RSI SCALPER with Dynamic ATR LinesThis is a versatile scalping indicator that combines RSI-based signals, dynamic ATR channels, and Stochastic-based divergence detection to identify potential entry and exit points in the market .
Key Features
Dynamic ATR Channel – Calculates support and resistance based on ATR (Average True Range) with configurable length and multiplier for both support and resistance lines, plus a midline
Multi-timeframe RSI – Two separate RSI calculations with independent timeframe settings: one for "KUN RSI" signals and one for "GET READY" alerts
Divergence Detection – Identifies regular and hidden bullish/bearish divergences using Stochastic D and fractals
25 MA Types – Comprehensive library of smoothing functions including WMA, HMA, EMA, TEMA, DEMA, ZLEMA, and several advanced variants
Signal Types
Signal Description
Get Ready (Long) Price crosses above dynamic support while RSI is oversold
Get Ready (Short) Price crosses below dynamic resistance while RSI is overbought
EXIT (Buy Break) Price closes above resistance (previously below) without simultaneous short signal
EXIT (Sell Break) Price closes below support (previously above) without simultaneous long signal
R-BULL / R-BEAR Regular divergence – signals potential trend reversal
H-BULL / H-BEAR Hidden divergence – signals trend continuation
Settings
RSI Parameters:
Separate timeframe selection for both RSI calculations
Configurable length and overbought/oversold levels (default 70/30)
ATR Channel:
Independent timeframe for channel calculation
Individual ATR lengths and multipliers for support (8/1.44) and resistance (14/1.44)
Divergence:
Dedicated timeframe setting
Stochastic parameters (length, smooth K, smooth D)
MA type selection for smoothing
Alerts
The indicator includes four predefined alerts for divergence signals that trigger only on confirmed bars:
Regular Bullish/Bearish Divergence
Hidden Bullish/Bearish Divergence
Use Cases
Suitable for active scalping and swing trading on crypto, forex, and stocks. Combine signals with price structure and volume for optimal use. The ATR channel adapts automatically to volatility, while divergence signals provide early warning of potential trend shifts .
Biến động
Axiom Flow: LiteAxiom Flow Lite is a specialized TradingView indicator designed for professional market bias analysis and real-time visualization of institutional order flow. It primarily serves as a decision-support dashboard, providing traders with an immediate read on trend alignment and market volatility.
📊 Core Features & Functionality
Axiom Multi-Timeframe Dashboard: Displays trend direction across four key timeframes (typically 15m, 1H, 4H, and Daily) to identify confluence and overall market bias.
Mentor Panel & Advice: Features a dedicated panel that provides real-time trade advice based on current market conditions, such as "Strong Bull," "Squeeze," or "Chop Detected".
Squeeze & Volatility Detection: Uses proprietary logic to identify "energy build-up" phases (squeezes) and cautions users to stay cash during periods of low volatility or "dead" market conditions.
Crash Protection (Circuit Breaker): Built-in filters monitor fast-timeframe momentum to detect aggressive counter-trend moves and warn users to pause trading during high-risk reversals.
🚀 Lite vs. PRO Version
While the Lite version provides essential market analysis and bias detection, it is a visual-only roadmap. Key differences include:
Lite Version: Focused on dashboard analysis, trend alignment, and visual identifying zones without automated execution markers.
PRO Version: Unlocks advanced execution tools including automated entry points, stop-loss lines, dynamic take-profit targets (Levels 1–4), and real-time bounce confirmation alerts.
Axiom Flow: PRO SuiteAxiom Flow PRO is an advanced institutional-grade toolkit designed for traders who prioritize precision, clarity, and systematic execution. This premium suite automates the detection of high-probability Fair Value Gaps (FVG) and combines them with a comprehensive Multi-Timeframe Trend Analysis dashboard, transforming complex price action into a streamlined professional workflow.
Whether you trade Indices (NQ, ES), Crypto, Forex, or Metals, Axiom Flow PRO provides the structural roadmap needed to identify where institutional money is moving and where the highest-confluence entries reside.
📊 Key Institutional Features
1. Smart 3-Candle FVG Scanner
Stop manually hunting for imbalances. Our proprietary scanner uses a strict 3-candle confirmation rule to identify high-momentum displacement zones.
Automatic Zone Detection: Draws real-time Bullish and Bearish FVG boxes with integrated mid-line (Equilibrium) markers.
Momentum Filtering: Only identifies gaps backed by three consecutive candles of the same color, ensuring you only see gaps formed by genuine trend strength.
2. Automated Execution Levels & Targets
Take the guesswork out of risk management. For every confirmed setup, the script automatically calculates and plots:
Precision Entry & Stop Loss: Hardcoded lines calculated based on the displacement range.
Dynamic Fibonacci Targets: Automatically projects four Take-Profit levels, allowing you to scale out of positions scientifically as the trend develops.
3. The Axiom Multi-Timeframe Dashboard
Your command center for market bias. Instantly view the trend alignment across four critical timeframes: 15m, 1H, 4H, and Daily.
Unified Trend Verdict: Quickly identify "Strong Bull/Bear" conditions or "Scalp Only" environments based on timeframe confluence.
Squeeze Detection: Built-in RSI volatility filters alert you when the market is in a "Squeeze" (low volatility), helping you stay cash during chop.
4. Integrated Crash Protection (Circuit Breaker)
Protect your capital during aggressive reversals. The suite includes a hidden Trend Filter that monitors fast-timeframe momentum. If price breaks key structural EMAs, the dashboard engages "Protection Mode," warning you to pause new signals until the trend stabilizes.
🛠️ Professional Overlays & Killzones
Declutter your chart by toggling essential institutional tools directly within the Axiom suite:
Session Killzones: Visual boxes for Asia, London, and New York sessions.
Institutional Pivots: Auto-plots Previous Daily, Weekly, and Monthly Highs/Lows (PDH/L).
Session VWAP: Track the volume-weighted average price for the current session.
🚀 Why Choose the PRO Suite?
While the Lite version offers basic analysis, the PRO Suite is a complete execution engine. It doesn't just show you where the market might go—it provides the exact mathematical framework for how to trade it, from entry to final target.
Master the flow. Trade with Axiom.
Universal Adaptive Tracking🙏🏻 Behold, this is UAT (Universal Adaptive Tracker) , with less words imma proceed how it compares with alternatives:
^^ comparison with non-adaptive quadratic regression (purple line), that has higher overshoots, less precision
^^ comparison with JMA and its adaptive gain. JMA’s gain is heavily limited, while UAT’s negative and positive gains are soft-saturated with p-order Möbius transform
This drop is inspired by, dedicated to, and made will all love towards Jurik Research , who retired in October 2k21. When some1 steps out, some1 has to step in, and that time it’s me (again xd). But there’s some history u gotta know:
Some history u gotta know:
In ~2008 dudes from forexfactory reverse engineered Jurik Moving Average
In late 1990s dudes from Jurik Research approximated the best possible adaptive tracking filter for evolution of prices via engineering miracles
Today in 2k26, me I'm gonna present to you the real mathematical objects/entities behind JMA top-edge engineered approximates. You will prolly be even more happy now then all the dem together back then.
