OPEN-SOURCE SCRIPT
Volatility Tsunami Regime
Volatility Tsunami Regime
This indicator identifies periods of extreme volatility compression to help anticipate upcoming market expansions. It detects when volatility is unusually quiet, which historically precedes violent price moves.
The script pulls data from the CBOE VIX and VVIX indices regardless of the chart you are viewing. It calculates the standard deviation of both indices over a user-defined lookback period (default is 20). If the standard deviation drops below specific thresholds, the script flags the market regime as compressed.
The background color changes based on the severity of the compression. A red background signals a Double Compression, meaning both the VIX and VVIX are below their volatility thresholds. An orange background signals a Single Compression, meaning only one of the two indices has dropped below its threshold.
Use this tool to spot the "calm before the storm." When the background is red, volatility is statistically suppressed, making it a prime time to look for breakouts or buy options while premiums are cheap. Conversely, it serves as a warning to tighten stops if you are short volatility.
This indicator identifies periods of extreme volatility compression to help anticipate upcoming market expansions. It detects when volatility is unusually quiet, which historically precedes violent price moves.
The script pulls data from the CBOE VIX and VVIX indices regardless of the chart you are viewing. It calculates the standard deviation of both indices over a user-defined lookback period (default is 20). If the standard deviation drops below specific thresholds, the script flags the market regime as compressed.
The background color changes based on the severity of the compression. A red background signals a Double Compression, meaning both the VIX and VVIX are below their volatility thresholds. An orange background signals a Single Compression, meaning only one of the two indices has dropped below its threshold.
Use this tool to spot the "calm before the storm." When the background is red, volatility is statistically suppressed, making it a prime time to look for breakouts or buy options while premiums are cheap. Conversely, it serves as a warning to tighten stops if you are short volatility.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.