Volatility Strength Indicator (Percentage-Based)

This indicator measures market volatility and directional strength using a percentage-based price movement model.

It detects moments when:

A single candle exceeds a user-defined percentage threshold (N%)

A series of consecutive candles in the same direction collectively exceeds the same threshold

When these conditions are met, the indicator highlights volatility expansion and liquidity impulses, signaling strong directional movement.

Key Characteristics

All calculations are percentage-based, making the indicator asset-agnostic

Detects single-candle volatility spikes

Identifies cumulative volatility from multiple candles

Signals only when volatility aligns with directional consistency

Designed to highlight impulsive market phases, not noise

Use Cases

Identifying high-volatility conditions

Confirming trend strength

Filtering out low-volatility, ranging markets

Supporting momentum and breakout strategies

Notes

Does not predict direction; it measures volatility and movement strength

All parameters are user-configurable

Suitable for all markets and timeframes