Why all this?
When we talk about object tracking stuff, e.g. air defense, drones, missiles, projectiles, prices, etc, it all comes down to adaptive control and (Position & Velocity & Acceleration) aka PVA state space models (the real stuff many of you count as DSP ).
Why? Cuz while position (P) : (mean), or position & velocity (PV) : (linear regression) are stable enough in dem own ways, Position & Velocity & Acceleration (PVA) : (quadratic regression+) require adaptivity do be stable. And real world stuff needs PVA, due to non-linearity for starters.
So that’s why. If your goal is Really smoothing and no lag, u gotta go there. I see a lot of folks are crazy with it and want it, so here is it, for y’all. And good news, this is perfect for your favorite Moving Windows.
How to use it
The upper study:
The final filter (main state): just as you use other fast smoothers, MAs, etc, you know better than me here
You can also turn in volatility bands in script’s style settings, these do not require any adjustments
Finally, you can turn on, in the same place, separate trackers each based on negative and positive volatility exclusively. When both are almost equal, that indicates stability & persistence in markets. May sound like it’s nothing important, but I've never seen anything like it before. Also, if you'd allow your our inner mental gym hero gloriously arise, you can argue that these 2 separate trackers represent 2 fair prices (one for sellers, one for buyers). All better then 1 imaginary fair price for both (forget about it)
The lower study:
The lower study: you can analyze streams of upward of downward volatilities separately. This is incredibly powerful
You can also turn these off and turn on neg & pos intensities, and use them as trend detector, when each or both cross 1.5 (naturally neutral) threshold.
^^ Upper study with expected typical and maximum volatility bands turned On
...
The method explained
What you got in the end is non-linear, adaptive, lighting fast when needed and slow when required price tracking. All built upon real math entities/objects, not a brilliantly engineered approximation of them. No parameters to optimize, data tells it all.
... It all starts from a process model, in our cause this is...
MFPM (Mechanical Feedback Price Model)
Doesn’t make gaussian assumptions like most quant mainstream tech, accepts that innovations are Laplace “at best”, relies in L inf and L0 spaces.
I created this model neither trynna fit non-fitting ARMA / variants, nor trynna be silly assuming that price state evolution and markets are random.
Theory behind it: if no new volume comes, then price evolution would be simply guided by the feedback based on previous trading activity, pushing prices towards the midrange between 2 latest datapoints, being the main force behind so called “pullbacks” and reason why most pullbacks end just a bit past 50% of a move.
This is the Real mechanical feedback based mean reversion, that is always there in the markets no matter what, think of it as a background process that is always there, and fresh new volume deviates prices away from it. Btw, this can also be expressed as AR2 with both phis = 0.5 .
Then I separate positive and negative innovations from this model and process them separately, reflecting the asymmetry between buy and sell forces, smth that most forget. Both of these follow exponential distribution . Each stream has its own memory so here we use recursive operators . We track maximum innovations (differences between real and expected datapoints) with exponentially decaying damping factor, and keep tracking typical innovation, with the same factor.
Then we calculate what’s called in lovely audio engineering as “ crest factor ”, the difference is we don’t do RMS and stuff. But hey again we work with laplace innovations, so we keep things in L0 and L inf spirit. Then we go a couple of steps further, making this crest factor truly relative (resolution agnostic), and then, most importantly, we apply a natural saturation on it based on p-order Möbius transform, but not with arbitrary p and L, but guided by informational limits of the data. These final "intensity" parameters are what we need next to make our object tracking adaptive.
Extended Beta(2, 2) Window
This is imo the main part of this. Looking at tapering windows in DSP and how wavelets are made from derivatives of PDF functions of probability distributions, I figured that why use just one derivative? That made me come up with Universal Moving Average , that combines PDF and CDF of Beta(2, 2) distribution . And that is fine for P (position) tracking model.
Here we need PVA (position & velocity & acceleration). We can realize that everything starts from PDF, and by adding derivatives and anti-derivatives of it as factors of final window weights, we can create smth truly unique, a weightset that is non-arbitrary and naturally provides response alike quadratic regression does, But, naturally smoothed.
Why do I consider this a discovery, a primordial math object? Because x^2 itself and Beta(2, 2) based on it are the only primitives, esp out of all these dozens of DSP tapering windows, that provide you a finite amount of derivatives. You can keep differentiating Hann window until the kingdom f come, while Welch window aka Beta(2, 2) has a natural stopping point, because the 3rd derivative is 0, so we can’t use it. Symmetrically, we do 2 steps up from PDF, getting 1st and second anti-derivatives. What’s lovely, symmetrically, 3rd antiderivative even tho exist, it stops making any sense. 2nd one still makes sense, it’s smth like “potential” of probability distribution, not really discussed in mainstream open access sources.
Finally, the last part is to introduce adaptivity using these intensity exponents we’ve calculated with MFPM. We do 2 separate trackers, one using the negative intensity exponent, another one uses positive intensity exponent.
And at the end, even tho using both together is cool, the final state estimate is calculated simply as the state which intensity has higher.
^^ impulse response of our final kernel with fixed (non adaptive) intensity exponents: 1 (blue) and 2 (red). You see it's all about phase
…
And that’s all folks.
…
Actually no …
Last, not least, is the ability to add additional innovation weight to the kernel:
^^ Weighting by innovations “On”. Provides incredible tracking precision, paid with smoothness. I think this screenshot, showing what happened after the gap, and how the tracker managed to react, explains it all.
...
Live Long and Prosper, all good TradingView
∞
[codapro] Elite Momentum & Smart Money Detector
Elite Momentum & Smart Money Detector
Overview
The Elite Detector is a non-repainting indicator that merges Smart Money Concepts, Adaptive Volatility-Based Momentum, and Multi-Timeframe Trend Confluence to identify high-probability trade setups. This tool helps confirm institutional intent and market pressure before triggering actionable signals.
Core Systems
Smart Money Concepts (SMC)
• Highlights institutional order blocks
• Detects equal highs/lows as liquidity zones
• Automatically cleans up outdated zones for clarity
Adaptive Momentum Engine
• Momentum calculated with volatility-adjusted smoothing
• Normalized scale from -100 to +100
• Candle coloring reflects trend strength dynamically
Squeeze Detection System
• Flags volatility contraction zones using Bollinger and Keltner channels
• Background shading highlights compression zones
• Histogram shows directional breakout pressure
Multi-Timeframe Trend Validation
• Aligns signals with higher timeframe momentum
• Built-in logic auto-selects appropriate HTF per chart
• Reduces false signals and improves timing
Signal Logic
Buy Signal appears when:
Momentum crosses from negative to positive
Squeeze condition is active
Higher timeframe confirms bullish trend
Sell Signal appears when:
Momentum crosses from positive to negative
Squeeze condition is active
Higher timeframe confirms bearish trend
All signals are non-repainting and appear only once all conditions are met.
