Statistical Volatility [Pro+] (Joshuuu)

Dive into the dynamic world of statistical market analysis with Statistical Volatility, designed visualize volatility on all timeframes.

Statistical Volatility° [Pro+] (Joshuuu)

  1. Concept Introduction

  2. Indicator Features

  3. Settings and usage

Concept Introduction

Statistical Volatility is a custom-built indicator designed to help traders track the historical range volatility of each individual candle of a given Timeframe. Compared to traditional volatility metrics, or lookback-based volatility calculations, this indicator is focused on the idea of Time-based volatility.

Whether you are looking at intraday price movements or weekly trends, this tool provides a clear, visual representation of the average range each candle typically covers. By understanding these volatility patterns, traders can observe when markets are likely to expand or consolidate, based on Time.

To obtain this insightful metrics, all available candle range data is normalized; values are therefore represented as a percentage of the maximum historical Time volatility, indicating how each candle range compares relative to the highest value. This allows for an easy comparison of volatility across different Time periods.

Indicator Features

Detailed Volatility Tracking

The Statistical Volatility indicator enables traders to track the volatility of each candle throughout the day, week, or month, depending on the selected Timeframe. It helps to identify statistical Times of expansion or consolidation, beyond what current price data may showcase.

Timeframe Adaptability:

On lower timeframes such as the 5 Minute Timeframe, the indicator calculates and plots the statistical range for each 5 Minute candle of the day, respectively. On higher timeframes, such as 1 Hour Timeframe or above, the ranges are plotted for each candle of the week, respectively. This adaptability ensures the indicator is versatile enough for day traders, scalpers, and swing traders alike; maintaining a highly granular yet versatile statistical edge.

Flexible Display Options

Traders can choose between different visualization methods, in form of a Heatmap or a Barchart, to display the volatility calculations. The heatmap offers a simple visualization of the data, relying entirely on the color gradient to display volatility. On the other hand, the Barchart gives more flexibility to the analyst by providing a more detailed visual analysis, with the ability of overlaying and comparing the current Time-based volatility.

How Traders Can Use Statistical Volatility

Data-Based Optimization

By understanding when the market typically experiences its largest or smallest moves, traders can better frame the current narrative. Especially when backtesting, this information can help optimize analysts' entry mechanisms thanks to the introduction of a Time-based statistical component.

Asset-Specific Insights

Currencies like Forex pairs (i.e. EURUSD, AUDUSD ) or other Asset Classes tied to a particular geographical location (i.e. NQ! in the United States, DAX in Germany), experience volatility spikes during the operational hours of major banks. Each asset has its own “active” Time when liquidity and volatility are higher, tied to when their corresponding markets are open. This makes Statistical Volatility particularly useful for traders who focus on multiple assets across different time zones.

Usage Guidance

  1. Add Statistical Volatility [Pro+] (Joshuuu) to your TradingView chart.

  2. Customize your preferred volatility calculation type, gradient colors, and plot styles.

  3. Use the volatility graphic to monitor current and upcoming shifts in volatility.

  4. Incorporate Statistical Volatility [Pro+] (Joshuuu) into your existing statistical strategies to fine-tune your interpretation of market behavior.

Indicator Settings

Style: Adjust the color of the gradient, with this tool analysts can customize the gradient to their preferred color scheme.

Calculation:

Calculation Type: Choose whether you want the statistical volatility calculated by Median or Mean

Visualization: Visualize the statistical volatility tool with a barchart or heatmap.

Current Volatility: Display a line that visualizes the current volatility. (Enable barchart for this setting)

Timezone: Adjust the timezone to America/NewYork, Europe/Berlin, Japan or GMT

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