OPEN-SOURCE SCRIPT
Volatility Surge Strategy
█ OVERVIEW
Volatility Surge Strategy (VSS) is an original indicator inspired by the concept of the Williams VIX Fix — a method of measuring the depth of price decline from a recent high to replicate VIX-like behavior on any instrument.
This script is a fully independent implementation built from scratch. The core calculation concept (drop depth from highest close) is a publicly known mathematical formula with no copyright. All Pine Script code is original.
█ HOW IT WORKS
• Volatility Index (VI): Measures how far the current low has dropped from the highest close over a lookback period, expressed as a percentage.
• BB Filter: Applies a Bollinger Band to the VI. When VI exceeds the upper band, a volatility spike is detected.
• Switch Signal: Triggers an entry when the candle direction flips (bearish → bullish or vice versa) while a spike is still active — catching the moment momentum begins to shift.
█ ENTRY LOGIC
• Bullish Switch: Spike active on two consecutive bars + previous bar bearish + current bar bullish → Long entry
• Bearish Switch: Spike active on two consecutive bars + previous bar bullish + current bar bearish → Short entry
• All entries fire only on confirmed bars (barstate.isconfirmed)
█ RISK MANAGEMENT
• Stop Loss: ATR × SL Multiplier below/above entry close
• Take Profit: SL distance × Risk/Reward Ratio
• Fixed lot size (1 unit default)
• Commission: 0.05% per side | Slippage: 2 ticks
█ SETTINGS
Volatility Index
• Lookback Period (default 22) — reference window for highest close; increase to reduce sensitivity
BB Filter
• BB Period (default 20) — smoothing window for VI
• BB Multiplier (default 2.0) — spike detection threshold; increase to require stronger moves
Risk Management
• ATR Period (default 14)
• SL ATR Multiplier (default 1.5)
• Risk/Reward Ratio (default 1.5)
█ ALERTS
• High Volatility — VI crosses above the upper band (either candle direction)
• Bullish Switch — spike active, candle flips bearish → bullish
• Bearish Switch — spike active, candle flips bullish → bearish
Set alerts to "Once Per Bar Close" for best accuracy.
█ NOTES
• This indicator works best as a filter or confirmation tool combined with trend direction, key levels, or divergence signals.
• Short timeframes tend to produce noise; higher timeframes (daily and above) show more stable results in testing.
• Past performance does not guarantee future results.
Volatility Surge Strategy (VSS) is an original indicator inspired by the concept of the Williams VIX Fix — a method of measuring the depth of price decline from a recent high to replicate VIX-like behavior on any instrument.
This script is a fully independent implementation built from scratch. The core calculation concept (drop depth from highest close) is a publicly known mathematical formula with no copyright. All Pine Script code is original.
█ HOW IT WORKS
• Volatility Index (VI): Measures how far the current low has dropped from the highest close over a lookback period, expressed as a percentage.
• BB Filter: Applies a Bollinger Band to the VI. When VI exceeds the upper band, a volatility spike is detected.
• Switch Signal: Triggers an entry when the candle direction flips (bearish → bullish or vice versa) while a spike is still active — catching the moment momentum begins to shift.
█ ENTRY LOGIC
• Bullish Switch: Spike active on two consecutive bars + previous bar bearish + current bar bullish → Long entry
• Bearish Switch: Spike active on two consecutive bars + previous bar bullish + current bar bearish → Short entry
• All entries fire only on confirmed bars (barstate.isconfirmed)
█ RISK MANAGEMENT
• Stop Loss: ATR × SL Multiplier below/above entry close
• Take Profit: SL distance × Risk/Reward Ratio
• Fixed lot size (1 unit default)
• Commission: 0.05% per side | Slippage: 2 ticks
█ SETTINGS
Volatility Index
• Lookback Period (default 22) — reference window for highest close; increase to reduce sensitivity
BB Filter
• BB Period (default 20) — smoothing window for VI
• BB Multiplier (default 2.0) — spike detection threshold; increase to require stronger moves
Risk Management
• ATR Period (default 14)
• SL ATR Multiplier (default 1.5)
• Risk/Reward Ratio (default 1.5)
█ ALERTS
• High Volatility — VI crosses above the upper band (either candle direction)
• Bullish Switch — spike active, candle flips bearish → bullish
• Bearish Switch — spike active, candle flips bullish → bearish
Set alerts to "Once Per Bar Close" for best accuracy.
█ NOTES
• This indicator works best as a filter or confirmation tool combined with trend direction, key levels, or divergence signals.
• Short timeframes tend to produce noise; higher timeframes (daily and above) show more stable results in testing.
• Past performance does not guarantee future results.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.