Visual Dashboard (Top-Right Corner)
Displays real-time confirmation across five categories:
Momentum: Current trend direction and strength
Squeeze: Indicates if volatility is compressed
HTF Trend: Confirms higher-timeframe alignment
Volatility: Current volatility phase (low, normal, or high)
Signal Status: Buy, Sell, or Neutral (Wait)
Chart Visuals
Candle Colors:
• Bright green/red = Strong momentum
• Faded green/red = Weak momentum
Background Colors:
• Orange = Squeeze is active
• Clear = Normal market activity
Boxes:
• Green = Bullish order blocks
• Red = Bearish order blocks
Dashed Lines:
• Red = Equal highs (liquidity zones above)
• Green = Equal lows (liquidity zones below)
Alert Conditions
Includes three prebuilt alerts for automation and webhook systems:
Elite Buy Signal
Elite Sell Signal
Squeeze Activation
These alerts allow users to respond to market shifts in real time or integrate with automated trading workflows.
Best Practices
Wait for Confluence: Confirm all three systems (momentum, squeeze, HTF trend) before entering
Watch Order Blocks: Institutional zones often act as support/resistance
Monitor Liquidity Zones: Be cautious of stop hunts near equal highs/lows
Use Dashboard Cues: Let the HUD validate your setup
Always Use Risk Management: This tool increases probability, not certainty
Example Setup:
1. Squeeze background appears
2. Buy signal triangle confirms
3. Dashboard shows: Momentum strong up, Squeeze on, HTF trend up
4. Price bounces off green order block
→ High-probability long entry
Why It Works
This tool leverages multiple uncorrelated concepts to filter low-quality trades and highlight setups with real institutional backing:
Order Blocks and Liquidity Zones track smart money footprints
Volatility-adjusted Momentum captures real energy shifts
Multi-Timeframe Confluence confirms trades in the broader context
Non-repainting signals ensure reliability
Final Note
The Elite Detector is designed to show you:
Where smart money is positioned,
When the market is coiling for a move,
and Which direction is supported by momentum and trend.
Use it as your high-probability entry engine — across any market or timeframe.
Disclaimer
This tool was created using the CodaPro Pine Script architecture engine — designed to produce robust trading overlays, educational visuals, and automation-ready alerts. It is provided strictly for educational purposes and does not constitute financial advice. Always backtest and demo before applying to real capital.
Luminous Volatility Flux [Pineify]```
Luminous Volatility Flux - Dynamic ATR Bands with Hull Moving Average Baseline
The Luminous Volatility Flux indicator is a sophisticated trend-following and volatility analysis tool that combines the responsiveness of the Hull Moving Average (HMA) with adaptive ATR-based bands that expand and contract based on real-time market volatility conditions. This indicator helps traders identify trend direction, volatility regimes, and potential breakout opportunities with high-probability entry signals.
Key Features
Hull Moving Average baseline for low-lag trend detection
Dynamic volatility bands that breathe with market conditions
Flux Factor system comparing short-term vs long-term ATR
Volatility-filtered breakout signals to reduce false entries
Gradient-filled zones for intuitive visual analysis
Real-time bar coloring based on trend direction
How It Works
The indicator operates on three core calculation layers:
1. Hull Moving Average Baseline
The foundation of this indicator is the Hull Moving Average, calculated using the formula: WMA(2*WMA(n/2) - WMA(n), sqrt(n)). Unlike traditional moving averages, the HMA dramatically reduces lag while maintaining smoothness. This makes it ideal for identifying trend changes earlier than conventional EMAs or SMAs. When the HMA is rising, the baseline turns green indicating bullish momentum; when falling, it turns red for bearish conditions.
2. Volatility Flux Factor
The unique aspect of this indicator is the Flux Factor calculation. It compares short-term ATR (default 14 periods) against long-term ATR (default 100 periods) to determine the current volatility regime:
Flux Factor > 1.0 = Volatility Expansion (market is more volatile than usual)
Flux Factor < 1.0 = Volatility Compression (market is in a squeeze)
This ratio creates a dynamic multiplier that causes the bands to expand during high volatility periods and contract during consolidation phases.
3. Dynamic Band Calculation
The upper and lower bands are calculated as: Baseline ± (Short ATR × Multiplier × Flux Factor). This means the bands automatically widen when volatility increases and tighten during quiet market conditions, providing context-aware support and resistance levels.
Trading Ideas and Insights
Trend Following: Trade in the direction of the baseline color. Green baseline suggests looking for long opportunities; red baseline suggests short opportunities.
Volatility Breakouts: The indicator plots "Flux" signals when price breaks above the upper band (bullish) or below the lower band (bearish) during volatility expansion phases. These signals indicate potential momentum continuation.
Mean Reversion: During compression phases (tight bands), prices often revert to the baseline. Consider taking profits near the bands and re-entering near the baseline.
Squeeze Detection: When bands are unusually tight (Flux Factor < 1), the market is coiling for a potential explosive move. Prepare for breakout trades.
How Multiple Indicators Work Together
This indicator integrates three distinct technical analysis concepts into a cohesive system:
The Hull Moving Average provides the trend direction foundation with minimal lag. The dual ATR comparison (short vs long) creates the Flux Factor that measures relative volatility. The dynamic bands combine both elements, using the HMA as the center and ATR-based deviations that scale with the Flux Factor.
The synergy works as follows: The HMA identifies the trend, the Flux Factor determines market regime (expansion vs compression), and the bands provide dynamic support/resistance levels. Breakout signals only trigger when all components align - price breaks the band AND volatility is expanding. This multi-layered approach filters out many false signals that would occur with static bands or simple moving average crossovers.
Unique Aspects
Unlike Bollinger Bands that use standard deviation, this indicator uses ATR ratio-based dynamic bands that better capture directional volatility
The Flux Factor concept is original - comparing two ATR timeframes to create a volatility regime indicator
Breakout signals are filtered by volatility expansion, reducing false signals during choppy, low-volatility conditions
Gradient fills provide instant visual feedback on the strength of the bullish or bearish zones
How to Use
Add the indicator to your chart. It works on all timeframes and instruments.
Observe the baseline color for overall trend direction (green = bullish, red = bearish).
Watch for band expansion/contraction to gauge volatility regime.
Look for "Flux" signals for potential breakout entries - these appear only during volatility expansion.
Use the gradient zones to identify potential support (lower green zone) and resistance (upper red zone) areas.
Customization
Baseline Length (default: 24) - Controls the HMA period. Lower values = more responsive but noisier; higher values = smoother but more lag.
ATR Length (default: 14) - Short-term ATR period for band calculation. Standard setting works well for most markets.
Flux Multiplier (default: 2.0) - Controls band width. Increase for wider bands (fewer signals), decrease for tighter bands (more signals).
Flux Sensitivity (default: 100) - Long-term ATR period for Flux Factor calculation. Higher values create a more stable volatility reference.
