OPEN-SOURCE SCRIPT
Relative Candle Volatility Index
Updated
I am not certain if something similar is already available out there. However, here's my own implementation of my simple idea of using the length of the candle-body, or wicks (high-low), to derive a Relative Volatility Index / Oscillator.
In summary: When the R.CVI is significantly positive, it indicates a sudden increase in volatility; whereas, when the R.CVI drops significantly negative, it indicates a sudden decrease in volatility -- in relative to the (just prior) market trend.
If you do wish to copy, modify, and publish an alternate version base on this script, please do not plagiarize and kindly reference/link back to this original script. =D
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Note:
In no way is this intended as a financial/investment/trading advice. You are responsible for your own investment decisions and trades.
Please exercise your own judgement for your own trades base on your own risk-aversion level and goals as an investor or a trader. The use of OTHER indicators and analysis in conjunction (tailored to your own style of investing/trading) will help improve confidence of your analysis, for you to determine your own trade decisions.
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Please check out my other indicators sets and series, e.g.
Constructive feedback and suggestions are welcome.
~JuniAiko
(=^~^=)v~
In summary: When the R.CVI is significantly positive, it indicates a sudden increase in volatility; whereas, when the R.CVI drops significantly negative, it indicates a sudden decrease in volatility -- in relative to the (just prior) market trend.
If you do wish to copy, modify, and publish an alternate version base on this script, please do not plagiarize and kindly reference/link back to this original script. =D
~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~
Note:
In no way is this intended as a financial/investment/trading advice. You are responsible for your own investment decisions and trades.
Please exercise your own judgement for your own trades base on your own risk-aversion level and goals as an investor or a trader. The use of OTHER indicators and analysis in conjunction (tailored to your own style of investing/trading) will help improve confidence of your analysis, for you to determine your own trade decisions.
~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~ * ~
Please check out my other indicators sets and series, e.g.
- LIVIDITIUM (dynamic levels),
- AEONDRIFT (multi-levels standard deviation bands),
- FUSIONGAPS (MA based oscillators),
- MAJESTIC (Momentum/Acceleration/Jerk Oscillators),
- PRISM (pSAR based oscillator, with RSI/StochRSI as well as Momentum/Acceleration/Jerk indicators),
- PDF (parabolic SAR /w HighLow Trends Indicator/Bar-color-marking + Dynamic Fib Retrace and Extension Level)
- and more to come.
Constructive feedback and suggestions are welcome.
~JuniAiko
(=^~^=)v~
Release Notes
Adjusted colors for better contrast, and updated titles.Release Notes
Enable/Disable bar-coloring based on RCVI-state.QUICK GUIDE:
Release Notes
See also Relative Candle Volatility & Directionality Index -- an enhanced (closed-source) implementation of the Relative Candle Volatility Index (RCVI), with a Relative Candles Directionality Index (RCDI) added.
Release Notes
Introduced a RCVI-softening factor.Release Notes
Added script header.Release Notes
Updated script header.Release Notes
Plot titles are now made more descriptive to make it easier to define Alerts.Conditions base on the RCVI were implemented in my Strategies, which have substantially boosted their profitability, viz.:
- Increasing trading activities when RCVI is above the upper threshold.
- Stop all trading activities when RCVI is below the lower threshold.
See also:
AEONDRIFT-K
Release Notes
Allow user to choose if they wish to enable/disable clipping of RCVI between 1 and -1.Release Notes
Introduced RCVI % rescaling.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 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.