OPEN-SOURCE SCRIPT
Volatility
# Volatility — Body vs. Wick Decomposition
**Every standard volatility tool collapses a candle into one number. That number throws away the
only thing you actually needed to know: whether the range was earned or rejected.**
ATR tells you a bar was 12 points. It cannot tell you whether that was a 12-point body driving t
hrough offers, or a 1-point body with 11 points of wick where price went there and got slammed b
ack. Those two bars have identical ATR. They are opposite trades.
This indicator refuses to average them together.
---
## What it does
**Two independent histograms, volume-style.**
- **Bodies** plot up from zero — the portion of the range that *held*. Committed movement. What
actually printed a close somewhere new.
- **Wicks** plot down from zero — the portion that was *rejected*. Price went, and price came ba
ck. Failed exploration.
Each histogram has its own rolling average and its own spike threshold. A wick spike and a body
spike are different events, and the indicator scores them separately instead of blending them in
to one meaningless mean.
That separation is the whole idea. Range is not a single quantity — it is two opposing forces th
at happen to share a bar.
---
## How to read it
**Tall bodies, short wicks** — trend. The range is being converted into progress. Continuation s
etups work, mean-reversion gets ru
**Short bodies, long wicks** — a fut nobody keeps it. Fades work, brea
kouts fail. This is the state that looks identical to a trend on ATR and costs people money.
**Both compressing** — a coil. Genuine low volatility, not just quiet direction. Expansion pendi
ng.
**Wick spike with no body spike** e tried, got rejected, and the tape
told you so in real time.
**Body share of range** (in the readout) is the single cleanest number here. High share = convic
tion. Low share = indecision. Watc
Split the wick histogram into **upich side* is doing the rejecting. A
run of long upper wicks under a flat high is supply, plainly drawn.
---
## The average candle
On the price pane, the indicator draws a single synthetic candle built from the lookback: averag
e body, average upper wick, averagd separately and drawn to scale.
Crucially, the body is the **net s− open`, not the absolute average. T
his matters more than it sounds:
- In a **trend**, the moves don't cancel — you get a tall body pointing the way the market is ac
tually going.
- In **consolidation**, up and down bars cancel each other out and the body **collapses to a stu
b**, with the wicks left standing
An absolute average can't do that. body in pure chop, because it has d
iscarded the sign. Here, the shape of the average candle *is* the market regime — you read it th
e same way you read any candle, be
Switch to `Body represents: Absolulassic reading where body + wicks eq
uals the average range.
---
## Settings
**Average over** — `Candles` for a fixed bar count (default 50), or `Time` for a clock window co
nverted to bars on your timeframe.urrent leg; long windows describe th
e session's character. A very long window on a fast chart will read flat by design, because that
is the truth about a long window.
**Layout** — `Mirrored` for two ind a zero line, or `Stacked` for one
range column with the body solid inside it, preserving body + wick = range.
**Color mode** — `Above/below average` (default), `Up/down candle` for classic direction tinting
, or `Flat`.
**Spike threshold** — multiple of drawn as a step line on both.
**Avg candle** — position, width, r the body reads net or absolute.
Every color is exposed.
---
## Honest limitations
- Mirrored mode auto-scales to whiwicks routinely dwarf bodies on your
instrument, the body histogram will look compressed — use Stacked.
- The average candle is anchored iight of price, so it drifts closer a
s you zoom out. Adjust the offset.
- Wicks are measured to the extrem will distort a short lookback. That
is a feature when you want to see it and a nuisance when you don't.
---
## Why bother
Volatility is not one number. It is a *composition*. A market can be loud and going nowhere, or
quiet and going somewhere, and thet distinguish those cases because th
e information is destroyed before it reaches you.
This puts the composition back on the chart.
**Every standard volatility tool collapses a candle into one number. That number throws away the
only thing you actually needed to know: whether the range was earned or rejected.**
ATR tells you a bar was 12 points. It cannot tell you whether that was a 12-point body driving t
hrough offers, or a 1-point body with 11 points of wick where price went there and got slammed b
ack. Those two bars have identical ATR. They are opposite trades.
This indicator refuses to average them together.
---
## What it does
**Two independent histograms, volume-style.**
- **Bodies** plot up from zero — the portion of the range that *held*. Committed movement. What
actually printed a close somewhere new.
- **Wicks** plot down from zero — the portion that was *rejected*. Price went, and price came ba
ck. Failed exploration.
Each histogram has its own rolling average and its own spike threshold. A wick spike and a body
spike are different events, and the indicator scores them separately instead of blending them in
to one meaningless mean.
That separation is the whole idea. Range is not a single quantity — it is two opposing forces th
at happen to share a bar.
---
## How to read it
**Tall bodies, short wicks** — trend. The range is being converted into progress. Continuation s
etups work, mean-reversion gets ru
**Short bodies, long wicks** — a fut nobody keeps it. Fades work, brea
kouts fail. This is the state that looks identical to a trend on ATR and costs people money.
**Both compressing** — a coil. Genuine low volatility, not just quiet direction. Expansion pendi
ng.
**Wick spike with no body spike** e tried, got rejected, and the tape
told you so in real time.
**Body share of range** (in the readout) is the single cleanest number here. High share = convic
tion. Low share = indecision. Watc
Split the wick histogram into **upich side* is doing the rejecting. A
run of long upper wicks under a flat high is supply, plainly drawn.
---
## The average candle
On the price pane, the indicator draws a single synthetic candle built from the lookback: averag
e body, average upper wick, averagd separately and drawn to scale.
Crucially, the body is the **net s− open`, not the absolute average. T
his matters more than it sounds:
- In a **trend**, the moves don't cancel — you get a tall body pointing the way the market is ac
tually going.
- In **consolidation**, up and down bars cancel each other out and the body **collapses to a stu
b**, with the wicks left standing
An absolute average can't do that. body in pure chop, because it has d
iscarded the sign. Here, the shape of the average candle *is* the market regime — you read it th
e same way you read any candle, be
Switch to `Body represents: Absolulassic reading where body + wicks eq
uals the average range.
---
## Settings
**Average over** — `Candles` for a fixed bar count (default 50), or `Time` for a clock window co
nverted to bars on your timeframe.urrent leg; long windows describe th
e session's character. A very long window on a fast chart will read flat by design, because that
is the truth about a long window.
**Layout** — `Mirrored` for two ind a zero line, or `Stacked` for one
range column with the body solid inside it, preserving body + wick = range.
**Color mode** — `Above/below average` (default), `Up/down candle` for classic direction tinting
, or `Flat`.
**Spike threshold** — multiple of drawn as a step line on both.
**Avg candle** — position, width, r the body reads net or absolute.
Every color is exposed.
---
## Honest limitations
- Mirrored mode auto-scales to whiwicks routinely dwarf bodies on your
instrument, the body histogram will look compressed — use Stacked.
- The average candle is anchored iight of price, so it drifts closer a
s you zoom out. Adjust the offset.
- Wicks are measured to the extrem will distort a short lookback. That
is a feature when you want to see it and a nuisance when you don't.
---
## Why bother
Volatility is not one number. It is a *composition*. A market can be loud and going nowhere, or
quiet and going somewhere, and thet distinguish those cases because th
e information is destroyed before it reaches you.
This puts the composition back on the chart.
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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。