Conclusion
The Luminous Volatility Flux indicator offers traders a comprehensive view of market conditions by combining trend detection, volatility analysis, and signal generation into one elegant tool. Its adaptive nature makes it suitable for various market conditions - from trending markets where it identifies direction and momentum, to ranging markets where it highlights compression and potential breakout zones. The volatility-filtered signals help traders focus on high-probability setups while the visual gradient fills make chart analysis intuitive and efficient.
Note: This indicator is designed as a technical analysis tool. Always use proper risk management and consider multiple factors before making trading decisions. Past performance does not guarantee future results.
```
Hooke's Law: Market ElasticityHooke's Law: Market Elasticity is a physics-based mean reversion system that models price action using the principles of Classical Mechanics.
Most technical indicators treat the market as a purely statistical entity. This script takes a different approach, treating the market as a physical object with Mass (Volume) and Stiffness (Volatility) . By adapting Hooke’s Law of Elasticity (𝐹=−𝑘𝑋), it visualizes the "Tensile Stress" between price and its equilibrium, identifying the exact moment when a trend becomes unsustainable and must "snap back."
The Physics of Trading
In physics, Hooke's Law states that the force needed to extend a spring is proportional to the distance it is stretched. We map this to financial markets using four key components:
Equilibrium (𝑋=0): The "Resting State" of the market, calculated using a Volume-Weighted Moving Average (VWMA) . This represents the fair value where buyers and sellers agree.
2. Displacement (𝑋): The distance price travels away from this equilibrium.
3. Spring Constant (𝑘): We use Volatility (Standard Deviation) to measure the market's "stiffness."
• Low Volatility: The spring is loose; price can wander far without snapping.
• High Volatility: The spring is stiff; even small deviations create massive tension.
4. Force (𝐹): The calculation is weighted by Relative Volume . A price spike on low volume has low force (easy to reverse), while a spike on high volume carries high momentum (harder to reverse).
Visual Guide & Signals
The indicator uses a hierarchy of visuals to guide you through the trade lifecycle:
1. The Elastic Ribbon (Heatmap)
Connects Price to the Baseline. As the ribbon turns Solid White , the market has reached its Elastic Limit (Critical Zone). This is your warning that a move is overextended.
2. The "Golden" Labels (LONG / SHORT)
These are your Entry Signals . They appear only when the physics "snap" is confirmed by an internal momentum filter and price action.
3. The Small Circles (Minor Reversions)
These dots represent "Minor Snaps." They occur when the elastic tension releases, but the momentum filter hasn't fully confirmed a major reversal.
• Usage: These are excellent Early Warning signs or Scale-In points for aggressive traders.
Strategy: Entries, Exits & Take Profits
This script is designed as a complete system. Here is how to manage the trade using the visual cues:
• Entry: Wait for a LONG or SHORT label to appear.
• Stop Loss: Use the Solid White Line that appears automatically with the signal. If price touches this line, the physics setup has failed—exit immediately.
• Take Profit 1 (The Equilibrium): The Gray Baseline represents the market's center of gravity. In mean reversion trading, price tends to snap back to this line. This is the statistically highest-probability target.
• Take Profit 2 (The Circles): If you are in a trade and a Circle appears in the opposite direction, it indicates the market is experiencing counter-tension. This is an ideal place to secure partial profits or trail your stop.
Settings & Configuration
• Baseline Length (Default: 34): The lookback period for the Center of Gravity.
• Elasticity Limit (Default: 2.618): The Golden Ratio is used as the standard deviation threshold for the "Critical Zone."
• Volume Weighting (Default: True): Recommended. Adds the "Mass" component to the physics calculation.
• Stop Loss Buffer (Default: 0.5): The distance (in Sigma) for the Stop Loss placement.
Risk Disclaimer
Not Financial Advice: This indicator is designed for educational and analytical purposes only. It visualizes market data based on mathematical formulas (Hooke's Law and Statistical Deviation) and does not guarantee future performance or profits.
Market Risks: Financial trading involves significant risk. The "Critical Zones" and "Signals" generated by this script identify statistical extremes, but markets can remain irrational or overextended for long periods ("Plastic Deformation").
Usage: Do not trade blindly based on these signals. Always use this tool in conjunction with your own analysis, risk management, and stop-losses. The author assumes no responsibility for any trading losses incurred while using this script.
Daily ATR + DeltaThis indicator shows last value of ATR with this parameters: Length 14, Smoothing RMA, Timeframe 1 day i Wait for timeframe closes.
Also, it shows Delta in percentage.
Delta is calculated in this way: -((the last one-minute closing price of the previous day's stock exchange)-(last price at the moment))/(value of ATR) * 100
Notice:
If you are in postmarket or premarket, delta will be also calculated from the "the last one-minute closing prices of the previous day's stock exchange" not from the "the last one-minute closing price of the todays stock exchange".
You dont need to have indicator Average True Range for this indicator to be working.
Overshoot Stop Detector (EMA20 + ATR)How to read the signals (to match what you're doing):
An "OS" (Offside) above the previous bar indicates an overshoot.
A "STOP" (Stop) below the current bar indicates a potential "stop-loss" after an overshoot.
Then you can set a Beer-style trigger, for example:
Enter when the price breaks through the high of the STOP bar.
Or enter when the price closes green above the high of the STOP bar.
Then set your TP (Take Profit) at 10 to 15% as you've hypothesized.
(5M) REG SuperTrend Pullback SystemThis indicator implements a rule-based SuperTrend pullback system
designed for short-term trend continuation.
Core features:
• Regression-based SuperTrend with flip detection
• Pullback + reclaim entry logic (non-repainting, bar-close confirmed)
• Regime filter (Trend vs Range suppression)
• Exhaustion detection to avoid late entries
• ADX + EMA bias alignment
• USDT Dominance risk filter (risk-on / risk-off)
• Clear BUY / SELL and Pullback AI-style entry labels
This is NOT a trading bot and does NOT place orders.
All signals are for analytical and educational purposes only.
Institutional Confluence Nexus [Pro]The Problem: Noise vs. Signal
In the world of Smart Money Concepts (SMC), traders are often overwhelmed by "chart clutter." Standard indicators blindly highlight every Fair Value Gap (FVG) and Order Block (OB), regardless of whether the market is trending, ranging, or dead. This leads to analysis paralysis and low-probability entries.
The Institutional Confluence Nexus was built to solve this. It is not just a structure detector; it is a filtering engine. It uses a multi-factor model to hide low-probability zones and only highlight setups where Structure, Volume, and Momentum align.
The "Quantum" Integration
This script includes a built-in Quantum Regression Oscillator (QRO) engine running in the background. Unlike standard RSI or MACD which are reactive (lagging), the QRO uses Linear Regression mathematics to project momentum trajectory.
By combining institutional structure (Price Action) with quantum momentum (Math), this tool generates specific high-probability signals that only appear when price action and momentum are in perfect agreement.
How It Works & Visual Guide
This indicator is a complete trading suite. Here is what every symbol and color on your chart represents:
1. The "Nexus" Reversal Signals (Triangles)
Symbol : Green Triangle (Up) / Red Triangle (Down) labeled NEXUS.
