ZynIQ Volatility Master Pro v2 - (Pro Plus Pack)Overview
ZynIQ Volatility Master Pro v2 analyses expansion and contraction in price behaviour using adaptive volatility logic. It highlights periods of compression, breakout potential and increased directional movement, helping traders understand when the market is shifting between quiet and active phases.
Key Features
• Multi-layer volatility modelling
• Adaptive compression and expansion detection
• Optional trend-aware volatility colouring
• Configurable sensitivity for different assets and timeframes
• Clean visual presentation designed for intraday and swing analysis
• Complements breakout, trend, structure and volume indicators
Use Cases
• Identifying contraction phases before expansion
• Filtering trades during low-volatility conditions
• Spotting volatility increases that accompany breakouts
• Combining volatility context with your other tools for confluence
Notes
This tool provides volatility context and regime awareness. It is not a trading system on its own. Use it with your preferred confirmation and risk management.
Compression
Volume–Phase Analyzer ProVolume–Phase Analyzer Pro – Trend & Institutional Volume Phases
This indicator analyzes how volume behaves relative to price movement to detect whether the market is in Accumulation, Markup, Distribution, or Markdown — the same phases institutions track in professional trading.
Unlike regular volume/MA mashups, this tool combines:
• Institutional volume classification (HighVol Up/Down, LowVol, Confused Vol)
• Price–volume efficiency and wick dominance
• Multi-Timeframe directional filters
• Volatility compression signals using Bollinger Width
• Volume mapped directly into the price chart as candles
• Smart signal engine with cooldown (prevents repeated signal spam)
This helps reveal w hen Smart Money is accumulating, pushing trends, unloading positions, or flushing liquidity.
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How It Works
1️⃣ Volume Strength vs Average Volume
Identifies whether a move is backed by genuine buying/selling power.
2️⃣ Wick & Body Analysis
Confirms whether volume produced meaningful directional pressure — not just noise.
3️⃣ Trend Alignment
Fast EMA vs Slow EMA ensures signals align with active trend.
4️⃣ Higher-Timeframe Confirmation
Confirms if current movement agrees with a larger directional bias.
5️⃣ Compression Detection
When price volatility contracts while high-volume bars appear → phase shift often ahead.
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Signals
BUY → Confirmed bullish demand with trend backing
SELL → Confirmed bearish supply taking control
TRAP → Likely stop-hunt or absorption — often before reversal
Signals only appear when multiple institutional conditions align.
A cooldown prevents repetitive signals like BUY-BUY-BUY.
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Background shading helps visually locate these phases.
Markup phase:
• Meaning: Buyers are in control and the market is trending up
• Background color: Light green
Markdown phase:
• Meaning: Sellers are in control and the market is trending down
• Background color: Light red
Accumulation phase:
• Meaning: Smart Money quietly buying near the bottom before an uptrend
• Background color: Teal (blue-green)
Distribution phase:
• Meaning: Smart Money quietly selling near the top before a downtrend
• Background color: Light orange/yellow
Consolidation phase:
• Meaning: Sideways movement with low conviction
• Background color: Very light grey
Transition phase:
• Meaning: Market has not picked a direction yet
• Background color: No shading (clear background)
⸻
Quick Usage Notes
• Best trades are Buy signals during Markup and Sell signals during Markdown
• Accumulation and Distribution often come before reversals
• Consolidation is a low-quality trading zone
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How to Trade It
• Take BUY signals during Markup
• Take SELL signals during Markdown
• Expect reversals near Trap signals, especially when phase is changing
• Avoid over-trading Consolidation zones
• Volume candles below price reveal when momentum is increasing or fading
Best applied on 5m–1H for intraday and swing confirmation.
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Why This Indicator Is Unique
• It uses p rice-volume efficiency , not standard lagging signals
• It detects S mart Money intent , not retail reactions
• It avoids spam signals using an internal cooldown logic
• It gives context, not just entries — via live market-phase analysis
This makes it a multi-purpose tool for trend trading, breakout trading, and reversal anticipation.
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Alerts Included
• Buy/Sell/Trap Signals
• Phase Change Alerts
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This is a free tool and meant for educational use only.
Always use proper risk management.
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Volumetric Spectrogram [by Oberlunar]Volumetric Spectrogram
A two-pole, price-relative volume profiler that turns regional buy/sell pressure into clean oscillators and actionable regimes in a multi-broker setup.
What it measures
The indicator divides the recent price span into bins and accumulates buy vs. sell volume in each bin, then summarises two regions with respect to the current price:
Upper (↑) — volume that traded above the current price (overhead supply/demand).
Lower (↓) — volume that traded below the current price (underfoot bid/pressure).
Per region, it computes BUY% and SELL%, then forms two normalised oscillators in :
Upper Osc = Upper(BUY%) − Upper(SELL%) → positive when overhead offers are being lifted (breakout acceptance), negative when overhead sell pressure dominates (resistance).
Lower Osc = Lower(BUY%) − Lower(SELL%) → positive when sub-price bids strengthen (support/absorption), negative when selling persists beneath price (weak underbelly).
Both oscillators are optionally smoothed with EMA and can be filled to zero or between curves for quick polarity/strength reading.
Candle-fill modes across brokers
The indicator supports multiple candle-fill policies tied to cross-broker volumetric agreement (e.g., spectral/range-only fills when ≥N brokers align above 70% bullish or below 20% bearish Buy%). This makes regime and pressure shifts visually explicit while filtering out unconfirmed noise.
