Levels Of Fear [AstrideUnicorn]"Buy at the level of maximum fear when everyone is selling." - says a well-known among traders wisdom. If an asset's price declines significantly from the most recent highest value or established range, traders start to worry. The higher the drawdown gets, the more fear market participants experience. During a sell-off, a feedback loop arises, in which the escalating fear and price decline strengthen each other.
The Levels Of Fear indicator helps analyze price declines and find the best times to buy an asset after a sell-off. In finance, volatility is a term that describes the degree of variation of an asset price over time. It is usually denoted by the letter σ (sigma) and estimated as the standard deviation of the asset price or price returns. The Levels Of Fear indicator helps measure the current price decline in the standard deviation units. It plots seven levels at distances of 1, 2, 3, 4, 5, 6, and 7 standard deviations (sigmas) below the base price (the recent highest price or upper bound of the established range). In what follows, we will refer to these levels as levels of fear.
HOW TO USE
When the price in its decline reaches a certain level of fear, it means that it has declined from its recent highest value by a corresponding number of standard deviations. The indicator helps traders see the minimum levels to which the price may fall and estimate the potential depth of the current decline based on the cause of the actual market shock. Five-seven sigma declines are relatively rare events and correspond to significant market shocks. In the lack of information, 5-7 sigma levels are good for buying an asset. Because when the price falls that deep, it corresponds to the maximum fear and pessimism in the market when most people are selling. In such situations, contrarian logic becomes the best decision.
SETTINGS
Window: the averaging window or period of the indicator. The algorithm uses this parameter to calculate the base level and standard deviations. Higher values are better for measuring deeper and longer declines.
Levels Stability: the parameter used in the decline detection. The higher the value is, the more stable and long the fear levels are, but at the same time, the lag increases. The lower it is, the faster the indicator responds to the price changes, but the fear levels are recalculated more frequently and are less stable. This parameter is mostly for fine-tuning. It does not change the overall picture much.
Mode: the parameter that defines the style for the labels. In the Cool Guys Mode , the indicator displays the labels as emojis. In the Serious Guys Mode , labels show the distance from the base level measured in standard deviation units or sigmas.
Shock
shock detecter [WS]It is paid version.
if you want free version
usually volaility and volume come together,
but if volume is high and volatility is low,
than blue bar increase.
I named it "abnormal volume shock"
so,
blue signal come only if low volatility + high volume.
blue can come when the price is top(or bottom) but this is not a buy(or sell) signal.
(remember, blue is just a strange moment. high volume + low volatility is not a normal situation. you better to focus "why suddenly volume increased" )
briefly,
Blue Bar = volatility < volume
(in other words, candle size < volume )
use red star and OSC to predict next trend!
osc is over-bought and red star = change to down trend.
osc is over-sold and red star = change to up trend.
if simple_mode off,
green star = volume shock
orange star = volume shock over threshold (20)
green bar = volatility shock
yellow star = volatility shock over threshold (20)
red bar = volatility reducing (convergence)
white star = end of convergence
LST Crash Detector SystemDesigned for use on major stock market indices.
Select a weekly timeframe
Green Indicates Bull Market
Red Indicates Potential Crash
Shock Alert Indicates Serious Volatility Suggesting Change Of Trend.