Logic : These appear when price taps a valid Order Block that aligns with the macro trend (200 EMA).
Meaning : These are your primary "Trend Join" setups. They indicate that the institutional trend is resuming after a retracement.
2. High-Volume Breakouts (Bar Colors)
Symbol : Yellow Candles (Bullish) / Orange Candles (Bearish).
Logic : The script detects when a Break of Structure (BOS) occurs with Above-Average Volume.
Meaning : A breakout without volume is often a fakeout. These colored bars confirm that institutions are fueling the move. If you see a Yellow bar, it means "Smart Money" is buying the breakout.
3. QRO Confluence Signals (Labels)
These are the most advanced signals in the suite, combining Price Action with the internal Oscillator:
SNIPER (Blue/Purple) : The strongest reversal signal.
Condition : Price taps a Fair Value Gap + The internal QRO is at extreme volatility bands (Oversold/Overbought).
PB BUY / PB SELL (Aqua/Orange) : A trend continuation signal.
Condition : Price pulls back into a Fair Value Gap + The internal QRO confirms momentum is still healthy (above/below midline).
Note : These signals automatically draw a Red Line at the invalidation point (Stop Loss) to help you manage risk immediately.
4. The Confluence Dashboard
A non-intrusive Heads-Up Display (HUD) in the corner gives you a snapshot of the market state:
Trend : Is price above/below the 200 EMA?
Volume : Is current volume anomalous (High) or normal?
Structure : Are we breaking up, down, or ranging?
Settings & Customization
Smart Money Structure: Toggle FVGs and Order Blocks on/off.
FVG Extend: Control how far the gap "zones" extend to the right to see them as support/resistance zones.
Volume Filter: Enable/Disable the volume requirement (Keep enabled for higher strike rate).
Risk Management: Adjust the "Lookback" period for the automatic Stop Loss lines.
For Developers (Open Source)
I have kept the code open-source to foster learning in the Pine Script community. You can study how:
ta.linreg is used to smooth RSI data for the internal QRO engine.
box.new and line.new are used for dynamic drawing and extending zones.
var variables are used to store historical FVG levels to detect precise crossovers.
Disclaimer:
This tool is designed to assist with technical analysis and educational purposes. It does not guarantee profits. Always manage your risk and use this in conjunction with your own analysis.
Sri - 26 Volume Bar: D/W/M with SMA 20📊 Sri – 26 Volume Bar (D / W / M)
Enhanced Volume Visibility with Buy–Sell Range & MA
Sri – 26 Volume Bar is a visual-first, multi-timeframe volume analysis tool created to solve a common TradingView limitation:
Traditional volume (including free built-in volume) becomes visually compressed, unreadable, or unusable when combined with other indicators or panels.
This script reconstructs and re-displays volume in a clean, scalable, and directional format, making volume clearly visible even in indicator-heavy layouts.
🔹 Why this indicator exists (Problem → Solution)
❌ Problem with traditional volume
Built-in volume bars:
Become too small when multiple indicators are applied
Lose relative clarity across timeframes
Do not show buy vs sell participation
Are hard to interpret when scaling is shared with other plots
✅ Solution provided by this script
Volume is redrawn independently using object-based rendering
Bars are scaled relative to recent volume, not chart height
Display is forward-projected, avoiding overlap with price or indicators
Buy and Sell volume ranges are visually separated
Result: Clear, readable volume analysis even in complex chart setups
🔹 Core Features & Originality
1️⃣ Multi-Timeframe Volume Reconstruction (D / W / M)
Volume is fetched from Daily, Weekly, or Monthly timeframes using request.security()
Timeframe selection:
Auto – adapts to chart timeframe
Manual – fixed D / W / M
Enables higher-timeframe volume insight on any chart
2️⃣ Buy–Sell Volume Range Visualization
Each volume bar is split into Buy and Sell ranges
Calculated using candle anatomy:
Buy volume → (Close − Low)
Sell volume → (High − Close)
Helps identify:
Accumulation vs distribution
Demand vs supply imbalance
Participation strength within each bar
This goes beyond standard volume by showing where volume occurred, not just how much.
3️⃣ Enhanced Visibility vs Free Traditional Volume
Volume bars:
Maintain consistent height and clarity
Are independent of other indicators
Remain readable even when many scripts are active
Ideal for traders who:
Use multiple indicators
Trade from clean layouts
Rely on volume confirmation but dislike clutter
4️⃣ Volume Moving Average (Optional Confirmation)
SMA or EMA applied to higher-timeframe volume
Helps identify:
Volume expansion
Volume contraction
Breakout or exhaustion conditions
🔹 How to use this indicator
Best use cases:
Confirm breakouts using higher-TF volume strength
Spot accumulation before price expansion
Detect weak moves with low participation
Improve volume readability on crowded charts
Suggested setup:
Intraday charts → Auto (Daily volume)
Swing trading → Weekly volume
Positional analysis → Monthly volume
⚠️ Important Notes
This is not a buy/sell signal indicator
Buy/Sell volume is an estimated range, intended for comparative analysis
Designed as a confirmation and context tool, not a standalone system
🔒 Why the source is protected
This script uses:
Custom multi-TF array handling
Object-based volume rendering
Dynamic scaling independent of chart compression
Forward-projection logic for clean visualization
While the concept and usage are fully explained, the implementation is protected to preserve originality.
✅ Summary
Sri – 26 Volume Bar transforms traditional volume into a clear, scalable, directional tool, solving the visibility limitations of standard volume — especially when multiple indicators are used.
Combined Indicators V2 by DeepsageCombined Indicators V2 – Overview
Combined Indicators V2 is an advanced trading indicator that builds on Combined Indicators V1 by Deepsage and Weighted Market Screener by Deepsage. It is designed to provide precise signals for long and short trades on very low timeframes (1m–5m) while aligning entries with the overall market trend.
Background: The Original Indicators
1. Combined Indicators V1 (Deepsage)
Combines three specialized indicators to generate signals:
Breakout Indicator: Uses Bollinger Bands and volume behavior to identify potential breakout trades.
Price Action Indicator: Detects price interaction with support and resistance levels, incorporating trend, volatility, and candlestick patterns.
Range Trading Indicator: Calculates RSI or Stochastic oscillator and plots signals against predefined upper and lower bands for range-bound markets.
2. Weighted Market Screener (Deepsage)
Monitors the overall market trend using 12 different indicators, each weighted based on its relevance.
Produces a market trend rating: strong buy, buy, neutral, sell, or strong sell.
What’s New in V2
1. Trend-Aligned Entries
In V2, the entry indicators (Breakout, Price Action, Range Trading) only generate signals when the Market Screener confirms the trend (can be turned off).
Long trades: Screener must rate the market as Buy or Strong Buy.
Short trades: Screener must rate the market as Sell or Strong Sell.
2. Session-Based Optimization
V2 supports the NY, London, and Tokyo trading sessions.
