OPEN-SOURCE SCRIPT
3 Bars Volatility + Sector & Industry
**VCP by Ram Sethi – 3 Bar Volatility (Dynamic Timeframe)**
This indicator helps identify short-term **volatility contraction** using a simple 3-bar range analysis, designed for traders focusing on clean price structure and breakout setups.
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### 🔍 Key Features:
* Uses **3-bar volatility calculation** based on:
* Close Range
* High–Low Range
* Fully **dynamic timeframe-based**
* Works on any chart timeframe (1 min to yearly)
* Automatically adapts to the chart you are viewing
* Clean **table display (top-left)** for quick reference
* Displays **Sector and Industry** of the stock for better decision-making
---
### 📊 What It Shows:
* **Close Range (%)** → Measures tightness in closing prices
* **High–Low Range (%)** → Measures overall price volatility
* **Sector & Industry** → Helps identify where the stock belongs and track money flow
Lower values indicate **price contraction**, which is a key characteristic of potential breakout setups.
---
### 🎯 How to Use:
* Look for **low volatility readings (tight ranges)**
* Focus on stocks within **strong sectors or leading industries**
* Combine with:
* Trend direction
* Breakout levels
* Volume expansion
Best used for:
* VCP (Volatility Contraction Pattern)
* Breakout trading
* Swing setups
---
### ⚡ Important Note:
This indicator follows the **current chart timeframe**.
Example:
* On a 5-minute chart → calculates last 3 candles
* On a daily chart → calculates last 3 days
---
### 💡 Purpose:
To help traders quickly identify **tight price action + sector strength**, enabling better alignment with where the market money is flowing.
This indicator helps identify short-term **volatility contraction** using a simple 3-bar range analysis, designed for traders focusing on clean price structure and breakout setups.
---
### 🔍 Key Features:
* Uses **3-bar volatility calculation** based on:
* Close Range
* High–Low Range
* Fully **dynamic timeframe-based**
* Works on any chart timeframe (1 min to yearly)
* Automatically adapts to the chart you are viewing
* Clean **table display (top-left)** for quick reference
* Displays **Sector and Industry** of the stock for better decision-making
---
### 📊 What It Shows:
* **Close Range (%)** → Measures tightness in closing prices
* **High–Low Range (%)** → Measures overall price volatility
* **Sector & Industry** → Helps identify where the stock belongs and track money flow
Lower values indicate **price contraction**, which is a key characteristic of potential breakout setups.
---
### 🎯 How to Use:
* Look for **low volatility readings (tight ranges)**
* Focus on stocks within **strong sectors or leading industries**
* Combine with:
* Trend direction
* Breakout levels
* Volume expansion
Best used for:
* VCP (Volatility Contraction Pattern)
* Breakout trading
* Swing setups
---
### ⚡ Important Note:
This indicator follows the **current chart timeframe**.
Example:
* On a 5-minute chart → calculates last 3 candles
* On a daily chart → calculates last 3 days
---
### 💡 Purpose:
To help traders quickly identify **tight price action + sector strength**, enabling better alignment with where the market money is flowing.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.