Fierytrading: Volatility Depth

Dear Tradingview community,

I'd like to share one of my staple indicators with you. The volatility depth indicator calculates the volatility over a 7-day period and plots it on your chart.

This indicator only works for the DAILY chart on BTC/USD.

Colors
I've color coded the indicator as follows:
- Red: Extreme Volatility
- Orange: High Volatility
- Yellow: Normal Volatility
- Green: Low Volatility

Red: extreme changes in price. Often during local tops and bottoms.

Orange: higher than average moves in price. Often before or after a "red" period. Often seen in the middle of bear or bull markets.

Yellow: normal price action. Often seen during early stage bull-markets and late stage bear-markets.

Green: very low price movement. Often during times of indecision. Once this indicator becomes green, you can expect a big move in either direction. Low volatility is always followed by high volatility.
In a long-term uptrend, a green period often signals a bullish break out. In a long-term downtrend it often signals a bearish break out.

How to use
Save the indicator and apply it to your chart. You can change the length in the settings, but it's optimized for 7 days, so no need to change it.

I've build in alerts for all 4 different volatility periods. In most cases, the low volatility alert is enough.

Good luck!