Each indicator can be restricted to the session where it performs best (can be turned off):
NY: Breakout Indicator
London: Price Action Indicator
Asia: Range Trading Indicator
3. Additional Enhancements
Market Screener locked to 15-minute timeframe, giving a clear view of the overall trend while entries are still executed on 1-minute charts.
Fully customizable alerts for buy and sell signals.
Settings allow traders to toggle indicators and alerts on/off for maximum flexibility.
Summary
Combined Indicators V2 is a powerful, session-aware, trend-aligned trading tool that merges multiple strategies into one cohesive system. It allows traders to:
Trade low timeframes with precise entries
Only take trades that align with the overall market trend
Optimize strategies based on trading sessions
Customize alerts and indicator settings for personal preferences
SIV Trading LightSmartInVisions Trading Light (SIV Trading Light)
**Multi-Factor Market Regime & Trade Bias Indicator**
---
## Overview and Purpose
**SmartInVisions Trading Light (SIV Trading Light)** is a market **context and trade-bias indicator**, not a signal generator.
Its purpose is to answer one practical trading question:
> *“Given the current market conditions, is it statistically more favorable to think LONG, SHORT, or stay neutral?”*
Instead of relying on a single indicator, SIV Trading Light **combines several independent market dimensions into one coherent score**.
This allows traders to avoid over-trading in unfavorable environments and to align trades with the dominant market context.
---
## Why This Is NOT a Simple Indicator Mashup
This script does **not** simply merge popular indicators.
Each component is:
* normalized,
* weighted,
* evaluated against thresholds,
* and translated into **positive, neutral, or negative score contributions**.
Only the **combined interaction** of these components produces the final trade bias.
No single indicator can dominate the result on its own.
---
## Core Calculation Concept
At every bar, the indicator evaluates multiple independent factors.
Each factor contributes points to a **total bias score**.
The score is then classified into one of three states:
* **LONG bias**
* **NEUTRAL**
* **SHORT bias**
The indicator does **not** predict price direction.
It classifies the **current trading environment**.
---
## Components and How They Work Together
### 1. Trend Structure (Moving Averages)
**Purpose:** Identify the dominant directional structure.
* Fast MA vs Slow MA relationship
* Price position relative to the slow MA
* Optional slope confirmation
Contribution:
* Positive points in aligned uptrends
* Negative points in aligned downtrends
* Neutral in mixed or unclear structures
---
### 2. Momentum (RSI)
**Purpose:** Measure directional strength.
* RSI above upper threshold → bullish momentum
* RSI below lower threshold → bearish momentum
* Mid-range RSI → neutral
Momentum refines trend signals by confirming or weakening them.
---
### 3. Trend Quality / Choppiness (ADX)
**Purpose:** Filter out sideways or noisy markets.
* ADX above threshold → trending environment
* ADX below threshold → choppy environment
ADX does **not** define direction.
It modifies how much weight trend and momentum signals receive.
---
### 4. Volatility Risk (ATR%)
**Purpose:** Penalize structurally dangerous environments.
ATR is normalized as a percentage of price:
* Excessively high volatility → risk penalty
* Extremely low volatility → participation penalty
* Balanced volatility → neutral or positive contribution
This prevents aggressive trading in unstable regimes.
---
### 5. Market Participation (Relative Volume)
**Purpose:** Confirm whether moves are supported by volume.
* High relative volume → confirmation
* Low volume → weaker confidence
Volume acts as a confidence modifier, not as a directional signal.
---
### 6. Higher-Timeframe Market Regime (Optional)
**Purpose:** Align trades with the dominant higher-timeframe context.
On a user-defined **regime timeframe**, the script evaluates:
* trend structure
* RSI momentum
The regime filter can:
* amplify signals aligned with the higher timeframe
* suppress signals against it
This avoids trading aggressively against dominant market structure.
---
## Multi-Timeframe Design
The indicator separates two concepts:
* **Trading Timeframe**: the chart timeframe used for execution
* **Regime Timeframe**: a higher timeframe used for contextual bias
This design allows the same logic to be applied to:
* day trading
* swing trading
* longer-term investing
---
## Presets and Customization
Built-in presets are provided for:
* Day Trading (USA / Europe)
* Swing Trading (USA / Europe)
* Investing (USA / Europe)
Presets define:
* factor weights
* thresholds
* score boundaries
They do **not** define:
* timeframes
* moving average types or lengths
This keeps structural decisions under user control while simplifying parameter tuning.
A **Custom mode** allows full manual configuration.
---
## Visual Output
The indicator provides:
* two moving average overlays (fast / slow)
* an optional background color reflecting the current bias
* a compact badge summarizing mode, score, and state
* an optional breakdown table showing how each factor contributes to the score
These visuals are designed to explain **why** the current bias exists.
---
## Alerts
Alerts are based on **state changes**, not on every bar.
Alert outputs include:
* numerical state (`1 = LONG, 0 = NEUTRAL, -1 = SHORT`)
* score value
* rounded moving average values
This allows integration into discretionary or systematic workflows without alert noise.
---
## How This Indicator Should Be Used
✔ As a **trade filter**
✔ To avoid trading in unfavorable conditions
✔ To align discretionary entries with market context
---
## What This Indicator Is NOT
✘ Not a buy/sell signal
✘ Not a prediction model
✘ Not a replacement for risk management
---
## Credits and License
**Publisher:** SmartInVisions GmbH
**Concept & Design:** Reiner Ernst
**Implementation & Iterative Development:** SmartInVisions GmbH + ChatGPT (OpenAI)
**License:** Mozilla Public License 2.0 (MPL-2.0)
---
## Disclaimer
This script is provided for educational and research purposes only.
It does not constitute financial advice. Trading involves risk.
---
M1 propath📊 M1 PROPATH – Smart Trend & Level Indicator
M1 PROPATH is a powerful all-in-one trading indicator designed for trend identification, momentum confirmation, and precise entry zones. It combines four proven tools into a single, easy-to-use system.
🔹 Included Components
🔁 Supertrend
Identifies overall market trend (Bullish / Bearish)
Helps traders stay on the right side of the market
Useful for trend-following and trailing stop logic
📈 Bollinger Bands (BB)
Measures volatility and price expansion
Highlights overbought and oversold zones
Helps in spotting pullbacks and breakout setups
📉 EMA Pack (Exponential Moving Averages)
Shows dynamic support and resistance
Confirms trend strength and momentum
Useful for scalping, intraday, and swing trading
🧭 Gann Levels (Square of 9 Based)
Displays important price levels derived from Gann theory
Helps identify high-probability reversal and reaction zones
Works perfectly with BB and Supertrend for confluence-based entries
Squeeze Indicator Squeeze Indicator is a volatility-focused indicator designed to identify periods of compression and the early transition into expansion.
It measures Bollinger Band Width (BBW) using a 20-period Bollinger Band to quantify how tightly price is coiling, then smooths BBW with a 16-period SMA and a faster 8-period EMA to distinguish structural compression from short-term changes in volatility.
