Based on this knowledge, the numerical spread of the , as shown in the indicator, we can deduce that when the value is super low, we can expect a period of high AKA: big move incoming.
This indicator is not fully finished because this was my first time coding in Pinescript and I wanted to post the basic indicator first.
My future plans for improving this indicator include:
- Adding customization as an option to choose your personal BBands settings that this indicator is based off of
- Potentially converting this indicator as a TradingView Strategy where a signal would go off when the spread reaches a certain threshold
My eventual goal is to figure out a threshold that when reached, creates a general signal of upcoming high volatility. That signal can then be used in conjunction with other indicators (to detect the direction of a trend) to create a buy or sell signal.