Vince/Williams Extreme Volatility Vulnerability

Description: This indicator implements the "Period of Extreme Vulnerability" concept developed by Ralph Vince and Larry Williams. The theory posits that a healthy market must regularly see the number of New Lows "dry up" (drop to near zero). When the percentage of New Lows fails to drop below a minimal threshold (default 0.15%) for a prolonged period (default 65 days), it indicates that internal market structure is rotting even if prices are rising, leaving the market fragile and prone to sudden volatility shocks.

I have programmed this script to track that exact condition—the extended absence of a "low" New Lows reading. It applies a 50-day Moving Average filter to contextually categorize the signal:

Red Dot (Crash Warning): Triggers when the vulnerability period begins while the price is above the 50 SMA. This is the classic warning signal, indicating that an uptrend is unsupported by market internals and a sharp correction may be imminent.

Green Dot (Contrarian Buy): Triggers when the vulnerability period begins while the price is below the 50 SMA. The script identifies this as a potential capitulation or value point where the persistent internal weakness is likely already priced in.

Note: This indicator requires exchange-wide data (New Lows, Advancers, Decliners) to function. It is best used on daily timeframes.