H/V/Q Volatility Index v2.0This is a standalone version of the volatility calculation used in QuantRsi. It is a relatively complex volatility-specific filtering calculation designed to give deeper insight into volatility trends for any asset class.
Use with Log scaling on the indicator's value scalar.
This tool offers an alternative model for volatility calculation. Experience using this tool proves that it extends the efficacy of volatility prediction techniques, and allows deeper technical analysis within volatility moves.
Use alongside conventional volatility indices to find opportunities within option chains to long or short volatility when HVQ provides evidence for volatility reversal that other options value models have not priced in.
Use as part of a predictive based risk management strategy.
Use alongside QuantRsi and HeffaeClouds as a complete trading suite, sans volume analysis, and gain insight not offered by any other indicator set.
SETTINGS:
TimeFrame settings:
Chart/Custom timeframe inputs are carried over from HeffaeClouds and QuantRsi indicators. Allows you to assign any non-chart timeframe to the indicator:
"ChartTF" follows your chart's selected resolution / TimeFrame
"Non-Chart TimeFrame" is an integer for your custom TimeFrame, the setting below:
"Non-Chart TimeFrame" selects "Minutes, Hours, Days" that corresponds to the above setting for a custom TimeFrame.
More Settings:
"Invert Output switch" will invert the volatility chart scale. Useful for visualizing some trends on assets that regularly correlate large volatility spikes with disorderly selloffs.
"Show High/Low Volt range" switch (experimental) shows the high/low extremes of alternate volatility window calculations. There is insight to be gained from large differences v.s. all ranges trending near the same values.
"Relative value switch" (experimental) divides the HVQ values by the hl2 candle price, per candle. This is a unique way to filter the output, visualize the volatility value per asset value.
"Range Multiplier" adjusts the average window length HVQ uses for calculations. This has been finely tuned so that the value of "10" corresponds to the best average fitting of all assets and timeframes. In most situations TimeFrame should be used to alter the real window periods and this should be left at default. Instead you can change this to find better fitting if you'd like.
If there is a feature you would like, question answered, or a bug to report, visit the TradingView SNOW_CITY public chat-room; link in my signature
Use the pastebin link below for indicator access information and pricing
Volatilityindicator
Volatility (Body and Weighted Shadow)- Volatility Indicator
- Replacement for ATR
- As each pair holds a different level of volatility, a stop loss can be set using this indicator rather than via a ratio 2:1, etc. e.g. 2 X Volatility Value = S/L...
- This indicator averages the bodies of candlesticks over a default length of 14 periods. It also considers the length of shadows via a weighted average. This is done as it is assumed that financial institutions tend to move price to levels that do not hold (shadows). Therefore, wick lengths are less significant than the candlestick bodies, so they are weighted to hold less value.
Volatility Index (Expo)Volatility Index (Expo)
DESCRIPTION
Volatility can be referred to many things, but a commonly accepted definition of volatility is that it’s a measure of the risk or uncertainty in the market. Higher volatility is equal to more risk in the market. A simple way of describing it is that when volatility is high, the value of the market can be spread out over a larger range of values. This means that the price of the market can change dramatically over a short time period in either direction. A lower volatility means that a market's value does not fluctuate dramatically, and tends to be steadier. However, how to calculate and to apply volatility has been widely debated and many different calculations have been used. Volatility Index is a must for a professional trader in today's volatile markets.
This Volatility Index is derived from research within Volatility.
HOW TO USE
1. Use the indicator to detect low- respectively high volatility.
2. Enter the market when the volatility is low, and exit the market when the volatility is high.
3. Use the indicator to identify when the volatility peaks. Can indicate that the market will shift or can be good areas to take profits.
Trend
When the market is in a positive trend, the volatility is low and stable. The opposite happens when the market is in a negative trend, the volatility is high and price moves boldly.
As a rule ,when volatility increases unusually(abnormal) in relation to previous periods something is happening in the market, then wait until the volatility peaks or when the indicator does not make any new highs (the indicator becomes flat), and in conjunction with that the trending price action doesn’t make any new lows or respectively highs. When this happens there is a high probability that the market will take a temporary turn.
Positive volatility refers to when the volatility index increases with green candlesticks this means that the buyers are more aggressive than sellers. (Can indicate a trend change)
Negative volatility refers to when the volatility index increases with red candlesticks this means that the sellers are more aggressive than buyers. (Can indicate a trend change)
INDICATOR IN ACTION
This indicator is best presented live, the graphs below gives a hint of how the Volatility Index works.
The indicator works on any market, security, currency, stock, etc. and on any timeframe.
BTCUSD
EURUSD
WALL STREET
I hope you find this indicator useful , and please comment or contact me if you like the script or have any questions/suggestions for future improvements. Thanks!
I will continue to work on this indicator, so please share your experience and feedback with me so that I can continuously improve it. Thanks to everyone that have contacted me regarding my scripts. Your feedback is valuable for future developments!
ACCESS THE INDICATOR
• Contact me on TradingView or use the links below
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Disclaimer
Copyright by Zeiierman.
The information contained in my scripts/indicators/ideas does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, or individual’s trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My scripts/indicators/ideas are only for educational purposes!
