Volatility Momentum Score | Lyro RS

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Volatility Momentum Score | Lyro RS

Overview
The Volatility Momentum Score (VMS) combines price movement and volatility into a single, easy-to-read signal. Using z-scores, standard deviation bands, and flexible display modes, it helps traders identify trends, overbought/oversold conditions, and potential reversals quickly and effectively.

Key Features

• Price + Volatility Blend
  Tracks price action and volatility with separate z-scores and merges them into a unified momentum score.
  
  
• Standard Deviation Bands
  Upper and lower bands highlight extreme readings.
  Adjustable multipliers allow for fine-tuning sensitivity.
  
  
• Two Signal Modes
  Trend Mode: Plots “Long” and “Short” signals when momentum crosses bands.
  Reversion Mode: Colors the chart background when the score indicates stretched conditions.
  
  
• Overbought & Oversold Alerts
  ▲ markers indicate oversold conditions.
  ▼ markers indicate overbought conditions.
  
  
• Custom Colors
  Four preset color themes or fully customizable bullish/bearish colors.
  
  
• Clear Visuals
  Dynamic line coloring based on momentum.
  Candles recolored at signal points.
  Background shading for quick visual assessment.
  

How It Works

1. Calculates z-scores for both price and volatility.
   
2. Blends the z-scores into a single average score.
   
3. Compares the score against dynamic upper and lower bands.
   
4. Triggers signals, markers, or background shading depending on the chosen display mode.
   

Practical Use

• Ride trends: Follow Trend Mode signals to align with momentum.
  
• Spot reversals: Watch ▲ and ▼ markers when markets are overextended.
  
• Stay aware: Background shading highlights potentially overheated conditions.
  

Customization

• Set lookback lengths for price, volatility, and bands.
  
• Adjust band multipliers for more or less sensitive signals.
  
• Choose between Trend or Reversion mode based on trading style.
  
• Select color themes or create custom palettes.
  

⚠️ Disclaimer
This indicator is a technical analysis tool and does not guarantee results. It should be used alongside other methods and proper risk management. The creators are not responsible for any financial decisions based on its signals.

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Edited Text.

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Update: Added Design & chart fix.