supporting both intraday and higher-timeframe strategies.
Key Features
1. Multi-Timeframe Signal Dashboard
Tracks buy, sell, pre-buy, and pre-sell conditions for up to 5 configurable timeframes.
Highlights market regime (Bull/Bear) with background colors for quick visual recognition.
Displays the last detected signal and how many bars ago it occurred.
2. Watchlist Asset Table
Monitor up to 5 custom symbols (e.g., indices, commodities, crypto pairs) in one view.
Independent timeframe selection for the watchlist table.
Clean symbol display with exchange prefixes automatically removed.
3. Flexible Layout & Theme Integration
Choice of table position (Top Right, Middle Right, Bottom Right) for each table.
Light/Dark mode setting for seamless chart integration.
Compact, minimal design to avoid clutter.
4. MoQ Osci Signal Engine
Signals are powered by the MomentumQ Oscillator (MoQ Osci), which uses adaptive momentum analysis.
Identifies early pre-signals (potential setup zones) as well as confirmed buy/sell events.
Helps traders recognize transitions in market structure without lagging indicators.
How It Works
Timeframe Analysis
The indicator calculates MoQ Osci signals on each timeframe.
When price deviates beyond upper/lower adaptive thresholds, buy/sell signals are generated.
Pre-signals are displayed when price approaches these zones, offering early alerts.
Trend Regime Detection
Regime is derived from MoQ Osci’s momentum distance relative to its adaptive mean.
Bull regime = positive momentum bias; Bear regime = negative momentum bias.
This provides a simple but reliable context for trade direction.
Watchlist Tracking
Signals are calculated identically for each custom symbol selected by the user.
Results are presented in a compact table, making it easy to spot alignment or divergence across markets.
How to Use This Indicator
Use the Timeframe Table to align intraday setups with higher-timeframe context.
Monitor the Watchlist Table to track correlated assets (e.g., SPX, NDX, VIX, Oil, Gold).
Pay attention to pre-buy / pre-sell warnings for early setup confirmation.
Use the “Last” column to quickly check the most recent signal and its timing.
Combine with your existing price action strategy to validate entries and exits.
This indicator works on all TradingView markets: Forex, Stocks, Crypto, Futures, and Commodities.
Why Is This Indicator Valuable?
Provides a complete dashboard view of market conditions in one place.
Combines multi-timeframe confirmation with multi-asset monitoring .
Signals are based on the proven MoQ Osci tool , ensuring consistency across strategies.
Saves time and reduces the need to constantly switch charts.
Fully customizable to match any trading workflow.
Example Trading Approaches
1. Multi-Timeframe Alignment
Wait for a buy signal on the lower timeframe (e.g., 15m) while the higher timeframe (1h/4h) is in Bull regime.
Enter long with higher-timeframe confirmation, improving trade probability.
2. Cross-Market Confirmation
If SPX and NDX both trigger sell signals while VIX shows a buy, this may confirm risk-off sentiment.
Use this confluence to support trade decisions in equities or correlated markets.
3. Pre-Signal Monitoring
Watch for PB (Pre-Buy) or PS (Pre-Sell) warnings before confirmed signals.
These can highlight potential breakout or reversal zones before they occur.
Disclaimer
This indicator is a technical analysis tool and does not guarantee profits.
It should be used as part of a complete trading plan that includes risk management.
Past performance is not indicative of future results.
Bullish_Mayank_entry_Indicator with AlertsThis indiucator gives buy signal alerts using EMAs, RSI & Weighted Moving Average of RSI & also multiframe analysis
Sentinela - PullbackSentinel - Pullback
Description:
This indicator is designed to act as a "sentinel," patiently waiting to identify high-probability pullback and reversal opportunities within trending markets. Instead of flooding the chart with excessive signals, the Sentinel focuses on key moments of exhaustion, offering cleaner and more objective entry points.
Key Features
Flexible Oscillator Choice: Select the engine for the signals according to your preference:
Stoch RSI: For a faster and more sensitive momentum reading.
Standard Stochastic: For a more classic and smoother analysis.
Confluence Mode: The most rigorous mode, which only considers a signal valid if both oscillators are in an exhaustion zone simultaneously.
Dual Signal Patterns: The indicator looks for two types of candlestick patterns in overbought/oversold zones:
Simple Pullback: A candle that forms a higher low (for longs) or a lower high (for shorts) than the previous candle, signaling a loss of corrective momentum.
Reversal Engulfing: A candle that sweeps the liquidity below/above the previous candle and reverses strongly, closing beyond its opposite end. A powerful ignition signal.
Smart Consecutive Signal Filter: This is the core of the indicator. After a first valid signal, it ignores subsequent signals until the price "renews" the low (in an oversold zone) or the high (in an overbought zone). This re-arms the search for a new, qualified entry and prevents "signal spam" during extended bottoms or tops.
Optional Trend Filter: Utilize two Exponential Moving Averages (EMAs) to filter signals, allowing only trades aligned with the main trend to be displayed on the chart.
Unified Dynamic Alerts: Set up a single alert that will notify you whether the signal is for a Buy or a Sell, compatible with TradingView's "Any alert() function call" option.
How to Use
Long Signal (Green Arrow ▲): Appears below a candle when one of the bullish patterns is identified in an oversold zone (as defined by the chosen oscillator).
Short Signal (Red Arrow ▼): Appears above a candle when one of the bearish patterns is identified in an overbought zone.
Trend Filter: For a higher win rate, enable the EMA filter. Look for long signals only when the price is above the moving averages (uptrend) and short signals only when it is below (downtrend).
Disclaimer: This indicator is a support tool and should be used in conjunction with your own technical analysis and risk management. Always perform backtests to adjust the parameters to your preferred asset and timeframe.
Pulse Lite [BreakoutOrFakeout]Pulse Lite - FREE
What It Does
A simplified momentum indicator that shows you the market's "pulse" through a smooth, easy-to-read line. Perfect for traders who want clean, reliable momentum signals without the complexity.
