OPEN-SOURCE SCRIPT
Low Volatility Range Breaks [BigBeluga]
Updated
Low Volatility Range Breaks [BigBeluga]
The Low Volatility Range Breaks indicator is an advanced technical analysis tool designed to identify periods of low volatility and potential breakout opportunities. By visualizing low volatility ranges as ranges and tracking subsequent price movements, this indicator helps traders spot potential high-probability trade setups.
🔵KEY FEATURES
● Low Volatility Detection
● Volatility Box Visualization
● Breakout Detection
● Probability Tracking
🔵HOW TO USE
● Identifying Low Volatility Periods
● Anticipating Breakouts
● Trading Breakouts
● Managing Risk
● Trend Analysis
🔵CUSTOMIZATION
The Low Volatility Box Breaks indicator offers several customization options:
By fine-tuning these settings, traders can adapt the indicator to various market conditions and personal trading strategies.
The Low Volatility Range Breaks indicator provides a unique approach to identifying potential breakout opportunities following periods of consolidation. By visually representing low volatility periods and tracking subsequent price movements, it offers traders a powerful tool for spotting high-probability trade setups.
This indicator can be particularly useful for traders focusing on breakout strategies, mean reversion tactics, or those looking to enter trades at the beginning of new trends. The combination of visual cues (boxes and breakout labels) and quantitative data (probability counters) provides a comprehensive view of market dynamics during and after low volatility periods.
As with all technical indicators, it's recommended to use the Low Volatility Range Breaks indicator in conjunction with other forms of analysis and within the context of a well-defined trading strategy. While this indicator can provide valuable insights into potential breakouts, it should be considered alongside other factors such as overall market trends, volume, and fundamental analysis when making trading decisions.
The Low Volatility Range Breaks indicator is an advanced technical analysis tool designed to identify periods of low volatility and potential breakout opportunities. By visualizing low volatility ranges as ranges and tracking subsequent price movements, this indicator helps traders spot potential high-probability trade setups.
🔵KEY FEATURES
● Low Volatility Detection
- Identifies periods of low volatility based on highest and lowest periods and user-defined sensitivity
- Uses a combination of highest/lowest price calculations and ATR for dynamic adaptation
● Volatility Box Visualization
- Creates a box to represent the low volatility range
- Box height is adjustable based on ATR multiplier
- Includes a mid-line for reference within the box
● Breakout Detection
- Identifies when price breaks above or below the volatility box
- Labels breakouts as "Break Up" or "Break Dn" on the chart
- Changes box appearance to indicate a completed breakout
● Probability Tracking
- Counts the number of closes above and below the box's mid-line
- Displays probability counters for potential upward and downward moves
- Resets counters after a confirmed breakout
🔵HOW TO USE
● Identifying Low Volatility Periods
- Watch for the formation of volatility boxes on the chart
- These boxes represent periods where price movement has been confined
● Anticipating Breakouts
- Monitor price action as it approaches the edges of the volatility box
- Use the probability counters to gauge the likely direction of the breakout
● Trading Breakouts
- Consider posible entering trades when price breaks above or below the volatility box
- Use the breakout labels ("Break Up" or "Break Dn") as a trading opportunity
● Managing Risk
- Use the opposite side of the volatility box as a potential invalidation level
- Consider the box height for position sizing and risk management
● Trend Analysis
- Multiple upward breakouts may indicate a developing uptrend
- Multiple downward breakouts may suggest a forming downtrend
- Use in conjunction with other trend indicators for confirmation
🔵CUSTOMIZATION
The Low Volatility Box Breaks indicator offers several customization options:
- Adjust the volatility length to change the period for highest/lowest price calculations
- Modify the volatility level to fine-tune the sensitivity of low volatility detection
- Adjust the box height multiplier to change the size of volatility boxes
By fine-tuning these settings, traders can adapt the indicator to various market conditions and personal trading strategies.
The Low Volatility Range Breaks indicator provides a unique approach to identifying potential breakout opportunities following periods of consolidation. By visually representing low volatility periods and tracking subsequent price movements, it offers traders a powerful tool for spotting high-probability trade setups.
This indicator can be particularly useful for traders focusing on breakout strategies, mean reversion tactics, or those looking to enter trades at the beginning of new trends. The combination of visual cues (boxes and breakout labels) and quantitative data (probability counters) provides a comprehensive view of market dynamics during and after low volatility periods.
As with all technical indicators, it's recommended to use the Low Volatility Range Breaks indicator in conjunction with other forms of analysis and within the context of a well-defined trading strategy. While this indicator can provide valuable insights into potential breakouts, it should be considered alongside other factors such as overall market trends, volume, and fundamental analysis when making trading decisions.
Release Notes
Fix:volatility_level tooltip description
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.
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All scripts & content provided by BigBeluga are for informational & educational purposes only.
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