Dynamic Volatility Channel (DVC) - Smooth

[ How it Works - The Core Logic ]

The indicator's adaptability comes from a unique blend of well-known concepts:

The Adaptive Engine (ADX): The indicator uses the Average Directional Index (ADX) in the background to analyze the strength of the trend. This acts as the "brain", telling the channel whether the market is trending strongly or moving sideways.

Hybrid Volatility: This is the core of the indicator. The width of the channel is determined by a weighted mix of two volatility measures:

In trending markets (high ADX), the channel gives more weight to the Average True Range (ATR).

In ranging markets (low ADX), the channel gives more weight to Standard Deviation.

Smooth Centerline (HMA): The channel is centered around a Hull Moving Average (HMA), which is known for its smoothness and reduced lag compared to other moving averages.

Advanced Smoothing Layers: This version includes dedicated smoothing for both the volatility components (ATR and StDev) and the logic that switches between regimes. This ensures the channel expands, contracts, and adapts in a very fluid manner, eliminating sudden jumps and reducing market noise.

[ How to Use - Strategies ]

Mean Reversion: In ranging markets (indicated by a flatter channel), the outer bands can act as dynamic support and resistance levels. Look for opportunities to sell near the upper band and buy near the lower band, always waiting for price action confirmation like reversal candles.

Trend Following: In strong trends (indicated by a steeply sloped channel), the centerline (HMA) often serves as a dynamic level of support (in an uptrend) or resistance (in a downtrend). Pullbacks to the centerline can present opportunities to join the trend. A "band ride," where price action consistently pushes against the upper or lower band, signals a very strong trend.

Volatility Analysis: A "squeeze," where the bands come very close together, indicates low volatility and can foreshadow a significant price breakout. A sudden expansion of the bands signals an increase in volatility and the potential start of a new, powerful move.

[ Settings & Customization ]

All core parameters are fully customizable to suit your trading style and preferred assets:

You can adjust the lengths for the HMA, ATR, StDev, and the ADX filter.

You can change the multipliers for the ATR and Standard Deviation components.

Crucially, you can control the Volatility Smoothing Length and Logic Smoothing Length to find the perfect balance between responsiveness and smoothness.

Disclaimer: This indicator is provided for educational and analytical purposes only. It is not financial advice, and past performance is not indicative of future results. Always conduct your own research and backtesting before risking capital in a live market.