Key Features
💗 Smooth Pulse Line
Clean momentum reading from 0-100
Dynamic colors show market state instantly
No choppy signals or false noise
📊 3-Zone System
Above 70 = Overbought (red zone)
30-70 = Neutral (clear zone)
Below 30 = Oversold (green zone)
🎯 Simple Signals
Green dots when leaving oversold
Red dots when leaving overbought
Color changes show momentum shifts
📍 Current Reading
Live status: HIGH, NEUTRAL, or LOW
Exact value display
Color-coded label
How to Use
Basic Strategy
Oversold (below 30): Look for green dot, consider longs
Overbought (above 70): Look for red dot, consider shorts
Neutral (30-70): Follow the color for trend direction
Quick Rules
Green pulse = Bullish momentum
Red pulse = Bearish momentum
Blue pulse = Neutral/transitioning
Visual Guide
🔴 Red Zone (70-100) = Overbought, reversal risk
🟢 Green Zone (0-30) = Oversold, bounce likely
🔵 Blue Line (50) = Momentum midpoint
Why Start with Lite?
This free version gives you the core pulse reading system - clean, simple, and effective. Perfect for learning the concept or if you prefer minimalist indicators. No clutter, no complexity, just the essential momentum pulse.
Want More Power?
Upgrade to Pulse Meter PRO for:
5-zone power system for precision entries
Signal line with crossover alerts
Histogram strength visualization
Divergence detection
Multi-timeframe dashboard
Advanced filtering algorithms
Priority support
Best For
Beginners learning momentum trading
Traders who prefer simple, clean indicators
Quick momentum checks
Basic overbought/oversold signals
⚠️ DISCLAIMER: For educational purposes only. Trading involves substantial risk of loss. Past performance does not guarantee future results. Always use proper risk management.
Trend Flow [BreakoutOrFakeout]Trend Flow
What It Does
A professional trend visualization system that transforms market direction into a flowing, dynamic display. See trends develop, strengthen, and reverse with crystal clarity through intelligent visual layers that adapt to market conditions in real-time.
Why Traders Choose This
Visual Clarity: Multi-dimensional cloud system instantly reveals trend direction, strength, and momentum without cluttering your chart.
Smart Filtering: Built-in intelligence filters out market noise, showing only high-confidence signals worth your attention.
Adaptive Technology: Automatically adjusts to market volatility across all timeframes - from 1-minute scalping to daily swing trading.
Professional Design: Clean, modern aesthetics that make your charts look institutional-grade while remaining intuitive to read.
How to Apply It
Trend Direction: Cloud color shows the dominant trend at a glance - no guesswork required.
Entry Timing: Arrow signals appear only when momentum confirms the trend change, reducing false signals.
Strength Assessment: Visual intensity and special markers reveal when trends are accelerating or weakening.
Risk Management: Cloud width and color transitions help identify optimal stop-loss and take-profit zones.
Visual Language
Bright Colors = Strong, confident trends
Faded Colors = Weak or uncertain conditions
Special Markers = Trend acceleration points
Arrow Signals = High-probability entry opportunities
Best For
✓ Trend followers seeking clear directional bias
✓ Swing traders waiting for confirmed moves
✓ Day traders needing quick visual confirmation
✓ Position traders tracking longer-term flows
✓ Anyone wanting professional-grade chart aesthetics
Key Benefits
No repainting - all signals are final
Works on all markets and timeframes
Minimal settings - works great out of the box
Alert-ready for automated notifications
Combines multiple confirmation layers
The Bottom Line
Stop squinting at messy charts trying to identify trends. Trend Flow makes market direction obvious through elegant visual design that's both beautiful and functional. Your charts will never look the same.
⚠️ DISCLAIMER: For educational purposes only. Trading involves risk. Past performance does not guarantee future results. Always use proper risk management.
Volume Pulse [BreakoutOrFakeout]Volume Pulse
What It Is
A beautifully designed volume indicator that transforms standard volume bars into an intelligent, visually stunning analysis tool. It instantly highlights when "smart money" is moving and helps identify real breakouts from fakeouts.
What Makes It Special
Visual Intelligence: Uses gradient color technology that intensifies based on volume strength - weak volume appears transparent while strong volume pops with vibrant colors. You'll literally SEE the difference between retail and institutional activity.
Spike Detection: Automatically identifies and marks unusual volume surges with golden diamond markers - these often precede major price moves.
Dynamic Adaptation: The moving average line intelligently changes opacity based on current volume conditions, creating a living, breathing indicator that responds to market activity.
Real-Time Stats: Floating information panel shows current volume compared to average with percentage changes - no mental math required.
How to Use It
Color Intensity = Volume Strength
Faded bars = Weak volume (potential fakeout)
Solid bars = Strong volume (potential breakout)
Golden Diamonds = Pay Attention
Mark 2x average volume spikes
Often appear at reversal points or breakout confirmations
Blue Line Relationship
Volume above line = Increasing interest
Volume below line = Declining participation
Background Highlights
Subtle yellow glow on extreme volume days
Makes significant days impossible to miss
Perfect For
Confirming breakout validity
Spotting accumulation/distribution
Identifying climax tops/bottoms
Day trading volume patterns
Swing trading entry confirmation
Why Traders Love It
✓ Makes volume analysis actually enjoyable
✓ Clean design reduces chart clutter
✓ Works on all timeframes
✓ No complex settings to figure out
✓ Professional appearance impresses clients
The Bottom Line: It's "just" a volume indicator - but it makes every other volume indicator look outdated. The gradient effect alone will change how you view volume forever.
⚠️ For educational purposes only. Trading involves risk.
Signal Generator: HTF EMA Momentum + MACDSignal Generator: HTF EMA Momentum + MACD
What this script does
This indicator combines a higher-timeframe EMA trend filter with a MACD crossover on the chart’s timeframe. The goal is to make MACD signals more selective by checking whether they occur in the same direction as the broader trend.
How it works
- On the higher timeframe, two EMAs are calculated (short and long). Their difference is used as a simple momentum measure.
- On the chart timeframe, the MACD is calculated. Crossovers are then filtered with two conditions:
1.They must align with the higher-timeframe EMA trend.
2.They must occur beyond a small “zero band” threshold, with a minimum distance between MACD and signal lines.
- When both conditions are met, the script can plot BUY or SELL labels. ATR is used only to shift labels up or down for visibility.
Visuals and alerts
- Histogram bars show whether higher-timeframe EMA momentum is rising or falling.