The BBW itself is displayed as a subtle grey filled area to emphasize relative contraction and expansion, while a squeeze condition is highlighted whenever BBW falls below both its SMA and EMA, signaling an environment where volatility is suppressed and a directional move is more likely to follow.
Crossovers of the EMA above or below the SMA provide early warnings of volatility expansion or renewed compression, making the indicator especially useful for timing breakouts, anticipating regime shifts from range to trend, and managing options strategies that depend on changes in volatility rather than price direction.
Session VWAP Cumulative BiasThe Session VWAP Cumulative Bias indicator is designed to differentiate between "choppy" price action and true "institutional" trend days. Unlike standard VWAP indicators that only show where price is now, this tool tracks the cumulative sentiment of the entire session.
Core Functions:
Cumulative Z-Score Logic: It calculates the distance between price and VWAP (in Standard Deviations) and sums it up over the course of the day. This reveals the "weight" of the market bias—the longer price stays pinned away from the VWAP, the more extreme the histogram becomes.
Scale Protection: It includes a "Capping" mechanism that prevents morning gaps or low-volume outliers from distorting the scale, ensuring the histogram remains readable from open to close.
Momentum vs. Regime Toggles: Users can switch between VWAP Slope (measuring the speed of the average's movement) and Cumulative Bias (measuring total session dominance).
Visual price Overlay: It automatically colors the price candles and plots a session-anchored VWAP line on the main chart, providing a clear visual of when price is "fair" versus "overextended."
How to read it:
Trend Confirmation: A steadily growing "mountain" in the histogram confirms an institutional trend day where dips are being bought (or rips sold).
Mean Reversion: When price hits a new high but the Cumulative Histogram begins to round off or diverge, it signals that the "elastic band" is stretched and price is likely to return to the orange VWAP line.
Regime Shifts: A cross of the zero-line on the histogram indicates a total shift in session control from buyers to sellers (or vice versa).
TCT - Range BreakTCT - Range Break
Capture morning range breakouts with precision.
TCT - Range Break automatically tracks the high and low of a configurable time window and signals when price breaks out—giving you clear, actionable entries for directional moves.
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
✨ FEATURES
🎯 Automated Range Detection
Captures session high/low during any user-defined window (default: 6–10 AM ET)
Fully customizable start, end, and box display times
All times in Eastern Time (auto-adjusts for DST)
📦 Color-Coded Breakout Boxes
🟢 Green — Price broke above range high (bullish)
🔴 Red — Price broke below range low (bearish)
🟡 Yellow — Both levels broken (indecisive/choppy)
⚪ Gray — No breakout (range-bound)
🐂🐻 Instant Breakout Labels
Bull/Bear emoji appears the exact moment price breaks the range
Customizable emoji and size options
📈 Built-in Statistics Dashboard
Real-time stats showing historical breakout patterns
Tracks total sessions, breakout counts, and percentage distribution
Validate your edge with hard data
🔔 Alert-Ready
Pre-configured alerts for bullish and bearish breakouts
Never miss a trade—get notified instantly
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
🎮 HOW IT WORKS
Three key times define the indicator:
Range Start (default 6 AM ET) — Begin tracking session high/low
Range End (default 10 AM ET) — Lock in the range, start monitoring for breakouts
Box End (default 4 PM ET) — Stop drawing the visual box
The indicator draws two nested boxes:
Overall Box (lighter) — Full monitoring window from Range Start to Box End
Monitored Range Box (darker) — The specific window where high/low was established
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
📊 STATISTICS TABLE
The dashboard shows you:
Only High (Green) — Clean bullish breakouts
Only Low (Red) — Clean bearish breakouts
Both Broken (Yellow) — Choppy, reversal-prone sessions
Neither (Gray) — Range-bound, low volatility days
One Side Only — Total clean directional moves (Green + Red)
Use this data to understand market behavior and validate your strategy.
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
🛠️ CUSTOMIZATION
Adjustable time windows for any market or session
Custom colors for all breakout states
Transparency controls for chart readability
Border styles (Solid, Dashed, Dotted)
Emoji customization (type and size)
Toggle statistics table on/off
Flexible table positioning
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
📈 BEST FOR
US Index Futures (ES, NQ, YM, RTY) — Default settings optimized
Forex — Adjust for London/NY session opens
Stocks & ETFs — Track opening range breakouts
Crypto — Set custom windows for your preferred sessions
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
⚠️ REQUIREMENTS
Timeframe: Works on any timeframe below 1 hour (1m, 5m, 15m, 30m, 45m)
A warning will display if applied to 1H or higher
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
💡 TRADING TIPS
High "One Side Only" % → Market picks a direction—ideal for breakout trades
High "Both Broken" % → Expect fakeouts—wait for confirmation or fade extremes
High "Neither" % → Low volatility—consider range strategies instead
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
🔔 SETTING UP ALERTS
Click the indicator name in chart legend
Select "Add Alert on TCT - Range Break"
Choose Range Bullish Break or Range Bearish Break
Configure notifications (popup, email, webhook)
Click Create
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
Built with ❤️ by The Coding Trader
Chello Pro V1 ASSAF ALGOSChello pro is all you need for scalping day trading or swing it works perfectly in all markets
It contains a special moving average for trend direction
A signals depends on crossing the high or low of the sma or the ema
A sniper bands to insure the market momentum
A market structure add for more confluence
For LONG :
Price above the MA a buy signal active a bullish choch or bos signal active the price in green band
For SHORT :
Price below the MA a SELL signal active a bearish choch or bos signal active the price in red band
Note:
Keep the sma length at 9 for fast signals and 50 for slower one
change the sniper multiplier according to your strategy
Avoid choppy markets
Its better to use stop or trigger orders above or below entry candle
Add a good order blocks indicator for better results
Chello Pro هو كل ما تحتاجه للمضاربة السريعة، أو التداول اليومي، أو التداول المتأرجح، فهو يعمل بكفاءة عالية في جميع الأسواق.
يحتوي على متوسط متحرك خاص لتحديد اتجاه الترند. تعتمد الإشارات على تجاوز أعلى أو أدنى مستوى للمتوسط المتحرك البسيط (SMA) أو المتوسط المتحرك الأسي (EMA). أضف بنية السوق لمزيد من الترابط.
للشراء:
السعر أعلى من المتوسط المتحرك: إشارة شراء فعّالة، وإشارة تذبذب صعودي (BOS) فعّالة.
للبيع:
السعر أقل من المتوسط المتحرك: إشارة بيع فعّالة، وإشارة تذبذب هبوطي (BOS) فعّالة.
ملاحظة:
اضبط طول المتوسط المتحرك البسيط (SMA) على 9 للحصول على إشارات سريعة، و50 للحصول على إشارات أبطأ.
تجنب الأسواق المتقلبة.