How it works (core algorithm)
Over a lookback window, find the high/low and split the range into N bins .
For each historical bar, approximate “buy” vs “sell” volume using candle direction and the close relative to each bin’s midprice; update left/right profiles per bin.
Aggregate bins above the current price into the Upper region and bins below into the Lower region; compute regional totals and percentages.
Convert to signed oscillators and smooth (EMA length per input).
Scenario engine (table, every bar)
A compact table reports, for Upper/Lower: BUY Vol, SELL Vol, BUY%, SELL%, and Net%. A classifier labels 8 regimes based on oscillator sign and recent expansion/decay: Sync Long/Short (Expanding/Decaying), Opposite Signs (Widening/Converging), and Tilts (Upper/Lower). This helps distinguish trend continuation, fade risk, compression before break, and asymmetric pressure (e.g., “Tilt Lower — bid/support strengthening”).
# Example strategies and annotated cases:
There are different operational strategies:
1) Bottle-neck Strategy with multi-broker confirmation
When both oscillators are red and they compress toward the zero line (a bottle-neck [/i>), if the squeeze does not flip into the opposite trend but instead resolves in the same direction, you have a continuation setup that can be exploited:
• Pattern: both oscillators red → short, visible contraction (narrow, low-variance cluster) → break of the cluster lows → background shadow bars align bearish (multi-broker agreement).
Example:
This sequence often supports a 1.5–2.5 R/R trade, as in:
Bullish mirror
If both oscillators are teal and compress, then expand upward with multi-broker agreement, the scenario becomes bullish after several bars; the position can be profitable with a reasonable risk setup:
Example:
Follow-through:
Here are the additional, English “playbook” examples you can append to the previous description.
2) Dual-confirmation on volume spikes + multi-broker checks
When pronounced volumetric spikes appear (up or down), trend often reverses sharply. In the figure, the circles highlight the spikes; once the spike subsides (reversion toward baseline), the oscillator turns bullish. The double confirmation of two consecutive minimum spikes acts as support for an ensuing up-move, with fill colors confirming direction.
Chart:
Even with a single spike confirmation, the reversion from an extreme often provides actionable long setups.
3) Volume-pressure + regime-change (multi-broker)
A prospective long configuration emerges when bullish volumetric pressure dominates and bearish pressure fades, especially if this occurs after a lateral phase, followed by a bullish volume spike and multi-broker confirmation .
Chart:
Shadow bars subsequently confirm continuation in a bullish regime; however, a possible regime change is flagged by the scenario classifier and by a color flip in the volumetric borders ( “Possible regime change, but without multi-broker confirmation.” is an appropriate label when applicable).
Chart:
After a verified mean-reversion, price transitions into a bearish configuration: both oscillators turn red. One can wait for a pullback and seek short entries.
Chart:
As shown here, the regime change is anticipated well in advance by the oscillators and multi-broker pressure:
Chart:
4) Contrastive regime-shift with multi-broker validation
In a contrastive trading phase, the lower volumetric oscillator flips color first—buyers start attacking. The first set of background shadow bars does not agree with the regime flip; the second set does. This sequence (oscillator flip → later multi-broker agreement) is a robust early sign of a potential long setup.
Chart:
At the multi-broker level, all shadow bars turn fully green and the setup becomes unambiguously bullish.
Chart:
Note that bearish pressure can still be non-trivial on the volumetric scale—even if it does not reach prior extreme minima—so risk controls should reflect the residual supply.
Delta-bar coloring (optional)
Bars (or candle overlays) can be tinted by a multi-venue weighted bias:
Choose venues (OKX, Coinbase, Bybit, Binance, BlackBull…).
Weight by Equal / Last Volume / SMA Volume.
Apply deadband to suppress flicker around neutrality and a gamma curve to modulate opacity with |bias|.
This layer is independent of the spectrogram core but provides immediate market-wide flow context, consistent with the table and fills.
Inputs (essentials)
Calculation Period and Bins — resolution and depth of the price-range histogram.
EMA length — smoothing per oscillator (optional)
Fill options — to zero / between curves, gradual opacity by |osc|, min/max alpha.
Delta Bar — enable tinting, gamma, neutral band; venue list and weighting mode.
Reading guide
Upper > 0 & expanding : overhead supply is being lifted → breakout acceptance risk rises.
Lower > 0 & expanding : sub-price bids strengthen → pullbacks more likely to absorb.
Opposite signs widening : tug-of-war; avoid late entries.
Converging : compression → prepare for break.
Use the table’s regime label to keep the narrative honest bar-by-bar.
Notes & limits
Buy/Sell attribution uses candle direction and range partitioning (no L2/tick tape).
Venue aggregation relies on per-exchange volume and your chosen weighting; symbols must align (e.g., BTCUSDT pairs).
Oscillators are relative to the current price (regional) by design; they complement, not replace, classical volume profile.
— Oberlunar 👁 ★
Advanced Candle Compression BollingerColors candles based on Bollinger Band width relative to its average — showing when volatility tightens.
Orange = medium compression
Red = strong compression
Candle color appears only after several consecutive bars meet the condition.
You can adjust thresholds, colors, bar count, and the Bollinger source (default: (High+Low+Close)/3).
Useful to spot low-volatility zones that often precede breakouts.