- MACD main and signal lines are plotted with optional scaling.
- Dotted lines show the zero band region.
- Optional large BUY/SELL labels appear when conditions are confirmed on the previous bar.
- Alerts can be enabled for these signals; they trigger once per bar close.
Notes and limitations
- Higher-timeframe values are only confirmed once the higher-timeframe candle has closed.
- Scaling factors affect appearance only, not the logic.
- This is an open-source study intended as a learning and charting tool. It does not provide financial advice or guarantee performance.
Chimera [theUltimator5]In myth, the chimera is an “impossible” hybrid—lion, goat, and serpent fused into one—striking to look at and formidable in presence. The word has come to mean a beautiful, improbable union of parts that shouldn’t work together, yet do.
Chimera is a dual-mode market context tool that blends a multi-input oscillator with classic ADX/DI trend strength, plus optional multi-timeframe “gap-line” tracking. Use it to visualize regime (trend vs. range), momentum swings around an adaptive midline, and higher timeframe (HTF) reference levels that auto-terminate on touch/cross.
Modes
1) Oscillator view
A smoothed composite of five common inputs—RSI, MACD (oscillator), Bollinger position, Stochastic, and an ATR/DI-weighted bias. Each is normalized to a comparable 0–100 style scale, averaged, and plotted as a candle-style oscillator (short vs. long smoothing, wickless for clarity). A dynamic midline with standard-deviation bands frames neutral → bearish/bullish zones. Colors ramp from neutral to your chosen Oversold/Overbought endpoints; consolidation can override to white.
Here is a description of the (5) signals used to calculate the sentiment oscillator:
RSI (14): Measures recent momentum by comparing average gains vs. losses. High = strength after advances; low = weakness after declines. (Z-score normalized to 0–100.)
MACD oscillator (12/26/9): Uses the difference between MACD and its signal (histogram) to gauge momentum shifts. Positive = bullish tilt; negative = bearish. (Z-score normalized.)
Bollinger Bands position (20, 2): Locates price within the bands (0–100 from lower → upper). Near upper suggests strength/expansion; near lower suggests weakness/contraction. (Then normalized.)
Stochastic (14, 3, 3): Shows where the close sits within the recent high-low range, smoothed via %D. Higher values = closes near highs; lower = near lows. (Scaled 0–100.)
ATR/DI composite (14): Volatility-weighted directional bias: (+DI − −DI) amplified by ATR as a % of price and its relative average. Positive = bullish pressure with volatility; negative = bearish. (Rank/scale normalized.)
All five are normalized and averaged into one composite, then smoothed (short/long) and compared to an adaptive midline with bands.
2) ADX view
Shows ADX, +DI, –DI with user-defined High Threshold. Transparency and color shift with regime. When ADX is strong, a directional “fire/ice” gradient fills the area between ADX and the high threshold, biased toward the dominant DI; when ADX is weak, a soft white fade highlights low-trend conditions.
HTF gap-line tracking (optional; both modes)
Detects “gap-like” reference levels after weak-trend consolidation flips into a sudden DI jump.
Anchors a line at the event bar’s open and auto-terminates upon first touch/cross (tick-size tolerance).
Auto-selects up to three higher timeframes suited to your chart resolution and prints non-overlapping lines with labels like 1H / 4H / 1D. Lower-priority duplicates are suppressed to reduce clutter.
Confirmation / repaint notes
Signals and lines finalize on bar close of the relevant timeframe.
HTF elements update only on the HTF bar close. During a forming bar they may appear transiently.
Line removal finalizes after the bar that produced the touch/cross closes.
Visual cues & effects
Oscillator candles: Open/High = long smoothing; Low/Close = short smoothing (no wicks).
Adaptive bands: Midline ± StdDev Multiplier × stdev of the blended series.
Consolidation tint: Optional white backdrop/candles when the consolidation condition is true (balance + low ADX).
Breakout VFX (optional): With strong DI/ADX and Bollinger breaks, renders a subtle “fire” flare above upper-band thrusts or “ice” shelf below lower-band thrusts.
Inputs (high-level)
Visual Style: Oscillator or ADX.
General (Oscillator): Lookback Period, Short/Long Smoothing, Standard Deviation Multiplier.
Color (Oscillator): Oversold/Overbought colors for gradient endpoints.
Plot (Oscillator): Show Candles, Show Slow MA Line, Show Individual Component (RSI/MACD/BB/Stoch/ATR).
Table (Oscillator): Show Information Table & position (compact dashboard of component values + status).
ADX / Gaps / VFX (both modes): ADX High Threshold, Highlight Backgrounds, Show Gap Labels, Visual Overlay Effects, and color choices for current-TF & HTF lines.
HTF selection: Automatic ladder (3 tiers) based on your chart timeframe.
Alerts (built-in)
Buy Signal – Primary: Oscillator exits oversold.
Sell Signal – Primary: Oscillator exits overbought.
Gap Fill Line Created (Any TF)
Gap Fill Line Terminated (Any TF)
ADX Crossed ABOVE/BELOW Low Threshold
ADX Crossed ABOVE/BELOW High Threshold
Consolidation Started
Alerts evaluate on the close of the relevant timeframe.
How to read it (quick guide)
Pick your lens: Oscillator for blended momentum around an adaptive midline; ADX for trend strength and DI skew.
Watch extremes & mean re-entries (Oscillator): Approaches to the top/bottom band show persistent momentum; returns toward the midline show normalization.
Check regime (ADX): Below Low = low-trend; above High = strong trend, with “fire/ice” bias toward +DI/–DI.
Track gap lines: Fresh labels mark new reference levels; lines auto-remove on first interaction. HTF lines add context but finalize only on HTF close.
The uniqueness from this indicator comes from multiple areas:
1. A unique multi-timeframe algorithm detects gap fill zones and plots them on the chart.
2. Visual effects for both visual modes were hand crafted to provide a visually stunning and intuitive interface.
3. The algorithm to determine sentiment uses a unique blend of weight and sensitivity adjustment to create a plot with elastic upper and lower bounds based off historical volatility and price action.
