OPEN-SOURCE SCRIPT
Log Return & Volatility Bands Indicator
**Log Return & Volatility Bands Indicator**
This Pine Script (v5) indicator for TradingView translates the log-transformation and volatility-tracking concepts used in quantitative finance (such as GARCH modeling) directly onto your chart.
**Key Features:**
* **Logarithmic Returns:** Calculates daily log returns ($\ln(P_t / P_{t-1})$) behind the scenes to accurately measure relative price changes, removing the distorting effect of long-term exponential trends.
* **Annualized Volatility:** Computes the rolling standard deviation of these log returns over a user-defined period, scaling it by the square root of trading days ($\sqrt{252}$) to display annualized market volatility percentage.
* **Volatility Channels:** Plots dynamic upper and lower bands around a Simple Moving Average (SMA) of the price to help identify market breakouts, periods of high uncertainty, and potential mean-reversion points.
**How to Use:**
1. Open TradingView and load your preferred ticker (e.g., **NASDAQ:MU**).
2. Open the **Pine Editor**, paste the script, and click **Add to Chart**.
3. Adjust the length and multiplier parameters in the indicator settings to match your preferred trading timeframe and risk tolerance.
开源脚本
秉承TradingView的精神，该脚本的作者将其开源，以便交易者可以查看和验证其功能。向作者致敬！您可以免费使用该脚本，但请记住，重新发布代码须遵守我们的网站规则。
免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。
开源脚本
秉承TradingView的精神，该脚本的作者将其开源，以便交易者可以查看和验证其功能。向作者致敬！您可以免费使用该脚本，但请记住，重新发布代码须遵守我们的网站规则。
免责声明
这些信息和出版物并非旨在提供，也不构成TradingView提供或认可的任何形式的财务、投资、交易或其他类型的建议或推荐。请阅读使用条款了解更多信息。