Akshat_Vix_Fix Finds Market Bottom

📌 Akshat VIX Fix Indicator - Explanation
This Pine Script creates a custom volatility indicator inspired by the Williams VIX Fix. It detects potential market tops and bottoms based on price volatility, Bollinger Bands, and custom percentile-based thresholds. The script colors bars dynamically based on consecutive signals, providing a visual intensity gradient.

📌 How It Works
1️⃣ Williams VIX Fix Calculation
The script computes WVFix, which measures how low the current price is compared to the highest price over a lookback period (pd).
The formula:
WVF=( Highest Price (pd) −Low Price )/ (Highest Price (pd))×100

This metric helps identify extreme fear in the market (high WVF values indicate potential reversals).
2️⃣ Bollinger Band Analysis
The script calculates Bollinger Bands (BB) using a moving average (midline) and standard deviation (sDev).
The upper band acts as a volatility threshold.
Formula:
Upper Band
=
SMA
(
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𝑉
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,
𝑏
𝑏
𝑙
)
+
(
mult
×
stdev
(
𝑊
𝑉
𝐹
,
𝑏
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)
Upper Band=SMA(WVF,bbl)+(mult×stdev(WVF,bbl))
3️⃣ Percentile-Based High & Low Ranges
The script sets dynamic high and low thresholds (rangeHigh, rangeLow) based on percentiles over a lb lookback period.
These levels highlight unusually high or low volatility values.
4️⃣ Consecutive Signal Tracking
The script tracks how many times in a row WVF crosses the upper band or high range.
If WVF keeps exceeding the threshold, countLime increases.
If it drops below, countLime resets to zero.
5️⃣ Dynamic Color Gradient (Hue Effect)
The histogram bars change color dynamically based on countLime (the number of consecutive signals).
More intense color = stronger volatility.
Gray → No signal
Light Pink → Dark Red → Increasing volatility
Maroon → Extreme volatility


Input Name Type Purpose
pd Integer Lookback period for highest price (used in WVF calculation).
bbl Integer Bollinger Band length.
mult Float Standard deviation multiplier for Bollinger Bands.
lb Integer Lookback period for percentile high calculation.
ph Float Percentile threshold for rangeHigh.
pl Float Percentile threshold for rangeLow.
hp Boolean Toggles display of high/low range levels.
sd Boolean Toggles display of Bollinger Bands.


Williams VIX Fix (Histogram)
-Color intensity changes based on consecutive signals.
Range High & Low Lines
-Orange lines show percentile-based thresholds.
Bollinger Bands (Optional)
-Aqua-colored upper band to track price volatility.

📌 Key Takeaways
✅ Detects volatility spikes and potential market reversals.
✅ Uses Bollinger Bands & percentile-based signals for accuracy.
✅ Dynamic color gradient to visualize increasing intensity.
✅ Customizable lookback & threshold settings for fine-tuning.


By - Akshat Sirohi
Email - sirohi2706[at]gmail.com

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