█ Overview The Grid by Volatility is designed to provide a dynamic grid overlay on your price chart. This grid is calculated based on the volatility and adjusts in real-time as market conditions change. The indicator uses Standard Deviation to determine volatility and is useful for traders looking to understand price volatility patterns, determine potential support and resistance levels, or validate other trading signals.
█ How It Works The indicator initiates its computations by assessing the market volatility through an established statistical model: the Standard Deviation. Following the volatility determination, the algorithm calculates a central equilibrium line—commonly referred to as the "mid-line"—on the chart to serve as a baseline for additional computations. Subsequently, upper and lower grid lines are algorithmically generated and plotted equidistantly from the central mid-line, with the distance being dictated by the previously calculated volatility metrics.
█ How to Use Trend Analysis: The grid can be used to analyze the underlying trend of the asset. For example, if the price is above the Average Line and moves toward the Upper Range, it indicates a strong bullish trend.
Support and Resistance: The grid lines can act as dynamic support and resistance levels. Price tends to bounce off these levels or breakthrough, providing potential trade opportunities.
Volatility Gauge: The distance between the grid lines serves as a measure of market volatility. Wider lines indicate higher volatility, while narrower lines suggest low volatility.
█ Settings
Volatility Length: Number of bars to calculate the Standard Deviation (Default: 200)
Squeeze Adjustment: Multiplier for the Standard Deviation (Default: 6)
Grid Confirmation Length: Number of bars to calculate the weighted moving average for smoothing the grid lines (Default: 2)
----------------- Disclaimer
The information contained in my Scripts/Indicators/Ideas/Algos/Systems does not constitute financial advice or a solicitation to buy or sell any securities of any type. I will not accept liability for any loss or damage, including without limitation any loss of profit, which may arise directly or indirectly from the use of or reliance on such information.
All investments involve risk, and the past performance of a security, industry, sector, market, financial product, trading strategy, backtest, or individual's trading does not guarantee future results or returns. Investors are fully responsible for any investment decisions they make. Such decisions should be based solely on an evaluation of their financial circumstances, investment objectives, risk tolerance, and liquidity needs.
My Scripts/Indicators/Ideas/Algos/Systems are only for educational purposes!
リリースノート
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Minor fix
リリースノート
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The user can now choose between different volatility calculations
Thanks ! It looks like Predictive Ranges by LuxAlgo, I wonder whats the difference
Zeiierman
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@trylebtrade, Hey, although grid trading systems that provide grid levels on a chart may appear similar at first glance—essentially just lines plotted on the chart—this version elevates the concept by incorporating statistical measures like standard deviation. By doing so, it calculates the grid levels based on the degree to which the asset's price deviates from its average price, offering a more nuanced understanding of market behavior.
Difference Between Using ATR and Standard Deviation (Stdev) ATR (Average True Range): ATR is a volatility measure that gives an average value of the true trading range over a specific period. It accounts for gaps and limit moves and focuses mainly on the range in which the asset has moved. ATR is often used to place stops and take profit levels relative to market volatility.
Standard Deviation (Stdev): Standard deviation is a statistical measure that quantifies the amount of variation or dispersion in a set of values. In the context of trading, standard deviation measures how widely prices are dispersed from the average price over a period.
In grid trading, ATR might be used to set the grid levels relative to market volatility, making the grid adapt to changing market conditions. Standard deviation could be used to set grid levels relative to how statistically significant current price deviations are from the mean price.
trylebtrade
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@Zeiierman, Thank you for the detailed answer. Thanks for your effort
Hi Zeiirman, can you add in an option so that users can select how many recently grid sets to show? For instance, only the latest grid, or ideally inputting a number so that the last X number of grids show -- and not all chart history. :-) Thanks for the great work.
Zeiierman
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@Mindspirit, Thanks for your feedback! we'll look into it :D
PAAJEY
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This indicator works like magic!!!! I really love it. The only thing is too many lines. if an option could be added to chose only the current levels. Thanks for all you do for us.
Zeiierman
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@PAAJEY, Wow thanks for your kind words and thanks for the feedback, we're looking into it!