Intraday Uncertainty [PhenLabs]📊 Intraday Uncertainty
Version: PineScript™ v6
📌 Description
The Intraday Uncertainty indicator offers traders a visual representation of market certainty/uncertainty during trading sessions. By comparing each price bar’s range to the Average True Range (ATR), it provides an intuitive way to gauge market conviction through a color gradient system.
This tool helps traders identify periods of high certainty (potentially trending markets) versus high uncertainty (potentially choppy or volatile markets) without complex calculations or multiple indicators. The color-coded bars create an immediate visual cue to support decision-making in varying market conditions.
🚀 Points of Innovation
Automated range-to-ATR ratio calculation that adapts to changing market volatility
Dynamic color gradient system that visually distinguishes between certain and uncertain price action
Customizable gradient clamping to fine-tune sensitivity to market conditions
Integrated dashboard that provides clear interpretation guidance
Position-flexible legend that accommodates different chart layouts
Highly optimized for performance with minimal calculation overhead
🔧 Core Components
ATR Calculation: Measures market volatility using a configurable lookback period
Range-to-ATR Ratio: Compares current bar’s high-low range against average volatility
Gradient Mapping System: Converts numerical uncertainty values into an intuitive color scale
Dashboard Legend: Provides clear interpretation guidance with customizable positioning
🔥 Key Features
Bar Coloring: Instantly identifies market certainty levels through intuitive color gradients
Customizable ATR Period: Adjust sensitivity to historical volatility based on trading style
Gradient Clamping: Fine-tune the color sensitivity using the Range/ATR multiplier
Color Customization: Personalize the color scheme to match your chart aesthetics
Informative Dashboard: Quickly interpret color meanings with the optional on-chart legend
Flexible Display Options: Customize dashboard position and text size for your chart layout
🎨 Visualization
Color Gradient: Bars colored on a spectrum from green (high certainty) to red (high uncertainty)
Dashboard Legend: Optional on-chart guide explaining the color interpretation
Color Intensity: Stronger colors indicate more extreme certainty/uncertainty levels
At-a-glance Interpretation: Quickly identify market conviction without analyzing numbers
📖 Usage Guidelines
Calculation Settings
ATR Period
Default: 14
Range: 1+
Description: Controls the lookback period for ATR calculation. Lower values increase sensitivity to recent volatility, while higher values provide more stability.
Gradient Clamp (Range/ATR Multiplier)
Default: 2.0
Range: 0.1+
Description: Sets the maximum Range/ATR ratio for gradient scaling. Ranges above this value display the end color (high uncertainty).
Color Settings
Gradient Start Color (High Certainty)
Default: Green
Description: Color representing high market certainty (low Range/ATR ratio)
Gradient End Color (Low Certainty)
Default: Red
Description: Color representing low market certainty (high Range/ATR ratio)
Dashboard Settings
Show Dashboard Legend
Default: True
Description: Toggles the visibility of the on-chart interpretation guide
Dashboard Position
Options: top_right, top_left, bottom_right, bottom_left, middle_right, middle_left
Default: bottom_right
Description: Controls the placement of the dashboard on your chart
Dashboard Text Size
Options: tiny, small, normal, large, huge
Default: normal
Description: Adjusts the text size of the dashboard for readability
✅ Best Use Cases
Identifying potential trend shifts when certainty levels change dramatically
Confirming trend strength through consistent certainty levels
Detecting choppy/sideways markets with persistent high uncertainty
Filtering trading signals from other indicators based on certainty levels
Gauging market conviction behind price breakouts or pullbacks
Optimizing entry/exit timing based on certainty/uncertainty transitions
⚠️ Limitations
Does not predict future price direction, only measures current bar certainty
May provide false signals during news events or unexpected volatility spikes
Requires context within the broader market environment for optimal interpretation
Color interpretation is relative rather than absolute across different securities
ATR-based calculation means sensitivity varies across different timeframes
💡 What Makes This Unique
Simplicity: Single visual indicator that doesn’t require multiple technical tools
Adaptability: Automatically adjusts to changing market volatility conditions
Contextual Analysis: Provides market conviction context beyond just price movement
Intuitive Design: Color-based system that requires minimal learning curve
Efficiency: Lightweight calculation that doesn’t impact chart performance
🔬 How It Works
1. ATR Calculation:
Calculates the Average True Range using the specified period
Establishes a baseline for normal market volatility
2. Range Analysis:
Measures each bar’s high-low range
Compares this range to the current ATR value to create a ratio
3. Gradient Mapping:
Converts the Range/ATR ratio to a normalized value between 0 and 1
Maps this value onto a color gradient between the start and end colors
Applies the resulting color to the price bar
4. Dashboard Creation:
Constructs an information panel on the last visible bar
Populates it with color samples and interpretation guidance
💡 Note:
This indicator works best when used in conjunction with other technical analysis tools rather than in isolation. The certainty/uncertainty measure provides context for your trading decisions but should not be the sole basis for entries and exits. Consider using higher certainty periods for trend-following strategies and exercise caution during periods of high uncertainty.
Uncertainty
Heisenberg's Uncertainty BandsHeisenberg's Uncertainty Bands:
This is a volatility indicator to determine and visualize the uncertainty in a securities' price.
In quantum mechanics, the uncertainty principle (also known as Heisenberg's uncertainty principle) is any of a variety of mathematical inequalities asserting a fundamental limit to the accuracy with which the values for certain pairs of physical quantities of a particle, such as position, x, and momentum, p, can be predicted from initial conditions.
It plots a Kalman filter average of the bars inside a higher timeframe bar, to attempt to find the most frequent price in that bar's timespan. To plot what is effectively a MA using POC (IvanLabrie's code, credits to the author).
It derives momentum from relative momentum, yielding results more sensitive to changes.
Then it uses Heisenberg's uncertainty principle to find an uncertainty range, and uses it as the channel distance from the POC MA, meaning price is likely to fluctuate within that range.
Since uncertainty must be greater than h/2, adding fib levels will make it a useful indicator. Essentially they are pseudo-Fibonacci Bollinger Bands, which uses a different calculation.
Benefits:
Prices fluctuate, and it can be helpful to visualize price as a range, rather than a single point or line. This visualization can help in managing risk, determining entries and exits, and prevent losing one's position due to price fluctuations during a trend.
If we use a particle model, the uncertainty principle dictates that it is impossible to predict the price within a range. This is a good model for risk management!
Usage:
There are 5 Fibonacci ratio outer bands that can be turned on or off according to user's preference.
Recommended that the length inputs should be increased in higher timeframes, to visualize trends, shorter timeframes should have lower lengths.
GLHF
- DPT