Bollinger Keltner Squeeze Indicator (BBKC)Bollinger Keltner Squeeze Indicator (BBKC)This single-pane indicator combines the power of Bollinger Bands (BB) and Keltner Channels (KC) to accurately identify periods of low volatility compression—the famous Squeeze—which often precedes large, directional moves.Designed for traders utilizing Accumulation, Manipulation, Distribution (AMD) strategies, this tool makes spotting the 'Accumulation' phase simple and visually clear, perfect for high BTC Beta equities or futures markets like MES and MNQ.Key Features:Clear Squeeze Visualization:The background of the main chart is shaded Orange when the Squeeze is active (BB is inside KC). This immediately highlights periods of extreme compression.A simple Red/Green Dot below the chart confirms the Squeeze state (Red = Squeeze ON, Green = Squeeze OFF).Momentum Histogram:A built-in momentum oscillator smooths price action and guides the anticipated direction of the breakout.Teal/Orange Bars: Indicate momentum direction while the Squeeze is active (building pressure).Bright Green/Red Bars: Indicate momentum direction after the Squeeze has broken (expansion/breakout).How to Find Maximum Volatility Compression (The "Tightest" Squeeze)To align this indicator with a strategy focused on catching only the most extreme volatility compression—the key to those explosive moves—traders should adjust the Keltner Channel Multiplier setting.Setting Name: KC Multiplier (ATR)Default Value: 1.5Recommended Adjustment: To filter for only the absolute tightest squeezes (where price is least volatile), decrease this multiplier value, typically down to 1.25 or even 1.0.By lowering the KC Multiplier (ATR), you narrow the Keltner Channel boundaries. This requires the Bollinger Bands to compress even further to fit inside, ensuring the indicator only signals the Squeeze state during moments of truly minimal volatility, setting you up for maximum opportunity.
Volumetric Compressed MAVCMA (Volumetric Compressed Moving Average) uses the compressor and weighted standard deviation functions originally translated to pinescript by @gorx1 to plot moving averages in order to use for entry confirmation.
🔹 Concepts and Idea:
When we do music we always use different kinds of filters (low-pass, high pass, etc) for equalization and filtering itself. That stuff we use in finance as well. What we also always use in music are compressors, there dynamic processors that automatically adjust volume so it will be more consistent. Almost all the cool music you hear is compressed (both individual instruments (especially vocals) and the whole track afterwards), otherwise stuff will be too quite and too weak to flex on it, and also DJing it would be a nightmare.
🔹 Model:
I don't wanna explain it all in statistical / DSP way for once.
First of all, I think the population of volumes is log-normally distributed, so let's take logs of volumes, now we have a ~ normally distributed data. We take linearly weighted mean, add and subtract linearly weighted standard deviation from it, these would be our thresholds, the borders between different kinds of volumes explained before.
The upper threshold is for downward compression, that will not let volume pass it higher.
The lower threshold is for upward compression, all the volumes lower than this threshold will be brought up to the threshold's level.
Then we apply multipliers to the thresholds in order to adjust em and find the sweet spots. We do it the same way as in sound engineering when we don't aim for overcompression, we adjust the thresholds until they start to touch the signal and all good.
Afterwards, we delete all the number 1 and number 3 volume, leaving us exclusively with the clear main component, ready to be processed further.
We return the volumes to dem real scale.
For more info on Volume Compression it's highly advised to check @gorx1's initial script Volume Compressor
🔹 Settings:
MA Type: Moving average type to be used for comparison after calculating the compressed version of volume. This creates the second line after the compression line, so we can consider crossovers for confirmation entries.
Upward threshold: Upward threshold where the compression of volume is calculated. Increasing usually causes smoother lines.
Downward threshold: Downward threshold where the compression of volume is calculated. Decreasing usually causes smoother lines.
Compression Lookback: The Main lookback window of a volume that is used for compression. Increasing this would provide smoother lines but might cause delayed signals. Decreasing means more signals, but might cause whiplash and distorted signals.
Comparative Lookback: This is our lookback to be used with our ma type selection. There is no static better or worse lookback value for this indicator. It should be adjusted based on the pair.
🔹 Where to use:
This indicator should be used as another confirmation tool for your entry signals in your existing strategy/market following combination. Green dots (crossovers) mean bullish movement is expected, and red dots (crossbounders) mean bearish movement is expected. Automated crossover alerts are available. A reminder is that this kind of indicator should not be used on its own for trading, but rather should be used as a confirmation along with your trend detection and main entry indicators to provide additional confidence.
If you want to know under the hood, read the How it works section below.
🔹 How it works:
//This is our main compression calculation, which is used for the first line.
Compressed_out = compressor(volume, len_window, up_thresh, down_thresh)
//This is the secondary ratio calculation that we use for the second line.
Comp_ma = ma(ma_type, close * compressed_out, len_ml) / ma(ma_type, compressed_out, len_ml)
Vwma = ma(ma_type, close, len_window)
We calculate the ratio of the compressed volume and plot it against the base MA. Base MA's length is determined by the Compression Lookback input compared to the Comperative Lookback that is used for the compressed version. This provides us with another possible confirmation indicator that can be used to take advantage of volume ranges.
ATR Squeeze BackgroundThis simple but powerful indicator shades the background of your chart whenever volatility contracts, based on a custom comparison of fast and slow ATR (Average True Range) periods.
By visualizing low-volatility zones, you can:
* Identify moments of compression that may precede explosive price moves
* Stay out of choppy, low-momentum periods
* Adapt this as a component in a broader volatility or breakout strategy
🔧 How It Works
* A Fast ATR (default: 7 periods) and a Slow ATR (default: 40 periods) are calculated
* When the Fast ATR is lower than the Slow ATR, the background is shaded in blue
* This shading signals a contraction in volatility — a condition often seen before breakouts or strong directional moves
⚡️ Why This Matters
Many experienced traders pay close attention to volatility cycles. This background indicator helps visualize those cycles at a glance. It's minimal, non-intrusive, and easy to combine with your existing tools.
