โขTradeChartist Volatizer (Volatility Visualizer) is an exceptionally well designed script that helps visualize Price Volatility and Momentum with the help of various Visual components including Volatizer Bands and Mean line, Support/Resistance levels, Trade Signals and much more. Volatizer's ability to filter trades based on Volatizer Bands, initial Support/Resistance breach, along with the use of External Filter makes it an extremely functional and a useful indicator in addition to its visually engaging design.
Volatizer Bands comprises of an Upper Band, a Lower Band and a Mean line, that form the important components of this script. These bands are based on consolidation of various factors including comparison of volatility and Higher Time Frame (HTF) Momentum with that of the chart time frame. This helps visualize relative Volatility of the chart's price action in relation to the bands and the mean line. The width and the acceleration of the bands depend upon two of the only user inputs required in this script. They are
Volatizer Length - This is the lookback length required to plot the strength of the price action. This length also determines the Volatizer Levels and Fills that help visualize Volatility and Momentum of the asset observed/traded. Higher the length, longer the trend and higher the Risk:Reward ratio
Sensitivity - Users can choose one of 3 Sensitivity options (Low, Optimal, High) to adjust the degree of sensitivity of the Bands' reaction to the price action. High Sensitivity Bands react quicker to the price action based on underlying logic.
Example : 1hr chart of BINANCE:ETHUSDT using 24/High on the left and 24/Low on the right.
Volatizer mean is a critical component of the Bands as it can determine the nature of the price action based on how the price tests the Volatizer Mean. When the price is extremely volatile or trending and when it is influenced by Bull or Bear momentum, the Mean line can be the magnet for Pull Backs or Throw Backs. Mean Touch Points can be enabled or disabled from the settings.
Example - 1hr chart of BINANCE:ETHUSDT clearly showing the use of the Mean line and Orange Mean Touch Points.
Example - 1hr chart of BINANCE:ETHUSDT with Volatizer Levels/Fills enabled on the left and disabled on the right.
Volatizer uses a clever logic that helps detect volatility exhaustion prices and plots $ signs to help the trader take profits or move stop loss levels to secure gains or to exit trade position. This option can be enabled or disabled by checking or unchecking Display Profit Taking Zones. These zones can also be important support/resistance zones based on the trend volatility and momentum.
Example - 1hr chart of BINANCE:BTCUSDT (Setting - 24/Low) showing $ signs to help traders. (Green $ for Bull Zones and Red $ for Bear Zones)
The script can also be used to plot Trade Signals automatically with or without the use of Trade Filters. When the price shows bullish or bearish momentum when the price crosses above or below the mean, Bull or Bear plot appears on the chart to signal potential trend change. These signals can be filtered using one, two or all three filters listed below.
Filter Initial S/R Level Breakouts - Plots Signals only when the initial Support/Resistance levels get breached.
Filter using Volatizer Bands - Plots Signals only when the Upper/Lower bands get breached.
External Filter - Plots Signals only if crossover/breakout criteria of External Filter (Oscillatory or Non-Oscillatory Signal) is satisfied.
Example Charts for Trade Signals/ Filters using 1hr chart of NASDAQ:AMD (Setting - 24/Optimal)1. Trade Signals without any filter2. Trade Signals using Initial S/R Level Breakout Filter only3. Trade Signals using Volatizer Bands Filter only4. Trade Signals using External Filter - MDO (144) with 0 Filter values along with other 2 built in filters
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Alerts can be created using Trading View's Alert Creation box by choosing one of the following Volatizer Conditions.
Long - Alerts when Bull signal is generated. Use Once Per Bar Close
Long Take Profit - Alerts when $ signs are plotted during Bull Zone. Use Once Per Bar
Short - Alerts when Bear signal is generated. Use Once Per Bar Close
Short Take Profit - Alerts when $ signs are plotted during Bear Zone. Use Once Per Bar
Test of Mean - Alerts when price tests the Volatizer Mean line. Use Once Per BarNote: The indicator doesn't repaint even though a potential repaint warning appears when creating alerts. This can be confirmed by doing bar replay with vertical lines at various lines and trend change zones to get confidence using the indicator. The vertical lines will stay in the same place on both current time and when running a bar replay.
Visual settings like Colour scheme, Colour Bars, Fill Transparency and Initial Support/Resistance Linewidth can be adjusted/changed from the settings under Volatizer Visuals section.
1. As mentioned in the manual above, higher the length, longer the trend and higher the Risk:Reward ratio.
2. Sensitivity affects the frequency of the signals in general. Low Sensitivity will generate less frequent signals and High Sensitivity will generate more frequent signals as the Sensitivity affects how quickly the Bands react to the price action.
3. As a rule of thumb, it is recommended to use relevant numbers that seem to work well as Volatizer Length. These can be Fibonacci numbers like 5, 8 , 13, 21, 34, 55, 89, 144 etc. These can also be chart timeframe multipliers that relate to Higher Time Frame (HTF). For example, using 24 on 1hr chart will help see Volatizer Bands based on Daily volatility and momentum, 72 on 15m chart for 4hr trend and so on.
There are several combinations of settings that can be tested on the asset traded based on timeframe and risk/reward expectations. The indicator can be used for trade entries with filter combinations or can be used as standalone Visualizer for trend confirmations, levels etc.
1. As mentioned in the manual above, higher the length, longer the trend and higher the Risk:Reward ratio.
2. Sensitivity affects the frequency of the signals in general. Low Sensitivity will generate less frequent signals and High Sensitivity will generate more frequent signals as the Sensitivity affects how quickly the Bands react to the price action.
3. As a rule of thumb, it is recommended to use relevant numbers that seem to work well as Volatizer Length. These can be Fibonacci numbers like 5, 8 , 13, 21, 34, 55, 89, 144 etc. These can also be chart timeframe multipliers that relate to Higher Time Frame (HTF). For example, using 24 on 1hr chart will help see Volatizer Bands based on Daily volatility and momentum, ๐ณ๐ฎ ๐ผ๐ป ๐ญ๐ฑ๐บ ๐ฐ๐ต๐ฎ๐ฟ๐ ๐ณ๐ผ๐ฟ ๐ฎ๐ฐ๐ต๐ฟ trend and so on.
Another fantastic script from @TradeChartist Nails trends with extra features to make it customisable. I use it daily along with Catalyst. Thank you for your continued development!
Volatizer is a fantastic script to use to see the trend trades at a different angles with great visual that you can not see on one script. Try this script and many of scripts from trade chartist. The best indicators!
TradeChartist
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@rocketcoin777, Thanks for your kind words. Best wishes.