OPEN-SOURCE SCRIPT
Dynamic Volatility Heatmap (ATR)
How the Script Works
Dynamic Thresholds:
atrLow and atrHigh are calculated as percentiles (20% and 80% by default) of ATR values over the last double the ATR period (28 days if ATR is 14).
This creates thresholds that adapt to recent market conditions.
Background Heatmap:
Green: ATR is below the low threshold, indicating calm markets (options are cheap).
Red: ATR is above the high threshold, signaling elevated volatility (options are expensive).
Yellow: ATR is within the normal range, showing neutral market conditions.
Overlay Lines:
]Dynamic lines for atrLow and atrHigh help visualize thresholds on the chart.
Interpretation for Trading
Green Zone (Low ATR):
Interpretation: The market is calm, and options are likely underpriced.
Trade Setup: Favor buying options (e.g., long straddles or long calls/puts) to profit from potential volatility increases.
Red Zone (High ATR):
Interpretation: The market is volatile, and options are likely overpriced.
Trade Setup: Favor selling options (e.g., credit spreads or iron condors) to benefit from volatility decay.
Yellow Zone (Neutral ATR):
Interpretation: Volatility is within typical levels, offering no strong signal.
Trade Setup: Combine with other indicators, such as gamma levels or Bollinger Bands, for confirmation.
5. Enhancing with Other Indicators
Combine with Bollinger Bands:
Overlay Bollinger Bands to identify price extremes and align them with volatility heatmap signals.
Dynamic Thresholds:
atrLow and atrHigh are calculated as percentiles (20% and 80% by default) of ATR values over the last double the ATR period (28 days if ATR is 14).
This creates thresholds that adapt to recent market conditions.
Background Heatmap:
Green: ATR is below the low threshold, indicating calm markets (options are cheap).
Red: ATR is above the high threshold, signaling elevated volatility (options are expensive).
Yellow: ATR is within the normal range, showing neutral market conditions.
Overlay Lines:
]Dynamic lines for atrLow and atrHigh help visualize thresholds on the chart.
Interpretation for Trading
Green Zone (Low ATR):
Interpretation: The market is calm, and options are likely underpriced.
Trade Setup: Favor buying options (e.g., long straddles or long calls/puts) to profit from potential volatility increases.
Red Zone (High ATR):
Interpretation: The market is volatile, and options are likely overpriced.
Trade Setup: Favor selling options (e.g., credit spreads or iron condors) to benefit from volatility decay.
Yellow Zone (Neutral ATR):
Interpretation: Volatility is within typical levels, offering no strong signal.
Trade Setup: Combine with other indicators, such as gamma levels or Bollinger Bands, for confirmation.
5. Enhancing with Other Indicators
Combine with Bollinger Bands:
Overlay Bollinger Bands to identify price extremes and align them with volatility heatmap signals.
オープンソーススクリプト
TradingViewの精神に則り、この作者はスクリプトのソースコードを公開しているので、その内容を理解し検証することができます。作者に感謝です！無料でお使いいただけますが、このコードを投稿に再利用する際にはハウスルールに従うものとします。
免責事項
これらの情報および投稿は、TradingViewが提供または保証する金融、投資、取引、またはその他の種類のアドバイスや推奨を意図したものではなく、またそのようなものでもありません。詳しくは利用規約をご覧ください。
オープンソーススクリプト
TradingViewの精神に則り、この作者はスクリプトのソースコードを公開しているので、その内容を理解し検証することができます。作者に感謝です！無料でお使いいただけますが、このコードを投稿に再利用する際にはハウスルールに従うものとします。
免責事項
これらの情報および投稿は、TradingViewが提供または保証する金融、投資、取引、またはその他の種類のアドバイスや推奨を意図したものではなく、またそのようなものでもありません。詳しくは利用規約をご覧ください。