🙏 Credits
This script borrows core logic from the excellent “Relative Volume at Time” script by TradingView. Credit is given with appreciation.
⚠️ Disclaimer
This script is for educational purposes only.
It does not constitute financial advice, and past performance is not indicative of future results. Always do your own research and test strategies before making trading decisions.
Volatility Squeeze – Blue Zone (classic) Volatility Squeeze – Blue Zone
Highlights periods when volatility contracts by showing a blue band between the Bollinger Bands (BB) whenever they fall inside the Keltner Channel (KC).
Blue zone = squeeze: BB upper & lower are inside KC – market coiling.
Automatic breakout alert: optional alert fires on the first bar after the squeeze releases.
Fully adjustable: BB/KC length, BB σ, KC ATR multiplier, zone colour & opacity, border on/off.
Clean overlay: zone hugs price bar-by-bar and disappears only when the squeeze ends, so past squeezes remain visible for context.
Use it to spot low-volatility setups, then watch for momentum or volume confirmations when the squeeze breaks.
Volatility Price FlowCapitalize on market volatility with our new volatility price flow indicator. We have designed this indicator to process historical price movements and indicate when price may have reached exhaustion in the context of current volatility.
This is achieved by taking the price deviation from a user defined moving average, and applying a weighting to the deviations from the candle body and candle wick on both buy side and sell side, over a user defined period. The period of the base moving average, type of moving average and the period of the historical price deviations can all be modified. This creates a typical 'band' style indicator, though with a unique characteristic that the buy and sell side vary independently as well as the band expansion being based on weighted variables tied to the actual price changes, rather than just a standard deviation the moves uniformly.
Additionally, these bands can be merged with an anchored vwap - we do this so that the deviations of price from the moving average can include a more volume based approach to identifying potential pivots.
The end result is an indicator that reflects the current market price movements, identifies and capitalizes on impulsive or beginning moves to indicate potential tops / bottoms / reversals.
The signals are simple - anytime price closes within a band, having been outside the band, a signal is displayed. As a basic guide to setting the indicator up for the first time, we suggest reducing all of the multipliers to a value less than 1. Then gradually increase each one, until the signals reduce in quantity and improve in quality, starting with the price deviation multiplier, then the volatility multiplier and finally the expansion multiplier.
Last of all, alerts can be created based on the current chart timeframe and indicator settings, simply by adding an alert that uses the built in buy or sell signal.
Note: We cannot guarantee the accuracy of the signals provided, since the user creates the signals by modifying the settings, and as such we can take no responsibility for any trading losses incurred using the indicator and highly encourage all users to manage their risk and only risk what you can afford to lose.
MTF Fusion - High Volume Expansion Channel [TradingIndicators]Exceptionally high volume and rapid price expansion are key markers of powerful moves, especially when they occur during a breakout or breakdown. The High Volume Expansion Channel (HVEC) uses our multi-timeframe fusion and price compression/expansion algorithms to look for high volume and rapid expansion from multiple higher timeframes at once. It uses this info to determine a high volume and expansion 'grade', and then encodes this result into a colored channel. This channel coloring varies in intensity based on how exceptionally high volume is and how rapidly price is expanding in either direction.
What is MTF Fusion?
Multi-Timeframe (MTF) Fusion is the process of combining calculations from multiple timeframes higher than the chart's into one 'fused' value or indicator. It is based on the idea that integrating data from higher timeframes can help us to better identify short-term trading opportunities within the context of long-term market trends.
How does it work?
Let's use the context of this indicator, which calculates a 'high volume and expansion grade' (let's call it HVEG), as an example to explain how MTF Fusion works and how you can perform it yourself.
Step 1: Selecting Higher Timeframes
The first step is to determine the appropriate higher timeframes to use for the fusion calculation. These timeframes should typically be chosen based on their ability to provide meaningful data and action which actively affect the price action of the smaller timeframe you're focused on. For example, if you are trading the 5 minute chart, you might select the 15 minute, 30 minute, and hourly timeframe as the higher timeframes you want to fuse in order to give you a more holistic view of the trends and action affecting you on the 5 minute. In this indicator, four higher timeframes are automatically selected depending on the timeframe of the chart it is applied to.
Step 2: Gathering Data and Calculations
Once the higher timeframes are identified, the next step is to calculate the data from these higher timeframes that will be used to calculate your fused values. In this indicator, for example, the HVEG value is calculated by determining the HVEG for all four higher timeframes.
Step 3: Fusing the Values From Higher Timeframes
The next step is to actually combine the values from these higher timeframes to obtain your 'fused' indicator values. The simplest approach to this is to simply average them. If you have calculated the HVEG value from three higher timeframes, you can, for example, calculate your 'multi-timeframe fused HVEG' as (HigherTF_HVEG_1 + HigherTF_HVEG_2 + HigherTF_HVEG_3) / 3.0.
Step 4: Visualization and Interpretation
Once the calculations are complete, the resulting fused indicator values are plotted on the chart. These values reflect the fusion of data from the multiple higher timeframes, giving a broader perspective on the market's behavior and potentially valuable insights without the need to manually consider values from each higher timeframe yourself.
