Custom Volatility Price-Based Indicator

23 Nov 2024

This script provides an interactive volatility-based indicator that helps traders visualize key price levels based on the opening price, volatility (ATR), and the first 3 30-minute intervals of the trading day. It offers flexibility through user inputs for volatility adjustments, making it a customizable tool for assessing potential price movements and volatility for the current trading day.

Step 1: Input Volaiti
ATR Length: User-defined period for calculating volatility (default is 14).
Custom Multiplier Value: Allows users to adjust volatility with a multiplier. Defaults to using ATR if set to 0.

Step 2: Volatility Calculation
ATR Daily: Fetches the daily Average True Range (ATR) for volatility.
Volatility Adjustment: If the custom multiplier is used, it adjusts the ATR accordingly.

Step 3: Upper and Lower Levels
Opening Price: Displays the opening price of the current day.
Upper/Lower Levels: Calculated by adding/subtracting the adjusted volatility to/from the opening price.

Step 4: Plot Opening Price
Plots the Opening Price on the price scale in white.

Step 5: Highest and Lowest of First 3 30-Minute Intervals
Records the highest and lowest prices in the first three 30-minute intervals (9:30-11:00 AM).

Step 6: Adjusted Prices
Adjusted Top/Bottom: Adds/subtracts the ATR to the highest and lowest prices from Step 5 and plots them in purple and pink.

Plotting:
Displays the upper, lower, opening, and adjusted price levels as steplines in different colors for easy visualization.
This script helps traders visualize volatility-based levels, including the opening price and early market range, with customizable adjustments based on ATR.