Williams Vix Fix paired with Supertrend Heatmap

The Williams Vix Fix paired with Supertrend Heatmap indicator is a comprehensive volatility and trend analysis tool that combines a modified Williams Vix Fix with a multi-timeframe Supertrend heatmap to identify potential market bottoms and trend alignment.

Usage

The indicator provides two primary components for market analysis:

• Williams Vix Fix Histograms: These identify potential "synthetic" VIX spikes, often corresponding to market bottoms or significant reversals. When the histogram bars change color (e.g., to red or green), it indicates that the volatility has reached an extreme relative to the Bollinger Bands or percentile lookback.
• Supertrend Heatmap: Located at the bottom of the pane, this multi-timeframe (MTF) grid displays the trend status across eight different timeframes (from 5 minutes to Daily). Green squares signify a bullish Supertrend, while red squares signify a bearish Supertrend.

Traders can use this tool to look for confluence: for example, a Vix Fix spike occurring while lower timeframe Supertrends begin to flip bullish can signal a high-probability reversal point.

Details

The script implements several technical layers:

1. Modified Williams Vix Fix: Unlike the traditional calculation, this version includes a "Reverse" (DN) mode and utilizes a scaler function to normalize price action over a user-defined lookback period. It detects volatility spikes using both Bollinger Bands (Standard Deviation) and Percentile-based ranges.
2. Supertrend Heatmap: This component calculates the Supertrend for various timeframes using request.security. It calculates the distance since the last trend change to determine the current state, providing a snapshot of market sentiment across the board.
3. Volatility Thresholds: The indicator uses two primary methods to color the histogram: crossing above the Upper Bollinger Band or exceeding a specific high percentile of the lookback period.

Settings

Williams Vix Fix

• VixFix UP/DN [1,2]: Selects the calculation method/type for the primary and reverse Vix Fix histograms.
• Reverse Colors: Swaps the green and red color assignments.
• LookBack Period Standard Deviation: Sets the period used for calculating the standard deviation of the high/low range.
• Bollinger Band Length/Mult: Adjusts the period and standard deviation multiplier for the Bollinger Bands applied to the Vix Fix.
• LookBack (Percentile): Sets the historical period used to determine percentile-based volatility extremes.
• Highest/Lowest Percentile: Defines the threshold (e.g., 0.85 for 85%) for percentile-based spike detection.
• Show High/Low Range/SD: Toggles the visibility of the threshold lines on the chart.

Supertrend

• Supertrend Factor: The multiplier used for the ATR-based Supertrend calculation.
• Supertrend PD: The ATR length (period) for the Supertrend.

FAQ

How do I interpret the heatmap?

The heatmap shows the trend direction (Bullish/Bearish) for 5m, 15m, 30m, H1, H2, H3, H4, and Daily timeframes. Alignment across multiple timeframes suggests a stronger trend.

What do the histogram spikes mean?

A spike reaching the threshold lines indicates that current price volatility is extreme relative to recent history, often marking exhaustion points in a trend.

How can I access this script?

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