What makes this script unique? Why is it closed source?
While the process described above is fairly unique and sounds simple, the truly important key lies in determining which higher timeframes to fuse together, and how to weight their values when calculating the fused end result in such a way that best leverages their relationship for useful TA.
This MTF Fusion indicator employs a smart, adaptive algorithm which automatically selects appropriate higher timeframes to use in fusion calculations depending on the timeframe of the chart it is applied to. It also uses a dynamic algorithm to adjust and weight the high volume and price expansion grade calculations depending on each higher timeframe's relationship to the chart timeframe. These algorithms are based on extensive testing and are the reason behind this script's closed source status.
Included Features
MTF Fusion high volume and expansion coloring
MTF Fusion ATR-based channel for visual effect
Channel width customization and explanatory labels
Pre-built color stylings
Options
Show Channel Lines: Show/hide the upper and lower lines of the channel
Fill Channel: Fill the channel with coloring depicting the current degree of high volume and rapid price expansion
Channel Width Multiplier: Sets the width of the ATR-based channel
Explanatory Labels: Show/hide explanatory labels describing the visuals
Lookback: Select how you want the degree of high volume expansion to be calculated (longer = long-term high volume and expansion, shorter = short-term high volume and expansion)
Pre-Built Color Styles: Use a pre-built color styling (uncheck to use your own colors)
Manual Color Styles: When pre-built color styles are disabled, use these color inputs to define your own
Volatility patterns / quantifytools- Overview
Volatility patterns detect various forms of indecisive price action, on a larger scale as a compressed range and on a smaller scale as indecision candles. Indecisive and volatility suppressing price action can be thought of as a spring being pressed down. The more suppression, the more tension is built and eventually released as a spike or series of spikes in volatility. Each volatility pattern is assigned an influence period, during which average and peak relative volatility is recorded and stored to volatility metrics.
- Patterns
The following scenarios are qualified as indecision candles: inside candles, indecision engulfing candles and volatility shifts.
By default, each indecision candle is considered a valid pattern only when another indecision candle has taken place within 3 periods, e.g. prior inside candle + indecision engulfing candle = valid volatility pattern. This measurement is taken to filter noise by looking for multiple hints of pending volatility, rather than just one. Level of tolerated noise can be changed via input menu by using sensitivity setting, by default set to 2.
Sensitivity at 1: Any single indecision candle is considered a valid pattern
Sensitivity at 2: 2 indecision candles within 3 bars is considered a valid pattern
Sensitivity at 3: 2 indecision candles within 2 bars (consecutive) is considered a valid pattern
The following scenarios are qualified as range patterns: series of lower highs/higher lows and series of low volatility pivots.
A pivot is defined by highest/lowest point in price, by default within 2 periods back and 2 periods forward. When 4 pivots with qualities mentioned above are found, a box indicating compressed range will appear. Both required pivots and pivot definition can be adjusted via input menu.
- Influence time and metrics
By default, influence time for each volatility pattern is set to 6 candles, a period for which spike(s) in volatility is expected. For each influence period, average relative volatility (volatility relative to volatility SMA 20) and peak relative volatility is recorded and stored to volatility metrics. All metrics used in calculations are visible in "Data Window "tab. Average and peak volatility during influence period will vary depending on chart, timeframe and chosen settings. Tweaking the settings might result in an improvement and is worth experimenting with.
- Visuals
By default, indecision candles are visualized as yellow lines and range patterns as orange boxes. Influence time periods are respectively visualized as colored candle borders, applied as long as influence time period is active. All colors are fully customizable via input menu.
- Practical guide
Volatility patterns depict moments of equal strength from both bulls and bears. While this equilibrium is in place, price is stagnant and compresses until either side initiates volatility, releasing the built up tension. On top of hedging and playing the volatility using volatility based instruments, some other methods can be applied to take advantage of the somewhat tricky areas of indecision.
Example #1: Trading volatility
Volatility is not a bad thing from a trading perspective, but can actually be fertile ground for executing trade setups. Trading volatility influence periods from higher timeframes on lower timeframes gives greater resolution to work with and opportunities to take advantage of the wild swings created.
Example #2: Finding bias for patterns
Points of confluence where it anyway makes sense to favor one side over the other can be used for establishing bias for indecisive price action as well. At face value, it makes sense to expect bearish reactions at range highs and bullish reactions at range low, for which volatility patterns can provide a catalyst.
Example #3: Betting on initiation direction
Betting on direction of the first volatile move can easily go against you, but if risk/reward is able to compensate for the poor win rate, it's a valid idea to consider and explore.
LNL Fractal EnergyMarkets knows only two movements. Expansion and Consolidation. The price is either moving or it is consolidating. Fractal Energy will show you which move is about to happen. The funny thing is.. Fractal Energy will NOT tell you the direction of the potential move nor the time when the move will happen. It only shows whether the energy is accumulating or exhausting and which one of these moves are about to happen.
Fractal Energy Zones:
1. Gray = Neutral Energy, price will spend most of the time between the 0.60 and 0.30 ranges, if the FE is hanging around midline chop can be expected.
2. Pink = Energy Building (low compression), pink can produce solid moves but can turn in to a red or dark red which are way more powerful.
3. Red = Energy Building (yet to be released), once the FE colors red there is a high probability for a bigger than expected move.
4. Dark Red = Energy Building (high compression), dark red is rare and can be seen usually around earnings reports (explosive move can be expected).
5. Yellow = Energy Released = Exhaustion, everything ends at some point, yellow color represents the exhaustion of the move (the car ran out of gas).
