OPEN-SOURCE SCRIPT
Updated Volatility Adjusted Momentum Signal ETH (VAMS)
The VAMS ETH indicator is a technical analysis tool designed for Ethereum that aims to provide traders with insights into potential price momentum based on volatility-adjusted price ranges. This indicator is especially useful for identifying periods where the price is likely to experience significant movements away from a defined mean price level.
Key Functions
Volatility Measurement It utilizes a short-term lookback period to measure volatility, calculated as the standard deviation of the closing prices over the user-defined period.
Mean Price Calculation
Simultaneously, it computes the average closing price over the same lookback period to establish a baseline for the current price.
Probable Range Estimation
Using predefined mean percentage changes, the indicator calculates upper and lower boundaries that represent the probable range for price movements. These boundaries are adjusted for volatility, providing a dynamic perspective on where the price is in relation to typical fluctuations.
Signal Visualization
The lower and upper boundaries are plotted on the chart, color-coded in green and red, respectively. These plots help visualize zones where the price might be considered overextended or undervalued based on recent volatility.
The VAMS indicator allows for customization of the lookback period, enabling traders to adjust the sensitivity of the volatility measurement to match their trading style.
Key Functions
Volatility Measurement It utilizes a short-term lookback period to measure volatility, calculated as the standard deviation of the closing prices over the user-defined period.
Mean Price Calculation
Simultaneously, it computes the average closing price over the same lookback period to establish a baseline for the current price.
Probable Range Estimation
Using predefined mean percentage changes, the indicator calculates upper and lower boundaries that represent the probable range for price movements. These boundaries are adjusted for volatility, providing a dynamic perspective on where the price is in relation to typical fluctuations.
Signal Visualization
The lower and upper boundaries are plotted on the chart, color-coded in green and red, respectively. These plots help visualize zones where the price might be considered overextended or undervalued based on recent volatility.
The VAMS indicator allows for customization of the lookback period, enabling traders to adjust the sensitivity of the volatility measurement to match their trading style.
Release Notes
Added plot for the mean priceAdded input for the source of the mean price and volatility
Release Notes
Cleaned script codeOpen-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
🔍 Access Investing Strategies & Indicators
📊 whop.com/marktquant
🌐 marktquant.com
Nothing shared on this page constitutes financial advice. All information, tools, and analyses are provided solely for informational and educational purposes.
📊 whop.com/marktquant
🌐 marktquant.com
Nothing shared on this page constitutes financial advice. All information, tools, and analyses are provided solely for informational and educational purposes.
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
🔍 Access Investing Strategies & Indicators
📊 whop.com/marktquant
🌐 marktquant.com
Nothing shared on this page constitutes financial advice. All information, tools, and analyses are provided solely for informational and educational purposes.
📊 whop.com/marktquant
🌐 marktquant.com
Nothing shared on this page constitutes financial advice. All information, tools, and analyses are provided solely for informational and educational purposes.
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.