Historical Volatility based Standard Deviation_V2 — Indicator by UDAY_C_Santhakumar

historical volatility bands historicalvolatility

This Plots the Standard Deviation Price Band based on the Historical Volatility. SD 1, 2, 3.

Version update:
Fixed the Standard Deviation mistake on Version 1.
Added Smoothing Options for those who prefer a less choppy version.
Standard Deviation 3 plot is not set to Default

Uday C Santhakumar

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.

Want to use this script on a chart?

//Created by UCSgears
//Plots Standard deviation on pricechart based on Historical Volatility. 
//This Code will be revised when Implied Volatility is available in trading view.

study(title="UCS_Standard Deviation-Historical Volatility_V2", shorttitle="UCS_StdDev(HV)", overlay = true)

length = input(10, minval=1)
DaystoExpire = input (30, minval=1) 
stddev1=input(true,title="Standard Deviation 1")
stddev2=input(true,title="Standard Deviation 2")
stddev3=input(false,title="Standard Deviation 3")
Smooth = input(true)
sm = input (21, title = "Smooth Length")

annual = 365
per = isintraday or isdaily and interval == 1 ? 1 : 7
hv = stdev(log(close / close[1]), length) * sqrt(annual / per)
stdhv = close*hv*sqrt(DaystoExpire/365) 
stdhv1 = Smooth ? sma(stdhv,sm) : stdhv
stdhv2 = stdhv1*2
stdhv3 = stdhv1*3

Stdhv1u = plot(stddev1 ? (close+stdhv1):na, color = red, title = "1st Standard Deviation Upperband")
Stdhv1d = plot(stddev1 ? (close-stdhv1):na, color = red, title = "1st Standard Deviation Lowerband")
Stdhv2u = plot(stddev2 ? (close+stdhv2):na, color = blue, title = "2nd Standard Deviation Upperband")
Stdhv2d = plot(stddev2 ? (close-stdhv2):na, color = blue, title = "2nd Standard Deviation Lowerband")
Stdhv3u = plot(stddev3 ? (close+stdhv3):na, color = black, title = "3rd Standard Deviation Upperband")
Stdhv3d = plot(stddev3 ? (close-stdhv3):na, color = black, title = "3rd Standard Deviation Lowerband")