6. Orange = Extreme Exhaustion, high probability for a sideways action or a reversal.
Tips & Tricks:
1. Importance of the Midline:
- Midline can be used as a target for the compressions. Once the FE reach the midpoint, the move is usually considered to be over.
2. Huge Gaps on earnings DO NOT COUNT:
- If the price heavily gaps up or gaps down, FE usually drops too steep with the gap thus signals after such moves can be ignored.
3. Fractal Energy Length & Time Frames:
- For the daily & weekly time frame length of 13 works nicely. But for the lower TF length 13 starts to lag behind the price a little. I would suggest using Length 15 for 30min to 4 hour and Length 17 - 20 for below 30min time frames.
4. Exhaustions:
- Exhaustions can be played too. Once the FE drops below 0.30 the price usually stays within the weekly expected move (great for iron condors), or non directional option strategies.. yellow/orange = price either reverse or stays at same levels for a few candles..
5. Combination of direction based studies with the magnitude based studies:
- Use the FE as a confirmation of your analysis from other (direction-based) trend or momentum indicators. Once you analyze your direction you can use Fractal Energy (magnitute-based) indicator to analyse whether there is a chance for a big move or not.
Hope it helps.
Volume CompressorTurns volume into a more informative representation, ready to be further analyzed
...
Rationale
Volume
Back in the "before the quant" days I was a big fan of market & volume profile. Thing is J. Steidlmayer had lotta different ideas & works aside of profiling, it's just most of them ain't got to mainstream, one of them was "Hot / Cold volume" (yes, you can't really google it). From my interpretation, the idea was that in a given asset there is a usual constant volume that stays there no matter what, and if it ever changes it changes very slow and gradually; and there's another kind of, so to say, 'active' volume that actually influences price dynamics and very volatile by its nature. So I've met concept lately, and decided to quantify & model it one day when I'll have an idea how. That day was yesterday.
Compression
When we do music we always use different kinds of filters (low-pass, high pass, etc) for equalization and filtering itself. That stuff we use in finance as well. What we also always use in music are compressors, there dynamic processors that automatically adjust volume so it will be more consistent. Almost all the cool music you hear is compressed (both individual instruments (especially vocals) and the whole track afterwards), otherwise stuff will be too quite and too weak to flex on it, and also DJing it would be a nightmare. I am a big adept of loudness war. So I was like, how can I use compression in finance, when ima get an idea? That day was yesterday as well.
Volume structure
Being inspired by Steidlmayer's idea, I decided to distinguish volume this way:
1) Passive / static volume. The ~ volume that's always there no matter what (hedges, arbitrages, spread legs, portfolio parts etc etc), doesn't affect things;
2) Active / dynamic volume. The volume that flows from one asset to another, really matters and affects things;
3) Excess volume. The last portion of number 2 volume, that doesn't represent any powerful value to affect things.
Now it's clear that we can get rid of number 1 and number 3, the components that don't really matter, and concentrate on number 2 in order to improve information gain, both for ourselves and for the models we feed this data. How?
Model
I don't wanna explain it all in statistical / DSP way for once.
First of all, I think the population of volumes is log-normally distributed, so let's take logs of volumes, now we have a ~ normally distributed data. We take linearly weighted mean, add and subtract linearly weighted standard deviation from it, these would be our thresholds, the borders between different kinds of volumes explained before.
The upper threshold is for downward compression, that will not let volume pass it higher.
The lower threshold is for upward compression, all the volumes lower than this threshold will be brought up to the threshold's level.
Then we apply multipliers to the thresholds in order to adjust em and find the sweet spots. We do it the same way as in sound engineering when we don't aim for overcompression, we adjust the thresholds until they start to touch the signal and all good.
Afterwards, we delete all the number 1 and number 3 volume, leaving us exclusively with the clear main component, ready to be processed further.
We return the volumes to dem real scale.
About the parameters, based on testing I don't recommend changing the thresholds from dem default values, first of all they make sense statistically and second they work as intended.
Window length can and should be adjusted, find your own way, or leave the default value. ML (moving location) length is up to you as well.
So yeah, you can see now we can smooth the data and make it visually appealing not only by applying a smooth filter over it.
All good TV?
[CBB] Volatility Squeeze ToyThe main concept and features of this script are adapted from Mark Whistler's book "Volatility Illuminated". I have deviated from the use cases and strategies presented in the book, but the 3 Bollinger Bands use his optimized settings as the default length and standard deviation multiplier. Further insights into Mark's concepts and volatility research were gained by reading and watching some of TV user DadShark's materials (www.tradingview.com).
This script has been through many refinements and feature cycles, and I've added unrelated complimentary features not present in the book. The indicator is better studied than described, and unless you have read the book, any short summary of the material will just make you squint and think about the wrong things.
Here is a limited outline of features and concepts:
1. 3 Bollinger Bands of different length and/or deviation multiplier. Perhaps think of them as representing the various time frames that compression and expansion cycles and events manifest in, and also the expression of range, speed and price distribution within those time frames. You can gain insight into the magnitude of events based on how the three bands interact and stay contained, or not. If volatility is significant enough, all "time frames" represented by the bands will eventually record the event and subsequent price action, but the early signals will come from the spasms of the shortest, most volatile band. Many times the short band will contract again before, or just as it reaches a longer band, but in extreme cases, volatility will explode and all bands at all time frames will erupt in succession. In these cases you will see additional color representing shorter bands (lower time frame volatility in concept) traveling outside of longer bands. It is worth taking a look at the price levels and candles where these volatility bands cross each other.
