Advanced Volatility Oscillator with Signals

Title: Advanced Volatility Oscillator with Signals (AVO-S)

In-Depth Description:

Introduction:
The Advanced Volatility Oscillator with Signals (AVO-S) is designed to offer traders a nuanced understanding of market volatility, combining traditional concepts with innovative visual aids and signal interpretation. This indicator is tailored for diverse financial markets, helping to identify potential trend reversals and momentum shifts.

Calculation and Methodology:

Spike Calculation: The core of AVO-S is the 'spike', calculated as the difference between the closing and opening prices (spike = close - open). This measure provides a straightforward gauge of intra-period volatility.
Standard Deviation: The indicator employs standard deviation to assess the variability of the 'spike', offering a dynamic threshold for understanding market extremities (stdDev = stdev(spike, length)).
Colored Columns: These columns visually represent the 'spike'. Their color changes based on the spike’s value relative to the zero line and the standard deviation threshold, providing an immediate visual cue of market state.
Blue Columns: Indicate moderate positive movement when the spike is above zero but below the standard deviation.
Green and Red Columns: Suggest stronger bullish (above standard deviation) and bearish (below negative standard deviation) movements, respectively.
Bullish and Bearish Signals:

The indicator generates signals based on the relationship between the 'spike' and its standard deviation.
Bullish Signals: Shown as upward triangles, these are formed when the 'spike' crosses above the standard deviation, indicating potential upward momentum.
Bearish Signals: Represented by downward triangles, these signals are generated when the 'spike' falls below the negative standard deviation, hinting at potential downward trends.
Usage and Application:

Traders can use the colored columns to quickly assess market sentiment and volatility.
The bullish and bearish signals serve as potential indicators for market entry or exit points, or for further analysis in conjunction with other technical tools.
Inspiration and Credits:
Inspired by Veryfid's original Volatility Oscillator, the AVO-S refines and builds upon these ideas to provide a comprehensive and user-friendly tool for market analysis. This indicator is a testament to the continuous evolution of technical analysis tools in the trading community.