OPEN-SOURCE SCRIPT
Cloud Trend by luis [LB]
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1. purpose and originality
the [lb] cloud vol-trend ultra v6 isn't a basic moving average crossover or rsi mashup. its standout feature is the adaptive volatility compression (avc) logic.
most trend indicators flop in low-liquidity times (sundays, holidays) by tracking price alone. this script fixes that by normalizing trend strength against historical volatility (hv).
2. how it works (the math behind it)
the script follows a three-step process:
core trend: compares heikin-ashi smoothed closes over a lookback period to spot the dominant market direction.
volatility normalization: computes annualized historical volatility
hv=100×σ×t^0.5
quality score (elite multiplier): the magic is the acceleration ratio. it divides trend count by a factor from current volatility vs. its 4-period momentum. formula: score = count / (relative volatility * sqrt(volatility accel)). a 2.0 score in high vol beats one in a flat market hands down.
3. how to use it
elite signals (scores < 4.0): these flag institutional "igniting bars." solid green or pink labels mean high-probability breakouts.
perfect gradient: track candle colors. fading to gray shows dropping volatility-to-price ratio—your early exit cue, even if price keeps moving.
settings: bump 'lookback' to 80-100 for swings; drop to 20-40 for scalps.
1. purpose and originality
the [lb] cloud vol-trend ultra v6 isn't a basic moving average crossover or rsi mashup. its standout feature is the adaptive volatility compression (avc) logic.
most trend indicators flop in low-liquidity times (sundays, holidays) by tracking price alone. this script fixes that by normalizing trend strength against historical volatility (hv).
2. how it works (the math behind it)
the script follows a three-step process:
core trend: compares heikin-ashi smoothed closes over a lookback period to spot the dominant market direction.
volatility normalization: computes annualized historical volatility
hv=100×σ×t^0.5
quality score (elite multiplier): the magic is the acceleration ratio. it divides trend count by a factor from current volatility vs. its 4-period momentum. formula: score = count / (relative volatility * sqrt(volatility accel)). a 2.0 score in high vol beats one in a flat market hands down.
3. how to use it
elite signals (scores < 4.0): these flag institutional "igniting bars." solid green or pink labels mean high-probability breakouts.
perfect gradient: track candle colors. fading to gray shows dropping volatility-to-price ratio—your early exit cue, even if price keeps moving.
settings: bump 'lookback' to 80-100 for swings; drop to 20-40 for scalps.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Script open-source
Dans l'esprit TradingView, le créateur de ce script l'a rendu open source afin que les traders puissent examiner et vérifier ses fonctionnalités. Bravo à l'auteur! Bien que vous puissiez l'utiliser gratuitement, n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.