2. In addition to the mean of the bands, there are a variety of other moving averages available to gauge trend, range, and areas of interest. This is accomplished with variable VWAP, ATR, smoothing, and a special derived loosely from the difference between them.
3. The bands are also used to derive conditions under which volatility is considered compressed, or in "squeeze" . Under these conditions the candles will turn yellow. Depending on your chart settings and indicator settings, these zones can be completely useless or drag on through fairly significant price action. Or, the can give you fantastic levels to watch for breakouts. The point is that volatility is compressed during these conditions, and you should expect the inevitable once this condition ends. Sometimes you can find yourself in a nice fat trend straight away, other times you may blow an account because you gorged your position based on arbitrary bar color. It's not like that. Pay attention to the highest and lowest bars of these squeeze ranges, and carefully observe future price action when it returns to these squeeze ranges. This info is more and more valuable at higher time frames.
The 3 bands, a smoothed long trend VWAP, and the squeeze condition colored bars are all active by default. All features can be shown or hidden on the control panel.
There are some deep market insights to mine if you live with this one for a while. As with any indicator, blunt "buy/sell here" approaches will lead to loss and frustration. however , if you pay attention to squeeze range, band/moving average confluence, high volume and/or large range candles their open/close behavior around these areas and squeeze ranges, you will start to catch the beginning of some powerful momentum moves.
Enjoy!
ATR Volume DivergenceThe indicator measures ATR relative to VOLUME of each candle, marks the candles where there is more volume than in the previous one, but a lower ATR - signifying a compression in price movement - resistance. It also marks the candle where there is a greater ATR than in the previous candle, but lower volume - signifying an expansion in price movement - vacuum.
P.S. Bring indicator to FRONT to see the colored candles clearly
Baekdoo compressed multi EMA box and its crossover indicatorHi forks,
I'm trader Baekdoosan who trading Equity from South Korea. This Baekdoo compressed multi EMA box and its crossover indicator tells us good trading time for swing trading.
Here is the idea. As you can see formula, I put ema of 5 days to 100 days.
and draw box when all disparity of the EMAs are less than 5%
I put those value in input variable as 105 (100 means same as max/min disparity ratio, 105 means max is 5% greater than min). This can be used 110 (10% of box) based on your needs.
Once box are drew, I put indicator when it crossover the box with 5 times larger than 60 days' highest volume. Then I put triangle indicator. This will be good trading point for short-mid term trading. you can check historical chart to evaluate this.
Hope this will help your trading on equity as well as crypto. I didn't try it on futures . Best of luck all of you. Gazua~!
Compression support&resistance [LM]Hello traders,
I would like to present you Compression support&resistance script. The idea behind is to look for areas of price compression(inside bar candles). Basically the S/R lines are created after three candles that are formed in certain pattern and volume conditions. First candle of pattern is usually the most volatile and fist inside bar after volatile candle high and low creates S/R lines in order to look for breakouts or for future bounces of the S/R line. Also by default volume has to be decreasing from candle to candle, although this condition can be controlled by setting.
It has various settings as my other S/R scripts for multi timeframe analysis. The current timeframe uses line API but for multi timeframe I use plot lines. There are two filters. Volume filter for declining volume of the pattern candles and volatility filter which renders line only in case that pattern occurs after some % change has happened within some lookback period.
Credit also for this indicator goes to @berkek as he took time to explain it to me.
Hope you will enjoy it,
Lukas
Compressed Volume Levels [DepthHouse]Compressed Volume Levels closely analyzes peak volume along with price action to detect critical levels.
The compression levels generated are often an early indication of possible tops, bottoms, or even a future support or resistance levels.
Warning: Since this is a volume based indicator results will vary based on the asset and volume of the exchange.
The factor & lookback at which it detects these levels can be set by the user. The lower the factor the more levels that will generate.
Built in Alerts (must be set up by user):
Verified Support and Resistance once a level is confirmed.
Upward and Downwards Compression alerts; earliest signal possible for major volume coming in.
To gain access to this indicator please follow the link below.
Feel free to message me with any questions directly here on TradingView.
Bollinger Bands Width with Compression by UJBBollinger Band width % with compression line and color changing area.
ATR% with Compression by UJBPlot ATR% along with selected compression horizontal line. Bar color changes when inside specified value.
Dynamic Equalizer [DW]This is an experimental study inspired by techniques primarily utilized in the visual and audio processing worlds.
This study is designed to serve as a pre or post processing filter designer that allows you to shape the frequency spectrum of your data on a more "in-depth" level.
First the data is fed through my Band-Shelf Equalizer function.
The EQ in this script works by dividing the input signal into 6 bands and 2 shelves using a series of roofing filters.
The bands are then gain adjusted recursively (in %) to match source as closely as possible at unity gain.
The recursive adjustment size can be changed using the "Gain Adjustment Increment" input, which will affect how tightly the resulting filter approximates source at unity.
The frequency range of each band is adjustable via the period inputs. In default settings, these are the ranges:
-> Low Shelf : 256+ Samples Per Cycle. This shelf is the largest trend component of the signal. Unlike the other bands and shelf, this shelf is not zero mean unless source data is.
-> Band 1 : 128 - 256 Samples Per Cycle. This band is a moderate trend and low cyclic component of the signal.
-> Band 2 : 64 - 128 Samples Per Cycle. This band is a mild trend and moderate cyclic component of the signal.