[DEM] Multi-Symbol Relative Strength Index Multi-Symbol Relative Strength Index is a comparative analysis indicator that simultaneously displays RSI values for five different symbols (defaulting to major tech stocks NVDA, MSFT, AAPL, AMZN, and GOOG) on a single chart pane. The indicator plots each symbol's RSI as colored lines with standard overbought (70) and oversold (30) reference levels, allowing traders to quickly compare relative momentum across multiple assets. A key feature is the dynamic background coloring that highlights which symbol currently has the extreme RSI value (either highest or lowest, depending on user selection), making it easy to identify which stock is showing the most extreme momentum condition at any given time. The indicator includes a legend table displaying all tracked symbols with their corresponding colors, and the background fill between the 30-70 RSI levels provides clear visual reference for overbought and oversold zones across all symbols simultaneously.
[DEM] Momentum Bars Momentum Bars is designed to color price bars based on a combination of Aroon oscillator analysis and RSI momentum to identify periods of strong directional bias and filter out choppy or indecisive market conditions. The indicator calculates the Aroon Up and Aroon Down values over a configurable period (default 20) to determine which direction has more recent strength, then combines this with RSI analysis using the same period to confirm momentum alignment. Bars are colored green when Aroon Up exceeds Aroon Down (indicating recent highs dominate) and RSI is above 50 (confirming bullish momentum), red when Aroon Down exceeds Aroon Up (indicating recent lows dominate) and RSI is below 50 (confirming bearish momentum), and purple for all other conditions where the Aroon and RSI signals are conflicting or neutral, providing traders with immediate visual feedback about when price momentum and recent high/low activity are aligned versus when market conditions are mixed.
Information Flow Analysis[b🔄 Information Flow Analysis: Systematic Multi-Component Market Analysis Framework
SYSTEM OVERVIEW AND ANALYTICAL FOUNDATION
The Information Flow Kernel - Hybrid combines established technical analysis methods into a unified analytical framework. This indicator systematically processes three distinct data streams - directional price momentum, volume-weighted pressure dynamics, and intrabar development patterns - integrating them through weighted mathematical fusion to produce statistically normalized market flow measurements.
COMPREHENSIVE MATHEMATICAL FRAMEWORK
Component 1: Directional Flow Analysis
The directional component analyzes price momentum through three mathematical vectors:
Price Vector: p = C - O (intrabar directional bias)
Momentum Vector: m = C_t - C_{t-1} (bar-to-bar velocity)
Acceleration Vector: a = m_t - m_{t-1} (momentum rate of change)
Directional Signal Integration:
S_d = \text{sgn}(p) \cdot |p| + \text{sgn}(m) \cdot |m| \cdot 0.6 + \text{sgn}(a) \cdot |a| \cdot 0.3
The signum function preserves directional information while absolute values provide magnitude weighting. Coefficients create a hierarchy emphasizing intrabar movement (100%), momentum (60%), and acceleration (30%).
Final Directional Output: K_1 = S_d \cdot w_d where w_d is the directional weight parameter.
Component 2: Volume-Weighted Pressure Analysis
Volume Normalization: r_v = \frac{V_t}{\overline{V_n}} where \overline{V_n} represents the n-period simple moving average of volume.
Base Pressure Calculation: P_{base} = \Delta C \cdot r_v \cdot w_v where \Delta C = C_t - C_{t-1} and w_v is the velocity weighting factor.
Volume Confirmation Function:
f(r_v) = \begin{cases}
1.4 & \text{if } r_v > 1.2 \
0.7 & \text{if } r_v < 0.8 \
1.0 & \text{otherwise}
\end{cases}
Final Pressure Output: K_2 = P_{base} \cdot f(r_v)
Component 3: Intrabar Development Analysis
Bar Position Calculation: B = \frac{C - L}{H - L} when H - L > 0 , else B = 0.5
Development Signal Function:
S_{dev} = \begin{cases}
2(B - 0.5) & \text{if } B > 0.6 \text{ or } B < 0.4 \
0 & \text{if } 0.4 \leq B \leq 0.6
\end{cases}
Final Development Output: K_3 = S_{dev} \cdot 0.4
Master Integration and Statistical Normalization
Weighted Component Fusion: F_{raw} = 0.5K_1 + 0.35K_2 + 0.15K_3
Sensitivity Scaling: F_{master} = F_{raw} \cdot s where s is the sensitivity parameter.
Statistical Normalization Process:
Rolling Mean: \mu_F = \frac{1}{n}\sum_{i=0}^{n-1} F_{master,t-i}
Rolling Standard Deviation: \sigma_F = \sqrt{\frac{1}{n}\sum_{i=0}^{n-1} (F_{master,t-i} - \mu_F)^2}
Z-Score Computation: z = \frac{F_{master} - \mu_F}{\sigma_F}
Boundary Enforcement: z_{bounded} = \max(-3, \min(3, z))
Final Normalization: N = \frac{z_{bounded}}{3}
Flow Metrics Calculation:
Intensity: I = |z|
Strength Percentage: S = \min(100, I \times 33.33)
Extreme Detection: \text{Extreme} = I > 2.0
DETAILED INPUT PARAMETER SPECIFICATIONS
Sensitivity (0.1 - 3.0, Default: 1.0)
Global amplification multiplier applied to the master flow calculation. Functions as: F_{master} = F_{raw} \cdot s
Low Settings (0.1 - 0.5): Enhanced precision for subtle market movements. Optimal for low-volatility environments, scalping strategies, and early detection of minor directional shifts. Increases responsiveness but may amplify noise.
Moderate Settings (0.6 - 1.2): Balanced sensitivity for standard market conditions across multiple timeframes.
High Settings (1.3 - 3.0): Reduced sensitivity to minor fluctuations while emphasizing significant flow changes. Ideal for high-volatility assets, trending markets, and longer timeframes.
Directional Weighting (0.1 - 1.0, Default: 0.7)
Controls emphasis on price direction versus volume and positioning factors. Applied as: K_{1,weighted} = K_1 \times w_d
Lower Values (0.1 - 0.4): Reduces directional bias, favoring volume-confirmed moves. Optimal for ranging markets where momentum may generate false signals.
Higher Values (0.7 - 1.0): Amplifies directional signals from price vectors and acceleration. Ideal for trending conditions where directional momentum drives price action.
