OPEN-SOURCE SCRIPT
ACTION Locator v2.0
Updated
The indicator is based on making the standard deviation (where the mean is a moving average) a two-lines cross indicator, by applying an MA over it. When the standard deviation is above the MA, there is considered to be enough volatility in the market for trends to form.
Blue background = There is ACTION in the market -- signals it should be safe to trade
Gray background = No ACTION - DO NOT TRADE!
Blue background = There is ACTION in the market -- signals it should be safe to trade
Gray background = No ACTION - DO NOT TRADE!
Release Notes
- Version 2.1 -- Added the Average Sigma Price Build-up signal to the indicator. This is usually quite a strong indication of possible ACTION in the market. Whenever this signals the background is less transparent, signaling a stronger volatility and a higher probability that the market will take ACTION.
- Corrected a bug in the LSMA calculation.
Release Notes
- Version 2.2 -- Added checks against volatility indices in order to indicate whether or not there is
volatility in the market. You can choose between a volatility index for Forex (EVZ)
and two stock indices (VIX). The idea is that if there is volatility in the overall
market, there is a higher probability that the market will take ACTION.
Blue bars (above) = There is ACTION in the market -- signals it should be safe to trade
Gray bars (above) = No ACTION - DO NOT TRADE!
Teal bars (below) = There is force behind the ACTION!
Gray bars (below) = Less volatility in the market, be careful!
Release Notes
- Version 2.3 -- Added a choppiness index filter as a third confirmation for volatility. This is the yellow row of bars. Yellow means there is no choppiness detected and should be safer to trade.
Release Notes
- Version 2.4 -- Changed out the choppiness index for the BERLIN Range Index, as it is less laggy.
Release Notes
- Version 2.5 -- Changed name to include the name of the algo this indicator is part of.
- Added licensing information in the comments.
- Added more information in the header comment to make the indicator easier to understand.
Release Notes
- Version 2.6 -- Added option to alert for orange bars in the BERLIN Range Index (upper row).
Release Notes
- Version 2.7 -- Made some options more clear and added dummy checkboxes to divide the settings into categories.
- Added more VIX tickers to the VIX ticker list to cover more markets.
- Added an option to adapt colors to bright mode (the TradingView color theme).
Release Notes
- Version 2.8 -- Added a custom VIX that is calculated in a similar waythat the Bitcoin Historical Volatility Index (BVOL24H) is calculated, to make a kind of "adaptive" VIX that works on any market.
- Cleaned up a code a bit with line breaks.
Release Notes
- Version 2.9 -- Updated the script to work with new updated pine script rules.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.