Upside Downside Volatility of ProfitTrailer Feeder

The Upside Downside Volatility of ProfitTrailer Feeder indicator calculates and visualizes directional volatility metrics to help users understand trend strength and price action dynamics based on ProfitTrailer Feeder criteria.

Usage

The Upside Downside Volatility of ProfitTrailer Feeder script is primarily used to identify the balance between upward and downward price movements over a specific lookback period. Traders can monitor the following outputs:

• Upside Volatility: Represents the average percentage change between candle open and high prices.
• Downside Volatility: Represents the average percentage change between candle open and low prices.
• Difference: The subtraction of downside volatility from upside volatility. A positive value (often colored green) indicates that upside movements are currently more aggressive than downside movements.
• Average Candle Size: The sum of upside and downside volatility, providing a measure of total price range activity.

As per the original logic intended for ProfitTrailer Feeder, this script is designed to be used on a 5-minute candle chart.

Details

The indicator functions by calculating the Simple Moving Average (SMA) of specific percentage price changes.

1. Upside Change: Calculated as (high / open - 1) * 100.
2. Downside Change: Calculated as (1 - low / open) * 100.

The "MinutesToMeasureTrend" input determines the SMA length. For example, if the input is set to 120 minutes and the chart is on a 5-minute timeframe, the indicator calculates the SMA over the last 24 candles (120 / 5). This allows users to match the indicator's behavior with specific bot offset groups or trend measurement settings.

Settings

• MinutesToMeasureTrend: Defines the lookback period in minutes. This value is automatically divided by 5 to determine the number of candles used for the volatility averages.

FAQ

How do I interpret the Difference line?

When the Difference line is above zero, it signifies that the average upward "wick" or movement from the open is greater than the downward movement, suggesting bullish pressure. Conversely, a value below zero suggests bearish pressure.

What timeframe should I use?

This tool is specifically designed for the 5-minute timeframe to maintain consistency with ProfitTrailer Feeder's calculation methodology.

How can I access this tool?

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