Velocity Weighting (0.1 - 1.0, Default: 0.6)
Scales volume-confirmed price change impact. Applied in: P_{base} = \Delta C \times r_v \times w_v
Lower Values (0.1 - 0.4): Dampens volume spike influence, focusing on sustained pressure patterns. Suitable for illiquid assets or news-sensitive markets.
Higher Values (0.8 - 1.0): Amplifies high-volume directional moves. Optimal for liquid markets where volume provides reliable confirmation.
Volume Length (3 - 20, Default: 5)
Defines lookback period for volume averaging: \overline{V_n} = \frac{1}{n}\sum_{i=0}^{n-1} V_{t-i}
Short Periods (3 - 7): Responsive to recent volume shifts, excellent for intraday analysis.
Long Periods (13 - 20): Smoother averaging, better for swing trading and higher timeframes.
DASHBOARD SYSTEM
Primary Flow Gauge
Bilaterally symmetric visualization displaying normalized flow direction and intensity:
Segment Calculation: n_{active} = \lfloor |N| \times 15 \rfloor
Left Fill: Bearish flow when N < -0.01
Right Fill: Bullish flow when N > 0.01
Neutral Display: Empty segments when |N| \leq 0.01
Visual Style Options:
Matrix: Digital blocks (▰/▱) for quantitative precision
Wave: Progressive patterns (▁▂▃▄▅▆▇█) showing flow buildup
Dots: LED-style indicators (●/○) with intensity scaling
Blocks: Modern squares (■/□) for professional appearance
Pulse: Progressive markers (⎯ to █) emphasizing intensity buildup
Flow Intensity Visualization
30-segment horizontal bar graph with mathematical fill logic:
Segment Fill: For i \in : filled if \frac{i}{29} \leq \frac{S}{100}
Color Coding System:
Orange (S > 66%): High intensity, strong directional conviction
Cyan (33% ≤ S ≤ 66%): Moderate intensity, developing bias
White (S < 33%): Low intensity, neutral conditions
Extreme Detection Indicators
Circular markers flanking the gauge with state-dependent illumination:
Activation: I > 2.0 \land |N| > 0.3
Bright Yellow: Active extreme conditions
Dim Yellow: Normal conditions
Metrics Display
Balance Value: Raw master flow output ( F_{master} ) showing absolute directional pressure
Z-Score Value: Statistical deviation ( z_{bounded} ) indicating historical context
Dynamic Narrative System
Context-sensitive interpretation based on mathematical thresholds:
Extreme Flow: I > 2.0 \land |N| > 0.6
Moderate Flow: 0.3 < |N| \leq 0.6
High Volatility: S > 50 \land |N| \leq 0.3
Neutral State: S \leq 50 \land |N| \leq 0.3
ALERT SYSTEM SPECIFICATIONS
Mathematical Trigger Conditions:
Extreme Bullish: I > 2.0 \land N > 0.6
Extreme Bearish: I > 2.0 \land N < -0.6
High Intensity: S > 80
Bullish Shift: N_t > 0.3 \land N_{t-1} \leq 0.3
Bearish Shift: N_t < -0.3 \land N_{t-1} \geq -0.3
TECHNICAL IMPLEMENTATION AND PERFORMANCE
Computational Architecture
The system employs efficient calculation methods minimizing processing overhead:
Single-pass mathematical operations for all components
Conditional visual rendering (executed only on final bar)
Optimized array operations using direct calculations
Real-Time Processing
The indicator updates continuously during bar formation, providing immediate feedback on changing market conditions. Statistical normalization ensures consistent interpretation across varying market regimes.
Market Applicability
Optimal performance in liquid markets with consistent volume patterns. May require parameter adjustment for:
Low-volume or after-hours sessions
News-driven market conditions
Highly volatile cryptocurrency markets
Ranging versus trending market environments
PRACTICAL APPLICATION FRAMEWORK
Market State Classification
This indicator functions as a comprehensive market condition assessment tool providing:
Trend Analysis: High intensity readings ( S > 66% ) with sustained directional bias indicate strong trending conditions suitable for momentum strategies.
Reversal Detection: Extreme readings ( I > 2.0 ) at key technical levels may signal potential trend exhaustion or reversal points.
Range Identification: Low intensity with neutral flow ( S < 33%, |N| < 0.3 ) suggests ranging market conditions suitable for mean reversion strategies.
Volatility Assessment: High intensity without clear directional bias indicates elevated volatility with conflicting pressures.
Integration with Trading Systems
The normalized output range facilitates integration with automated trading systems and position sizing algorithms. The statistical basis provides consistent interpretation across different market conditions and asset classes.
LIMITATIONS AND CONSIDERATIONS
This indicator combines established technical analysis methods and processes historical data without predicting future price movements. The system performs optimally in liquid markets with consistent volume patterns and may produce false signals in thin trading conditions or during news-driven market events. This indicator is provided for educational and analytical purposes only and does not constitute financial advice. Users should combine this analysis with proper risk management, position sizing, and additional confirmation methods before making any trading decisions. Past performance does not guarantee future results.
Note: The term "kernel" in this context refers to modular calculation components rather than mathematical kernel functions in the formal computational sense.
As quantitative analyst Ralph Vince noted: "The essence of successful trading lies not in predicting market direction, but in the systematic processing of market information and the disciplined management of probability distributions."
— Dskyz, Trade with insight. Trade with anticipation.
[Futures OI vs Price Change] (% Change)╔═══════════════════ RUBIXCUBE ══════════════════════╗
This indicator analyses the relationship between Open Interest percentage changes and price percentage changes in futures markets. Inspired by Checkonchain's market structure analysis, it displays this data as coloured column bars to identify different market conditions.
What This Indicator Shows
The indicator plots Open Interest percentage change as column bars, with colours representing four market regimes:
- Blue (Leveraged Rally): OI increases + Price increases (New leveraged long positions)
- Green (Spot Rally): OI decreases + Price increases (Organic buying or short covering)
- Orange (Leveraged Sell-Off): OI increases + Price decreases (New short positions or long liquidations)
- Red (Deleveraging Sell-Off): OI decreases + Price decreases (Position unwinding)
Bar transparency changes based on price movement magnitude. Larger price changes result in more solid bars, while smaller moves appear more transparent.
