The plot indicates how high the current implied for the next 30 days is relative to the actual realized over the set period. This is most useful for options traders as it may show when the premiums paid on options are over valued relative to the historic risk.
The default is set to one year (252 bars) however any number of bars can be set for the lookback period for HV.
The default is set to for the IV on SPX or SPY but other CBOE implied indexes may be used. For / CL you have OVX /HV and for / GC you have GVX /HV.
Note that the CBOE data for these indexes may be delayed and updated EOD
and may not be suitable for intraday information. (Future versions of this script may be developed to provide a realtime intraday study. )
There is a list of many indexes from CBOE listed at:
(Some may not yet be available on Tradingview)
RVX Russell 2000
VXO S&P 100
VIX6M S&P 500 6-Month
VXEFA Cboe EFA
VXEEM Cboe Emerging Markets
VXFXI Cboe China
VXEWZ Cboe Brazil
VXSLV Cboe Silver
VXGDX Cboe Gold Miners
VXXLE Cboe Energy Sector
EUVIX FX Euro
JYVIX FX Yen
BPVIX FX British Pound
EVZ Cboe EuroCurrency Index
Goldman Sachs VXGS
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.