NicoadW1990

Candle Volatility Index [by NicoadW]

This is the migration of the CandleVolatilitIndex from MT4.

The indicator works as following:

Step 1: The "Volatility Value" is calculated by applying a moving average to the change of the selected source (default: 10-Period-SMA applied to the change from last close to this close -> SMA (close-close , 10) )
Step 2: The signal line is calculated by applying a moving average onto the "Volatility Value" calculated in step 1.

The default settings are the same as in the original MT4 version.

Visualization:

The histogram shows the "Volatility Value" calculated in step 1.

Case 1:
The value is above the signal line (blue bar) -> Volatility is given

Case 2:
The value is below the signal line (grey bar) -> Volatility is not there


This is intended to be used as a Volume / Volatility Indicator for a NNFX-System but can be used in any strategy.
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 a 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.

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