TradeChartist Volatility Trader ™TradeChartist Volatility Trader is a Price Volatility based Trend indicator that uses simple to visualize Volatility steps and a Volatility Ribbon to trade volatility breakouts and price action based on lookback length.
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Features of ™TradeChartist Volatility Trader
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The Volatility steps consists of an Upper band, a Lower band and a Mean price line that are used for detecting the breakouts and also used in plotting the Volatility Ribbon based on the price action. The Mean Line is colour coded based on Bull/Bear Volatility and exhaustion based on Price action trend.
In addition to the system of Volatility Steps and Volatility Ribbon, ™TradeChartist Volatility Trader also plots Bull and Bear zones based on high probability volatility breakouts and divides the chart into Bull and Bear trade zones.
Use of External Filter is also possible by connecting an Oscillatory (like RSI, MACD, Stoch or any Oscillator) or a non-Oscillatory (Moving Average, Supertrend, any price scale based plots) Signal to confirm the Bull and Bear Trade zones. When the indicator detects the Volatility breakouts, it also checks if the connected external signal agrees with the trend before generating the Bull/Bear entries and plotting the trade zones.
Alerts can be created for Long and Short entries using Once per bar close .
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Note:
Higher the lookback length, higher the Risk/Reward from the trade zones.
This indicator does not repaint , but on the alert creation, a potential repaint warning would appear as the script uses security function. Users need not worry as this is normal on scripts that employs security functions. For trust and confidence using the indicator, users can do bar replay to check the plots/trade entries time stamps to make sure the plots and entries stay in the same place.
™TradeChartist Volatility Trader can be connected to ™TradeChartist Plug and Trade to generate Trade Entries, Targets etc by connecting Volatility Trader's Trend Identifier as Oscillatory Signal to Plug and Trade.
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Best Practice: Test with different settings first using Paper Trades before trading with real money
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This is not a free to use indicator. Get in touch with me (PM me directly if you would like trial access to test the indicator)
Premium Scripts - Trial access and Information
Trial access offered on all Premium scripts.
PM me directly to request trial access to the scripts or for more information.
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Volatilitytrading
Relative Volatility OscillatorRelative Volatility Oscillator is a volatility based oscillator and works very well on Lower Time Frames on volatile assets. It uses one of five periods (34,55,89,144,233) to calculate relative volatility of the current bar with the volatility trend of one of the 5 periods from the settings, using percentile rank.
Features of Relative Volatility Oscillator
Choice of one of five periods for the Relative Volatility Oscillator plot.
SOS Triangles to indicate Bull/Bear Exhaustion.
Option to plot Volatility Zones. Oscillator Values between -5 and 5 will be plotted using exhaustion colours and can be used to monitor trades closely for trend reversals.
Choice of 3 colour themes including option to plot trend based coloured price bars.
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!
