OPEN-SOURCE SCRIPT
3 Bars Volatility + Sector & Industry
**VCP by Ram Sethi – 3 Bar Volatility (Dynamic Timeframe)**
This indicator helps identify short-term **volatility contraction** using a simple 3-bar range analysis, designed for traders focusing on clean price structure and breakout setups.
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### 🔍 Key Features:
* Uses **3-bar volatility calculation** based on:
* Close Range
* High–Low Range
* Fully **dynamic timeframe-based**
* Works on any chart timeframe (1 min to yearly)
* Automatically adapts to the chart you are viewing
* Clean **table display (top-left)** for quick reference
* Displays **Sector and Industry** of the stock for better decision-making
---
### 📊 What It Shows:
* **Close Range (%)** → Measures tightness in closing prices
* **High–Low Range (%)** → Measures overall price volatility
* **Sector & Industry** → Helps identify where the stock belongs and track money flow
Lower values indicate **price contraction**, which is a key characteristic of potential breakout setups.
---
### 🎯 How to Use:
* Look for **low volatility readings (tight ranges)**
* Focus on stocks within **strong sectors or leading industries**
* Combine with:
* Trend direction
* Breakout levels
* Volume expansion
Best used for:
* VCP (Volatility Contraction Pattern)
* Breakout trading
* Swing setups
---
### ⚡ Important Note:
This indicator follows the **current chart timeframe**.
Example:
* On a 5-minute chart → calculates last 3 candles
* On a daily chart → calculates last 3 days
---
### 💡 Purpose:
To help traders quickly identify **tight price action + sector strength**, enabling better alignment with where the market money is flowing.
This indicator helps identify short-term **volatility contraction** using a simple 3-bar range analysis, designed for traders focusing on clean price structure and breakout setups.
---
### 🔍 Key Features:
* Uses **3-bar volatility calculation** based on:
* Close Range
* High–Low Range
* Fully **dynamic timeframe-based**
* Works on any chart timeframe (1 min to yearly)
* Automatically adapts to the chart you are viewing
* Clean **table display (top-left)** for quick reference
* Displays **Sector and Industry** of the stock for better decision-making
---
### 📊 What It Shows:
* **Close Range (%)** → Measures tightness in closing prices
* **High–Low Range (%)** → Measures overall price volatility
* **Sector & Industry** → Helps identify where the stock belongs and track money flow
Lower values indicate **price contraction**, which is a key characteristic of potential breakout setups.
---
### 🎯 How to Use:
* Look for **low volatility readings (tight ranges)**
* Focus on stocks within **strong sectors or leading industries**
* Combine with:
* Trend direction
* Breakout levels
* Volume expansion
Best used for:
* VCP (Volatility Contraction Pattern)
* Breakout trading
* Swing setups
---
### ⚡ Important Note:
This indicator follows the **current chart timeframe**.
Example:
* On a 5-minute chart → calculates last 3 candles
* On a daily chart → calculates last 3 days
---
### 💡 Purpose:
To help traders quickly identify **tight price action + sector strength**, enabling better alignment with where the market money is flowing.
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.