OPEN-SOURCE SCRIPT
COTE Volatility
COTE Volatility
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1. WHAT THIS INDICATOR DOES
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COTE Volatility is a price-based volatility indicator designed to detect abnormal price expansion using ATR (Average True Range).
Its main purpose:
→ Identify **volatility spikes**
→ Highlight **explosive candles (expansion bars)**
→ Separate bullish and bearish momentum bursts
It answers:
→ “Is this move normal or abnormal?”
→ “Is this candle driven by strong participation?”
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
2. CORE LOGIC / UNIQUE EDGE
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
This is NOT just an ATR indicator.
It simplifies volatility into a **clear decision signal**:
━━━━━━━━━━
1) ATR-Based Dynamic Threshold
━━━━━━━━━━
Instead of fixed thresholds:
→ Uses ATR (market volatility baseline)
→ Adapts automatically to market conditions
Formula:
ATR × Multiplier = volatility threshold
---
━━━━━━━━━━
2) Expansion Detection (Core Mechanism)
━━━━━━━━━━
Measures candle size:
candleRange = high - low
Then compares:
candleRange > ATR × multiplier
If TRUE:
→ This is a **volatility spike**
Meaning:
→ Market moved more than expected
---
━━━━━━━━━━
3) Directional Filtering
━━━━━━━━━━
Not all spikes are equal.
The indicator separates:
• Bullish Spike → close > open
• Bearish Spike → close < open
This gives:
→ Direction + strength in one signal
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
3. HOW IT WORKS
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
STEP 1 — Calculate ATR
→ Measures average volatility
STEP 2 — Measure Candle Range
→ high - low
STEP 3 — Compare with Threshold
If:
candleRange > ATR × multiplier
→ Volatility Spike detected
STEP 4 — Classify Direction
• Close > Open → Bullish Spike
• Close < Open → Bearish Spike
STEP 5 — Plot Signals
• Green triangle → Bullish expansion
• Red triangle → Bearish expansion
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
4. HOW TO USE
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
━━━━━━━━━━
1) Breakout Confirmation
━━━━━━━━━━
Large spike after consolidation:
→ Confirms breakout strength
→ Not a fake move
---
━━━━━━━━━━
2) Momentum Entry
━━━━━━━━━━
Bullish spike:
→ Strong buying pressure
Bearish spike:
→ Strong selling pressure
Best used with:
→ Trend direction
→ Support / resistance
---
━━━━━━━━━━
3) Trap Detection
━━━━━━━━━━
Spike against higher timeframe trend:
→ Possible trap / fake move
Example:
→ Bear spike in strong uptrend → absorption
---
━━━━━━━━━━
4) Volatility Regime Shift
━━━━━━━━━━
Clusters of spikes:
→ Market transitioning from low → high volatility
Important for:
→ Timing expansion phases
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
5. SETTINGS GUIDE
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
atrLength
→ ATR sensitivity
Low → reacts faster
High → smoother, slower
multiplier
→ Spike threshold
Low (1.5–2.0) → more signals
High (2.5–3.0) → only extreme moves
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
6. IMPORTANT NOTES
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
• This indicator does NOT predict direction
→ Only shows volatility expansion
• A spike ≠ automatic entry
→ Must be combined with context
• Works best with:
→ Trend
→ Liquidity zones
→ Volume analysis
• In low volatility markets:
→ Signals will be rare
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
🎯 KEY INSIGHT
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
This indicator is designed to detect:
→ Abnormal price expansion
→ Institutional activity moments
→ High-impact candles
Not just volatility — but **meaningful volatility**
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
1. WHAT THIS INDICATOR DOES
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
COTE Volatility is a price-based volatility indicator designed to detect abnormal price expansion using ATR (Average True Range).
Its main purpose:
→ Identify **volatility spikes**
→ Highlight **explosive candles (expansion bars)**
→ Separate bullish and bearish momentum bursts
It answers:
→ “Is this move normal or abnormal?”
→ “Is this candle driven by strong participation?”
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
2. CORE LOGIC / UNIQUE EDGE
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
This is NOT just an ATR indicator.
It simplifies volatility into a **clear decision signal**:
━━━━━━━━━━
1) ATR-Based Dynamic Threshold
━━━━━━━━━━
Instead of fixed thresholds:
→ Uses ATR (market volatility baseline)
→ Adapts automatically to market conditions
Formula:
ATR × Multiplier = volatility threshold
---
━━━━━━━━━━
2) Expansion Detection (Core Mechanism)
━━━━━━━━━━
Measures candle size:
candleRange = high - low
Then compares:
candleRange > ATR × multiplier
If TRUE:
→ This is a **volatility spike**
Meaning:
→ Market moved more than expected
---
━━━━━━━━━━
3) Directional Filtering
━━━━━━━━━━
Not all spikes are equal.
The indicator separates:
• Bullish Spike → close > open
• Bearish Spike → close < open
This gives:
→ Direction + strength in one signal
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
3. HOW IT WORKS
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
STEP 1 — Calculate ATR
→ Measures average volatility
STEP 2 — Measure Candle Range
→ high - low
STEP 3 — Compare with Threshold
If:
candleRange > ATR × multiplier
→ Volatility Spike detected
STEP 4 — Classify Direction
• Close > Open → Bullish Spike
• Close < Open → Bearish Spike
STEP 5 — Plot Signals
• Green triangle → Bullish expansion
• Red triangle → Bearish expansion
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
4. HOW TO USE
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
━━━━━━━━━━
1) Breakout Confirmation
━━━━━━━━━━
Large spike after consolidation:
→ Confirms breakout strength
→ Not a fake move
---
━━━━━━━━━━
2) Momentum Entry
━━━━━━━━━━
Bullish spike:
→ Strong buying pressure
Bearish spike:
→ Strong selling pressure
Best used with:
→ Trend direction
→ Support / resistance
---
━━━━━━━━━━
3) Trap Detection
━━━━━━━━━━
Spike against higher timeframe trend:
→ Possible trap / fake move
Example:
→ Bear spike in strong uptrend → absorption
---
━━━━━━━━━━
4) Volatility Regime Shift
━━━━━━━━━━
Clusters of spikes:
→ Market transitioning from low → high volatility
Important for:
→ Timing expansion phases
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
5. SETTINGS GUIDE
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
atrLength
→ ATR sensitivity
Low → reacts faster
High → smoother, slower
multiplier
→ Spike threshold
Low (1.5–2.0) → more signals
High (2.5–3.0) → only extreme moves
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
6. IMPORTANT NOTES
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
• This indicator does NOT predict direction
→ Only shows volatility expansion
• A spike ≠ automatic entry
→ Must be combined with context
• Works best with:
→ Trend
→ Liquidity zones
→ Volume analysis
• In low volatility markets:
→ Signals will be rare
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
🎯 KEY INSIGHT
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
This indicator is designed to detect:
→ Abnormal price expansion
→ Institutional activity moments
→ High-impact candles
Not just volatility — but **meaningful volatility**
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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。