-> Band 3 : 32 - 64 Samples Per Cycle. This band is a high cyclic component of the signal.
-> Band 4 : 16 - 32 Samples Per Cycle. This band is a high cyclic component of the signal.
-> Band 5 : 8 - 16 Samples Per Cycle. This band is a moderate cyclic and mild to moderate noise component of the signal.
-> Band 6 : 4 - 8 Samples Per Cycle. This band is a high noise component of the signal.
-> High Shelf : 4- Samples Per Cycle. This shelf is primarily noise.
Each band and shelf can be manually gain adjusted via their respective inputs.
After EQ processing, each band and shelf is then optionally fed through my Peak Envelope Compressor function for dynamics control.
The compressor in this script works by reducing band power by a specified percentage when it exceeds a user defined percentage of the peak envelope.
The peak envelope measures maximum power of the band over its period range multiplied by a user defined integer.
There is an option included to apply Butterworth smoothing to the envelope as well, which will alter the shape of the compressor.
If you want an envelope that quickly responds to power peaks, use little to no smoothing. If you desire something more static, use a large smoothing period.
Attack and release are included in the algorithm to shape the sensitivity of the compressor.
Attack controls how many bars it takes from being triggered for attenuation to reach its target amount.
Release controls how many bars it takes from being un-triggered for attenuation to reach back to 0.
In addition, the compressor is equipped with parallel processing.
The "Parallel Mix" inputs control the amount of compressed vs non-compressed signal presence in the final output.
And of course, the compressor has a post-processing gain input (in %) to fine-tune the presence of the band.
For easy visual tuning, you can view each independent band's magnitude or power by selecting them in the display inputs.
This display setup can also be beneficial analytically if you wish to analyze specific frequency components of the source signal.
The default preset for this script is meant to show how versatile EQ filtering and compression can be for technical analysis.
The EQ preset detrends the data, moderately smooths the data, and emphasizes dominant cyclical ranges.
The compression preset provides fast, moderately heavy shaping to dial in dynamics and reduce transient effects.
The resulting curve is a great filter for responsively analyzing cyclical momentum.
The script is also fully equipped with outputs that can be used externally by other scripts.
You can integrate these external outputs with your own script by using a source input. Simply select the desired output from the dropdown tab on your script.
Multiband filtering and compression are concepts that are not conventionally used in the world of finance.
However, the versatile capabilities of these concepts make this a wonderful tool to have in the arsenal.
By surgically adjusting separate frequency components of a signal, you're able to design a wide variety of filters with unique responses for a vast array of applications.
Play around with the settings and see what kinds of filters you can design!
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This is a premium script, and access is granted on an invite-only basis.
To gain access, get a copy of the script overview, or for additional inquiries, send me a direct message.
I look forward to hearing from you!
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General Disclaimer:
Trading stocks, futures, Forex, options, ETFs, cryptocurrencies or any other financial instrument has large potential rewards, but also large potential risk.
You must be aware of the risks and be willing to accept them in order to invest in stocks, futures, Forex, options, ETFs or cryptocurrencies.
Don’t trade with money you can’t afford to lose.
This is neither a solicitation nor an offer to Buy/Sell stocks, futures, Forex, options, ETFs, cryptocurrencies or any other financial instrument.
No representation is being made that any account will or is likely to achieve profits or losses of any kind.
The past performance of any trading system or methodology is not necessarily indicative of future results.
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NOTE: Unlike standard tools of this nature in other applications, I scaled the signals in % rather than dB, mainly since it's proven so far to be more user-friendly to keep things linear on here.
In addition, no transitions to frequency domain are done in this script. This EQ is an experimental variant that processes in the time domain and relies on a network of roofing filters.
When changing cutoff periods, make sure they are organized in descending order with low shelf as the highest period, and high shelf as the lowest period.
Using non-descending lengths may result in an undesired output.
Lastly, when changing cutoff periods, parts of the spectrum may leak slightly differently between bands, so the "Gain Match Adjustment Increment" may need to be changed as well if you want it to match as closely as possible at unity.
Despite these shortcomings, this tool functions surprisingly well, especially with the default periods, and it's quickly become one of my favorites. I hope you all enjoy it!
Array-Trend-BandsHere I propose a simple trend following system, where one can ride out moves in a trending direction and use it to reenter the trades in the direction of the trend. This band is also capable of tracking down the strength of the price action, there will be a real indication of compression in price movement and expansion.
These zones usually blow traders' accounts when they trade MA's, they end up taking too many trades in the compression zones, it an inherent fault with the MA systems, no matter which MA you use. This, however, is a very clear indicator to avoid these compression zones to take the trade and enter only when price gives clear breakout.
This indicator does not require user input and it works on all TF and all instruments, as long as there is a price, this will work.
Past performance is no assurance of future success. This is an idea for education purposes only.
Please note that this is coded using TV's newly introduced array functions, so it's extremely snappy.
Regards!
Pascal's Market Compression OscillatorThe indicator uses a standardized measure of volume and volatility to visualize the compression state of the market.
- Green: Market is currently compressing
- Red: Market is currently expanding
When the oscillator flips from Green to Red, the market is likely to enter a phase of expansion. This opens a window of opportunity for momentum strategies.
When the oscillator flips from Red to Green, the market is likely to enter a phase of compression. This makes it a favorable regime for mean reversion strategies.
Finally, please note that the indicator is NOT meant for directional analysis. e.g. when the oscillator signals "expansion", that can be up OR down.