Data Sources
Aggregated Open Interest data from multiple exchanges:
- Binance USDT, USD & BUSD Perpetuals
- BitMEX USD & USDT Perpetuals
- Kraken USD Perpetuals
Settings
- OI % Change SMA: Smoothing period for Open Interest changes (Default: 7)
- Price % Change SMA: Smoothing period for price changes (Default: 7)
- Base Transparency: Baseline transparency level (0-100)
- Transparency Sensitivity: How much price change affects bar transparency
- Exchange Toggles: Enable/disable individual exchange data
Usage
This indicator helps identify market structure by showing whether price moves are accompanied by increasing or decreasing leveraged positions. Blue and orange bars indicate new leverage entering the market, while green and red bars suggest position reduction or organic spot activity.
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ma btc Multiple MA Convergence Alertbtc and eth ma15 20 50 200if converge
alert("EMA15, MA20, MA50, MA200 are converging/overlap crossing!", alert.freq_once_per_bar_close)
WaveTrend OscillatorWave trend Oscillator, similar to the other Cypher Oscillators, just that this oscillator is a little bit more refined less noise and a few better options for the money flow, but keeping the basic Structures and features. The only feature this does not have is the divergences
NK-Macd + Rsi3Here in one table you can see the MACD of the different time frame that what is the status of the MACD, is it above zero line or below zero line.
Second you will see in table that RSI number of all time frame, so here we dont need to go and check RSI by switching the chart and time frame.
at one place you will see both RSI and MACD, and by seeing the number you can check when the price in oversold zone and when it will in overbought also you can see the when the price in momentum and when not.
Example :- let assume RSI table showing above 40 in 1 hr and 67 in daily that means RSI is in swing momentum in hrly but momentum in daily.
LCS DynamicUses adaptive calculations to generate signals each signal has different rules to trade which will be updated shortly
Williams %R smoothed🌍 English Description
Williams %R Smoothed – by Ján Salma
This is the first smoothed version of the Williams %R indicator published on TradingView.
The traditional Williams %R is a momentum oscillator that can be very choppy and noisy. Many traders find it hard to use because of the constant whipsaws.
This indicator solves that problem by applying an EMA smoothing on top of the raw Williams %R values.
Why is this special?
[* ]📉 Reduces noise → much cleaner signal, fewer false spikes.
🔍 Highlights real momentum shifts → easier to spot when the market truly changes direction.
🎯 Customizable smoothing → you decide how sensitive or smooth the curve should be.
⚡ Unique → currently, there is no other smoothed Williams %R available on TradingView.
Settings
Length → default 14 (standard Williams %R period).
Smoothing → default 3 EMA (smooths out the raw values).
Levels: -20 (overbought), -80 (oversold), -50 (mid-level).
This indicator is great for scalpers and swing traders who love Williams %R but hate the noise.
Now you can finally use %R with more confidence and clarity.
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Slovenský popis
Williams %R Smoothed – od Jána Salmu
Toto je prvá vyhladená verzia Williams %R indikátora publikovaná na TradingView.
Klasický Williams %R je oscilátor hybnosti, ktorý je často veľmi „roztrasený“ a plný šumu. Mnoho traderov s ním preto pracuje ťažko, pretože dáva veľa falošných signálov.
Tento indikátor to rieši tak, že na pôvodné hodnoty Williams %R aplikuje EMA vyhladenie .
Čo robí tento indikátor výnimočným?
📉 Redukuje šum → výsledná krivka je čistejšia, s menej falošnými výkyvmi.
🔍 Zvýrazňuje skutočné zmeny hybnosti → jasnejšie vidíš, kedy sa trh naozaj otáča.
🎯 Nastaviteľné vyhladenie → citlivosť indikátora si prispôsobíš podľa seba.
⚡ Unikát → na TradingView zatiaľ neexistuje žiadny iný vyhladený Williams %R.
Nastavenia
Dĺžka → predvolená hodnota 14 (štandardný Williams %R).
Smoothing (EMA) → predvolená hodnota 3 (vyhladenie krivky).
Úrovne: -20 (prekúpený trh), -80 (prepredaný trh), -50 (stredová hodnota).
Tento indikátor je skvelý pre scalperov aj swing traderov, ktorí majú radi Williams %R, ale chcú ho používať s väčšou presnosťou a prehľadnosťou.
LRSlope - Linear Regression SlopeThis indicator attempts to predict the direction of the trend using least squares moving averages (LSMA).
The indicator's core purpose is to determine whether the price trajectory has a positive or negative slope and calculate directional changes. It also measures the strength of price momentum by calculating how strongly the slope.
The indicator calculates the slope of the curve for each bar and the EMA of these slopes for the specified period (Curve Length). It is consists of a histogram and two lines named "Average Slope"(white line) and "Simple" (green line).
The "Average Slope" is the simple moving average of the calculated EMA values.
" Simple " is SMA of calculated slopes.
The color of the histogram changes depending on the relative position of these two lines and zero line.
Simply put, the green bars of the histogram indicate an uptrend, blue bars indicate a horizontal or reverse movement, and red bars indicate a downtrend.
It is possible to see the strength of the momentum by the amount of change in the " Simple" (green line).
PowerDelta Oscillator [FxScripts]PowerDelta Oscillator
The PowerDelta Oscillator measures real-time buying and selling pressure using the proprietary PowerDelta Algorithm. By quantifying order flow, it identifies whether the market conditions favor bullish or bearish activity, helping traders determine directional bias for both trend and countertrend setups.
Calculation Methodology
The PowerDelta computes the delta (difference) between buying and selling pressure by integrating both price movement and volume behavior rather than relying solely on volume or price-based approximations like other oscillators.
