OPEN-SOURCE SCRIPT
Calmness Index [racer8]
Calmness is a theory of mine that says that the more a series of bars resembles a rectangle or base pattern, the more calm it is.
I mean think about it, when is price at it's calmest? When it's not moving of course :) And nothing better demonstrates a dead market like a base pattern. That is what makes this indicator so unique.....it's ability to detect the formation of a price base.
Calculation:
Calmness = (sum of true ranges) / (range * n periods) .............. where range = highest - lowest over n periods
The above formula reflects that the higher the Calmness value, the more calm price is.
What I would do with indicator is only trade when the previous period's calm value is higher than the set dashed level (purple line).
Colors: If market is calm, indicator is gray otherwise orange ........ Enjoy :)
I mean think about it, when is price at it's calmest? When it's not moving of course :) And nothing better demonstrates a dead market like a base pattern. That is what makes this indicator so unique.....it's ability to detect the formation of a price base.
Calculation:
Calmness = (sum of true ranges) / (range * n periods) .............. where range = highest - lowest over n periods
The above formula reflects that the higher the Calmness value, the more calm price is.
What I would do with indicator is only trade when the previous period's calm value is higher than the set dashed level (purple line).
Colors: If market is calm, indicator is gray otherwise orange ........ Enjoy :)
Script de código abierto
Siguiendo fielmente el espíritu de TradingView, el autor de este script lo ha publicado en código abierto, permitiendo que otros traders puedan entenderlo y verificarlo. ¡Olé por el autor! Puede utilizarlo de forma gratuita, pero tenga en cuenta que la reutilización de este código en la publicación se rige por las Normas internas. Puede añadir este script a sus favoritos y usarlo en un gráfico.
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.