OPEN-SOURCE SCRIPT
Nifty Next Day Range
This Pine Script indicator, "Nifty Next Day Range", calculates and displays expected price ranges for the Nifty 50 index based on the India VIX (volatility index).
How It Works
The script uses daily closing prices and applies a standard volatility-based formula:
Data Sources (from previous day's close):
Nifty 50 closing price
India VIX closing price
Key Calculations:
A = VIX Close ÷ 16 (converts annualized volatility to daily)
AA = (Nifty Close × A) ÷ 100 (daily expected move in points)
Upside Range = Nifty Close + AA
Downside Range = Nifty Close - AA
Visual Elements:
Green line: Upside resistance level
Red line: Downside support level
Gray line: Previous day's closing price (baseline)
Purple fill: The calculated range zone
Background color: Green when price exceeds upside range, red when below downside range
Information Table (top-right corner):
Displays all calculated values (Nifty close, VIX close, A value, range width, upside/downside levels)
Alerts:
Triggers when Nifty crosses above the upside range or below the downside range
Practical Use
This is a volatility-based range forecast tool. Traders use it to identify:
Expected support/resistance levels for the next trading day
Overbought/oversold conditions (when price trades outside the calculated range)
Volatility-adjusted price targets
The formula (VIX ÷ 16) is the standard method for converting annualized implied volatility into a 1-standard-deviation daily expected move (assuming 252 trading days: √252 ≈ 16).
How It Works
The script uses daily closing prices and applies a standard volatility-based formula:
Data Sources (from previous day's close):
Nifty 50 closing price
India VIX closing price
Key Calculations:
A = VIX Close ÷ 16 (converts annualized volatility to daily)
AA = (Nifty Close × A) ÷ 100 (daily expected move in points)
Upside Range = Nifty Close + AA
Downside Range = Nifty Close - AA
Visual Elements:
Green line: Upside resistance level
Red line: Downside support level
Gray line: Previous day's closing price (baseline)
Purple fill: The calculated range zone
Background color: Green when price exceeds upside range, red when below downside range
Information Table (top-right corner):
Displays all calculated values (Nifty close, VIX close, A value, range width, upside/downside levels)
Alerts:
Triggers when Nifty crosses above the upside range or below the downside range
Practical Use
This is a volatility-based range forecast tool. Traders use it to identify:
Expected support/resistance levels for the next trading day
Overbought/oversold conditions (when price trades outside the calculated range)
Volatility-adjusted price targets
The formula (VIX ÷ 16) is the standard method for converting annualized implied volatility into a 1-standard-deviation daily expected move (assuming 252 trading days: √252 ≈ 16).
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。