The PowerDelta Algorithm evaluates six core price-volume conditions:
Price advancing with increasing volume
Price advancing with decreasing volume
Price consolidating with increasing volume
Price consolidating with decreasing volume
Price declining with increasing volume
Price declining with decreasing volume
From these conditions, the algorithm derives:
Accumulation vs Distribution phases
Buyer/Seller exhaustion points
Effort vs No Result scenarios (volume pressure failing to move price)
Operational Use
The PowerDelta Oscillator has three operational modes:
Trend
Countertrend
Blended (Trend/Countertrend hybrid)
Trend Mode
In Trend Mode, the indicator plots an oscillator that fluctuates between positive and negative values:
Positive readings indicate dominant buying pressure
Negative readings indicate dominant selling pressure
The magnitude of the reading reflects the intensity of the pressure
Crossovers at the zero line provide directional shifts:
Negative → Positive: bullish transition
Positive → Negative: bearish transition
Additionally:
Sustained positive values indicate control by buyers, long bias is favoured
Sustained negative values indicate control by sellers, short bias is favoured
The magnitude of displacement from zero provides additional confirmation of market strength or weakness
Countertrend Mode
In Countertrend Mode, the primary use of the PowerDelta Oscillator is to locate divergences between price and the oscillator (as visualised on the chart above) which helps traders pinpoint potential reversals
The oscillator is much more sensitive in this mode, making highs, lows and hence divergences, easier to spot
Like Trend Mode, the magnitude of displacement from zero provides additional confirmation of market strength or weakness
The various Analytical Scenarios detailed below provide detailed use cases for both Trend and Countertrend Mode
Blended Mode
To provide maximum flexibility, there’s also a third Blended Mode
This mode combines elements of the two primary modes and can be used as part of a hybrid approach making it easier to spot both trends and reversals
Alternative Source
The PowerDelta algorithm utilises volume data therefore it’s best to use the most reliable source of volume data for the instrument being traded
For instance, whilst XAUUSD provides excellent results with most forex brokers, slightly better results may be achieved using GC futures data which comes direct from the exchange (data package required)
To use a third-party source, select 'Alternative' and input the relevant source
This can also be used as a way to monitor correlated pairs by adding two instances of the PowerDelta to the same chart, selecting pair 1 e.g. EURUSD as the first instance and the correlated pair e.g. USDCHF as the second instance
Thorough backtesting advised
Analytical Scenarios
Accumulation: High positive oscillator readings combined with upward price movement suggest active accumulation.
Optimal strategy: Monitor pullbacks for potential long entries or wait for a divergence with price and potential reversal.
Distribution: High negative oscillator readings with downward price movement indicate distribution.
Optimal strategy: Monitor pullbacks for potential short entries or wait for a divergence with price and potential reversal.
Buyer Exhaustion: Price forms higher highs while oscillator value declines. Indicates weakening buying strength and potential bearish reversal.
Seller Exhaustion: Price forms lower lows while oscillator value contracts. Indicates weakening selling strength and potential bullish reversal.
Effort / No Result (Buyers): Positive oscillator expansion without higher highs indicates aggressive buying without price confirmation, suggesting overbought conditions and a potential bearish reversal.
Effort / No Result (Sellers): Negative oscillator expansion without lower lows indicates aggressive selling without price confirmation, suggesting oversold conditions and a potential bullish reversal.
Alerts
To trigger alerts when market bias transitions across the zero line:
Right-click on chart → Add Alert on PowerDelta
Condition: PowerDelta → Select Mode
Type: Crossing
Value: 0
Execution: Once Per Bar Close
Adjust additional parameters as required
Performance and Optimization
Backtesting Results: The PowerDelta Oscillator has undergone extensive backtesting across various instruments, timeframes and market conditions, demonstrating strong performance in identifying strong trends and reversals. User backtesting is strongly encouraged as it allows traders to optimize settings for their preferred instruments and timeframes.
Optimization for Diverse Markets: The PowerDelta Oscillator can be used on crypto, forex, indices, commodities and stocks. The PowerDelta Oscillator's algorithmic foundation ensures consistent performance across a variety of instruments. The Trend, Countertrend and Blended Modes make it easy for the trader to set up based on their individual trading style.
Educational Resources and Support
Users of the PowerDelta Oscillator benefit from comprehensive educational resources and full access to FxScripts Support. This ensures traders can maximize the potential of the PowerDelta Oscillator and other tools in the Sigma Indicator Suite by learning best practices and gaining insights from an experienced team of traders.
Supertrend Channel Histogram OscillatorThis histogram is based on the script "Supertrend Channels "
The idea of the indicator is to visually represent the interaction of price with several different supertrend channels of various lengths in an oscillator in order to make it much more clear to the trader how the longer trends are interacting with shorter trends of the price movement of an asset. I got this idea from the "Kurutoga Cloud" and "Kurutoga Histogram" by D7R which is based on the centerlines of 3 Donchian Channels, however after I started using the Supertrend Channel by LuxAlgo I found that it was a more reliable price range channel than a standard Donchian Channel and I made this indicator to accompany it.
This indicator plots a positive value above 0 when the price is above the centerline of the supertrend channel and a negative value below 0 when the price is below the centerline.
The first supertrend's length and multiple can be adjusted in the settings.
The given supertrend input is then doubled and quadrupled in both length and multiplication so that a supertrend histogram with the values of 3, 3 will be accompanied by 2 additional supertrend histograms with the values of 6, 6 and 12, 12.
The larger price trend histograms are clearly visible behind the short term supertrend channel's histogram, giving traders a balanced view of short and long term trends interacting. The less visible columns of the larger trend remain above or below the 0 line behind the more visible short term channel trend, helping to spot pullbacks within a larger trend.
Additionally, when the 3 separate histograms are all positive or all negative but the histogram columns are separating from each other this can indicate a potential trend exhaustion leading to reversal or pullback about to happen.
The overbought and oversold lines at 50 and -50 are representative primarily of the short term trend with above 50 or below -50 indicating that the price is pushing the boundary and potentially beginning a new short term supertrend in the opposite direction. If values do not noticably exceed these levels, then the current short term trend movement can be viewed as a pullback within a larger trend, with continuation potentially to follow.
I have had troubles converting the original code to v6 so this will be published here in v5 of pinescript to be used in conjunction with the original. I was intending to create a companion indicator for this oscillator that represents 3 supertrends with corresponding 2x and 4x calculations based on LuxAlgo's script, but I can't seem to get it to work correctly in v5.
For best visualization of the trends 3 LuxAlgo Supertrend channels with 2x and 4x values should be used in conjunction with each other to fully visualize the histogram.
Used in conjunction with other indicators this can be a very effective strategy to capture larger trend moves and pullbacks within trends, as well as warn of potential price trend exhaustion.
