Standard Deviation Oscillator

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Standard Deviation Oscillator (STDEV OSC) v1.1

Description
The Standard Deviation Oscillator transforms traditional volatility measurements into a dynamic oscillator that fluctuates between 0 and 100. This advanced technical analysis tool helps traders identify periods of extreme volatility and potential market turning points.

Features

• Normalized volatility readings (0-100 scale)
  
• Dynamic color changes based on volatility levels
  
• Customizable overbought/oversold thresholds
  
• Built-in alert conditions
  
• Adaptive calculation using rolling windows
  
• Clean, professional visualization
  

Indicator Parameters
Length: 20; Calculation period for standard deviation
Source: close; Price source for calculations
Overbought Level: 70; Upper threshold for high volatility
Oversold Level: 30; Lower threshold for low volatility

Visual Components

- Main Oscillator Line: Changes color based on current level
- Red: Above overbought level
- Green: Below oversold level
- Blue: Normal range
- Reference Lines:
- Overbought level (default: 70)
- Oversold level (default: 30)
- Middle line (50)

Alert Conditions

1. Volatility High Alert
- Triggers when oscillator crosses above the overbought level
- Useful for identifying potential market tops or breakout scenarios
2. Volatility Low Alert
- Triggers when oscillator crosses below the oversold level
- Helps identify potential market bottoms or consolidation periods

Risk Adjustment Tool

- Scale position sizes inversely to oscillator readings
- Reduce exposure during extremely high volatility periods
- Increase position sizes during normal volatility conditions

Best Practices

1. Timeframe Selection
- Best suited for 1H, 4H, and Daily charts
- Adjust length parameter based on timeframe
2. Confirmation
- Use in conjunction with trend indicators
- Confirm signals with price action patterns
- Consider overall market context
3. Parameter Optimization
- Backtest different length settings
- Adjust overbought/oversold levels based on asset
- Consider market conditions when setting alerts

Technical Notes

- Built in PineScript v5
- Optimized for TradingView platform
- Uses rolling window calculations for better adaptability
- Compatible with all trading instruments
- Minimal performance impact on charts

Version History

- v1.1: Added dynamic coloring, customizable levels, and alert conditions
- v1.0: Initial release with basic oscillator functionality

Disclaimer
This technical indicator is provided for educational and informational purposes only. Past performance is not indicative of future results. Always conduct thorough testing and use proper risk management techniques.

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Tags: #TechnicalAnalysis #Volatility #Trading #Oscillator #TradingView #PineScript

20 thg 10

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