أضف مؤشرًا جيدًا لكتل الأوامر لتحقيق نتائج أفضل
6PM NY Session Extremes + Open (Last 20 Days)From 18:00-18:00
High of Day Time
Low of Day Time
Points
BTC 1h-10m Volatility-Adaptive Convergence Indicator VACI (ZIOB)🔍 **BTC 10m-1h VACI Scalp/Swing (ZIOB)**
✅ **VACI = Volatility-Adaptive Convergence Indicator**
• Auto-adjusts signal thresholds to Bitcoin volatility (ATR-based)
• Detects trend reversals via 11m/45m line convergence
• Blocks counter-trend signals using 4h trend filter (prevents overtrading)
* Use it in combination with volume boxes *
🎯 **IDEAL FOR:**
• **Scalpers** on 10-minute charts (ultra-short signals with 40-bar cooldown)
• **Swing traders** on 1-hour charts (medium holds with trend confirmation)
⚠️ **CRITICAL NOTES:**
• **Exclusively optimized for Bitcoin** in 10m-1h timeframes
• **"ZIOB"** is a trademark/name of ZiobMichael – no affiliation with third parties
• **NOT financial advice** – always use stop-loss and risk management
🔖 **VERSION:** 7.3.1 | **AUTHOR:** @ZIOB
Volatility Term Structure IndexVolatility Term Structure Index
The Volatility Term Structure Index represents a systematic approach to measuring market stress and complacency through the analysis of volatility derivatives and their term structure relationships. This indicator draws conceptual inspiration from academic research on volatility forecasting and the informational content embedded in options markets.
The theoretical foundation rests on decades of research documenting the relationship between implied volatility patterns and subsequent market returns. Black (1976) first documented the inverse relationship between equity returns and volatility changes, establishing a fundamental principle in financial economics. Whaley (2000) demonstrated how volatility indices reflect aggregate market fear and uncertainty, with systematic patterns preceding major market dislocations. Engle (2004) provided foundational work on volatility modeling that underpins modern risk measurement approaches.
Unlike momentum strategies that follow price trends or contrarian approaches that bet against prevailing sentiment, this indicator operates on regime-identification principles. The relationship between short-term and long-term implied volatility reveals market expectations about risk evolution. When markets expect calm conditions to persist, the volatility term structure typically exhibits an upward slope. When stress emerges, this relationship inverts as near-term uncertainty exceeds longer-term expectations. This structural information reflects the aggregate positioning of sophisticated derivatives market participants.
Methodology and calculation framework
The methodology incorporates statistical normalization techniques that transform raw volatility data into comparable standardized scores. Each component factor undergoes robust z-score calculation using median absolute deviation to reduce sensitivity to outliers, a technique that proves particularly valuable during market stress when traditional standard deviation measures become unreliable. These normalized components aggregate using a weighting scheme informed by historical predictive power and correlation characteristics.
The indicator produces values on a scale from zero to one hundred, where higher readings indicate calm market conditions and lower readings signal elevated stress. Readings above seventy suggest complacent environments where equity markets typically perform well. The zone between forty and seventy represents mixed conditions without strong directional bias. Readings below forty indicate meaningful stress, with values below twenty signaling crisis-level conditions.
Internal quality mechanisms enhance signal reliability by requiring confirmation across multiple underlying factors before generating actionable signals. This reduces the probability of acting on isolated or unreliable readings and improves overall signal consistency.
Professional application and portfolio integration
Professional portfolio managers recognize the value of volatility regime indicators for risk management and tactical allocation. The fundamental insight is empirically robust: periods of low and stable volatility create supportive environments for equities, while regime transitions and elevated uncertainty warrant caution. Bollerslev, Tauchen and Zhou (2009) found that variance risk premium significantly predicts equity market returns, with volatility conditions leading price performance.
For institutional investors, the index serves as one input in risk management frameworks. Asset managers might use deteriorating readings to trigger portfolio review processes, stress testing exercises, or tactical allocation adjustments. The indicator proves valuable when it diverges from consensus narratives, as volatility markets often recognize fundamental shifts before they appear in prices. Systematic investors can incorporate the index as a conditioning variable for position sizing.
This integration finds support in the concept that derivatives markets often lead equity markets. Options market participants including market makers and institutional hedgers frequently possess informational advantages regarding expected market movements and tail risk.
Practical implementation for individual investors
When the index rises into the favorable zone above seventy with confirmed signal quality, volatility conditions support equity exposure. When the index falls below forty, reducing allocations, increasing cash reserves, or implementing protective strategies becomes appropriate. The zone between these thresholds suggests mixed conditions where other analytical frameworks should take precedence.
Individual investors can treat readings as alerts warranting portfolio examination. A favorable reading might prompt consideration of whether current equity exposure aligns with targets. A stress reading could trigger review of risk reduction measures. The indicator should inform rather than dictate decisions, serving as one perspective within a broader analytical framework.
Fundamental investors can use volatility readings to assess whether the risk environment supports their positioning. Technical analysts may find that volatility conditions help contextualize price patterns. Quantitative investors might incorporate volatility factors into multi-factor models.
Trading behavior and strategy characteristics
The index employs a regime-based methodology identifying periods when market conditions favor risk exposure versus caution. The trading logic accumulates positions when volatility conditions indicate calm environments and reduces exposure when conditions deteriorate. This approach positions with prevailing volatility market signals, recognizing that volatility regimes exhibit meaningful persistence.
The indicator may signal favorable conditions while price fluctuations continue. This reflects underlying volatility metrics remaining supportive despite surface-level movements. The strategy maintains exposure during favorable volatility conditions even when prices experience temporary weakness, and advocates caution during volatility deterioration even when prices appear stable. Success requires trust in the underlying signals and acceptance that price action and volatility conditions may temporarily diverge.
Suitability and implementation requirements
The index aligns with investors possessing specific characteristics. A medium to long term horizon proves essential as volatility regimes operate over weeks to months. A risk management orientation that prioritizes avoiding large drawdowns suits the defensive nature during stress periods. Comfort with systematic decision making helps maintain discipline when signals conflict with market consensus.
The indicator proves less suitable for day traders, investors requiring constant market exposure, and those unable to tolerate periods when the indicator conflicts with price trends. Institutional investors with strict benchmark tracking requirements may find the strategy incompatible with their mandates.
For appropriate investors, the index offers a systematic framework for monitoring market conditions. By providing an objective assessment of volatility regime health, it helps recognize environment shifts and consider positioning adjustments. The strategy demands patience and discipline but rewards those characteristics with potential for improved risk-adjusted returns through drawdown reduction during stress periods.
References
Ang, A. and Chen, J. (2002) Asymmetric correlations of equity portfolios. Journal of Financial Economics, 63(3).
Black, F. (1976) Studies of stock price volatility changes. Proceedings of the 1976 Meetings of the American Statistical Association, Business and Economics Statistics Section.
Bollerslev, T., Tauchen, G. and Zhou, H. (2009) Expected stock returns and variance risk premia. The Review of Financial Studies, 22(11).
Engle, R. (2004) Risk and volatility: Econometric models and financial practice. American Economic Review, 94(3).
Whaley, R.E. (2000) The investor fear gauge. The Journal of Portfolio Management, 26(3).
Tập lệnh trả phí