Volatility Cone Forecaster Lite [PhenLabs]📊 Volatility Cone Forecaster
Version: PineScript™v6
📌Description
The Volatility Cone Forecaster (VCF) is an advanced indicator designed to provide traders with a forward-looking perspective on market volatility. Instead of merely measuring past price fluctuations, the VCF analyzes historical volatility data to project a statistical “cone” that outlines a probable range for future price movements. Its core purpose is to contextualize the current market environment, helping traders to anticipate potential shifts from low to high volatility periods (and vice versa). By identifying whether volatility is expanding or contracting relative to historical norms, it solves the critical problem of preparing for significant market moves before they happen, offering a clear statistical edge in strategy development.
This indicator moves beyond lagging measures by employing percentile analysis to rank the current volatility state. This allows traders to understand not just what volatility is, but how significant it is compared to the recent past. The VCF is built for discretionary traders, system developers, and options strategists who need a sophisticated understanding of market dynamics to manage risk and identify high-probability opportunities.
🚀Points of Innovation
Forward-Looking Volatility Projection: Unlike standard indicators that only show historical data, the VCF projects a statistical cone of future volatility.
Percentile-Based Regime Analysis: Ranks current volatility against historical data (e.g., 90th, 75th percentiles) to provide objective context.
Automated Regime Detection: Automatically identifies and labels the market as being in a ‘High’, ‘Low’, or ‘Normal’ volatility regime.
Expansion & Contraction Signals: Clearly indicates whether volatility is currently increasing or decreasing, signaling shifts in market energy.
Integrated ATR Comparison: Plots an ATR-equivalent volatility measure to offer a familiar point of reference against the statistical model.
Dynamic Visual Modeling: The cone visualization directly on the price chart provides an intuitive guide for future expected price ranges.
🔧Core Components
Realized Volatility Engine: Calculates historical volatility using log returns over multiple user-defined lookback periods (short, medium, long) for a comprehensive view.
Percentile Analysis Module: A custom function calculates the 10th, 25th, 50th, 75th, and 90th percentiles of volatility over a long-term lookback (e.g., 252 days).
Forward Projection Calculator: Uses the calculated volatility percentiles to mathematically derive and draw the upper and lower bounds of the future volatility cone.
Volatility Regime Classifier: A logic-based system that compares current volatility to the historical percentile bands to classify the market state.
🔥Key Features
Customizable Lookback Periods: Adjust short, medium, and long-term lookbacks to fine-tune the indicator’s sensitivity to different market cycles.
Configurable Forward Projection: Set the number of days for the forward cone projection to align with your specific trading horizon.
Interactive Display Options: Toggle visibility for percentile labels, ATR levels, and regime coloring to customize the chart display.
Data-Rich Information Table: A clean, on-screen table displays all key metrics, including current volatility, percentile rank, regime, and trend.
Built-in Alert Conditions: Set alerts for critical events like volatility crossing the 90th percentile, dropping below the 10th, or switching between expansion and contraction.
🎨Visualization
Volatility Cone: Shaded bands projected onto the future price axis, representing the probable price range at different statistical confidence levels (e.g., 75th-90th percentile).
Color-Coded Volatility Line: The primary volatility plot dynamically changes color (e.g., red for high, green for low) to reflect the current volatility regime, providing instant context.
Historical Percentile Bands: Horizontal lines plotted across the indicator pane mark the key percentile levels, showing how current volatility compares to the past.
On-Chart Labels: Clear labels automatically display the current volatility reading, its percentile rank, the detected regime, and trend (Expanding/Contracting).
📖Usage Guidelines
Setting Categories
Short-term Lookback: Default: 10, Range: 5-50. Controls the most sensitive volatility calculation.
Medium-term Lookback: Default: 21, Range: 10-100. The primary input for the current volatility reading.
Long-term Lookback: Default: 63, Range: 30-252. Provides a baseline for long-term market character.
Percentile Lookback Period: Default: 252, Range: 100-1000. Defines the period for historical ranking; 252 represents one trading year.
Forward Projection Days: Default: 21, Range: 5-63. Determines how many bars into the future the cone is projected.
✅Best Use Cases
Breakout Trading: Identify periods of deep consolidation when volatility falls to low percentile ranks (e.g., below 25th) and begins to expand, signaling a potential breakout.
Mean Reversion Strategies: Target trades when volatility reaches extreme high percentile ranks (e.g., above 90th), as these periods are often unsustainable and lead to contraction.
Options Strategy: Use the cone’s projected upper and lower bounds to help select strike prices for strategies like iron condors or straddles.
Risk Management: Widen stop-losses and reduce position sizes when the indicator signals a transition into a ‘High’ volatility regime.
⚠️Limitations
Probabilistic, Not Predictive: The cone represents a statistical probability, not a guarantee of future price action. Extreme, unpredictable news events can drive prices outside the cone.
Lagging by Nature: All calculations are based on historical price data, meaning the indicator will always react to, not pre-empt, market changes.
Non-Directional: The indicator forecasts the *magnitude* of future moves, not the *direction*. It should be paired with a directional analysis tool.
💡What Makes This Unique
Forward Projection: Its primary distinction is projecting a data-driven, statistical forecast of future volatility, which standard oscillators do not do.
Contextual Analysis: It doesn’t just provide a number; it tells you what that number means through percentile ranking and automated regime classification.
🔬How It Works
1. Data Calculation:
The indicator first calculates the logarithmic returns of the asset’s price. It then computes the annualized standard deviation of these returns over short, medium, and long-term lookback periods to generate realized volatility readings.
2. Percentile Ranking:
Using a 252-day lookback, it analyzes the history of the medium-term volatility and determines the values that correspond to the 10th, 25th, 50th, 75th, and 90th percentiles. This builds a statistical map of the asset’s volatility behavior.
3. Cone Projection:
Finally, it takes these historical percentile values and projects them forward in time, calculating the potential upper and lower price bounds based on what would happen if volatility were to run at those levels over the next 21 days.
💡Note:
The Volatility Cone Forecaster is most effective on daily and weekly charts where statistical volatility models are more reliable. For lower timeframes, consider shortening the lookback periods. Always use this indicator as part of a comprehensive trading plan that includes other forms of analysis.
