Volatility Tracker

2022年12月9日

hi there, fellows.

this is a very simple and quite straightforward indicator.
so far the simplest we've built.

on what it does
in regard to current chart and timeframe it plots
a. Open - Close as a percentage of the Open (we regard open as more relevant than close, for as you can use latest estimates in current candle) in daily change coloring (so one may have an idea if there is a trend or sideways move unfolding)
b. High - Low as a percentage of the Open, so one may compare extreme moves with final ones in the period
c. Volume as a percentage distance from its WMA200 (always this one, a way better reference for normalcy). (e. g. a positive value x means Volume is x% above its WMA200)

on what it means
to the best of our imperfect and incomplete understanding, we believe that low volatility periods lead to high volatility periods, so one might want to enter the market in low volatility periods to enjoy wild rides afterwards. such a trade of course would be, for the sake of making sense, a long volatility one.
the timing for entrance could be once that the volatility waves fades to chart minimums.

we're open to critics, suggestions and comments.
best regards.

2022年12月9日

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chart update.

2023年1月3日

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summary of changes
in this new version the bias of the volatility is expressed.

description of the changes
in previous version the columns were plotted centered around zero.
in current version they are centered around the open.
as a consequence, one can easily verify
- how the highs and the lows were relatively to the open and
- how near the close was to either of them

importance of the change
perhaps a combination of different timeframes of this indicator can help to further clarify whether or not a directional move is being established.

best regards.