Best Volatility Calculator (Multi Instruments)

The Best Volatility Calculator (Multi Instruments) indicator provides a comprehensive look at asset price changes across multiple symbols and timeframes, presenting volatility in percentage, currency, and pip formats.

Usage

The tool is designed to help traders monitor market movement intensity across different assets simultaneously. By overlaying data on the chart, users can observe how two different symbols react over two distinct timeframes (e.g., Daily and Weekly).

Key applications include:

• Correlation Analysis: Compare how two related assets (like BTC and ETH) move relative to each other in terms of percentage or pips.
• Contextual Awareness: Quickly see if current price action represents a significant expansion compared to the chosen lookback period.
• Forex Monitoring: Utilize the Pip variation labels to quantify moves in standard FX units, making it easier to gauge risk/reward and stop distances.

Details

Volatility in this script is calculated as the difference between the close of the current candle and the close of a candle $N$ periods ago. The tool uses request.security to fetch data for the user-selected symbols and timeframes. To ensure accuracy and prevent repainting, it references historical data (close[1]) for its calculations. The results are displayed in real-time as informative labels on the right side of the chart.

Settings

• Lookback Period: Determines the number of candles used to calculate the volatility (default is 1, comparing the current close to the previous close).
• Symbol 1 / Symbol 2: Allows you to input the specific tickers you wish to monitor.
• 1st / 2nd Resolution: Sets the timeframes for the volatility calculations (e.g., Daily, Weekly, or Hourly).
• Alert % Threshold: Defines the percentage change required to trigger a volatility spike alert.

FAQ

How do I interpret the different labels?

The script provides three types of data: Percent variation (relative move), Currency variation (nominal value change), and Pip variation (specific to Forex or asset-specific increments).

Does this indicator repaint?

No, the script is coded to reference closed candle data to ensure that the calculated values remain consistent once a bar has closed.

How can I access the Best Volatility Calculator (Multi Instruments)?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.