Volatility Level Indicator – Leverage Decider

📌 Volatility Level Indicator – Leverage Decider
This indicator is designed to help traders determine the current volatility level of any asset and suggest a corresponding leverage range based on market conditions. It is especially useful for futures traders who adjust their position size and risk exposure depending on the volatility regime.

🔍 How It Works
ATR-Based Volatility Analysis:
The indicator uses the Average True Range (ATR) over a user-defined period to measure current market volatility.

Deviation Threshold:
By comparing the current ATR to its smoothed average, it calculates the relative deviation. If the current ATR exceeds the average by a certain threshold (default 20%), the market is considered highly volatile.

Volatility Levels & Leverage Guidance:

📈 High Volatility → Leverage: 3x–5x
Markets are fast and unpredictable. Lower leverage is advised.

⚖️ Mid Volatility → Leverage: 10x–20x
Conditions are balanced. Moderate leverage can be applied.

🧘‍♂️ Low Volatility → Leverage: 20x–35x
Price movement is tight. Higher leverage may be acceptable, but caution is still recommended.

✅ Features
Automatically detects volatility state: High, Mid, or Low

Suggests optimal leverage range for each state

Real-time label updates directly on the chart

Adjustable parameters: ATR Length, Smoothing Period, and Deviation Threshold

💡 Use Cases
Futures and margin traders managing risk

Algorithmic systems adjusting position sizing

Scalpers and swing traders filtering ideal entry environments

⚠️ Disclaimer
This indicator offers guidance based on historical volatility but does not constitute financial advice. Always consider your risk tolerance and trading plan before using leverage.