OPEN-SOURCE SCRIPT
Nifty Next Day Range
This Pine Script indicator, "Nifty Next Day Range", calculates and displays expected price ranges for the Nifty 50 index based on the India VIX (volatility index).
How It Works
The script uses daily closing prices and applies a standard volatility-based formula:
Data Sources (from previous day's close):
Nifty 50 closing price
India VIX closing price
Key Calculations:
A = VIX Close ÷ 16 (converts annualized volatility to daily)
AA = (Nifty Close × A) ÷ 100 (daily expected move in points)
Upside Range = Nifty Close + AA
Downside Range = Nifty Close - AA
Visual Elements:
Green line: Upside resistance level
Red line: Downside support level
Gray line: Previous day's closing price (baseline)
Purple fill: The calculated range zone
Background color: Green when price exceeds upside range, red when below downside range
Information Table (top-right corner):
Displays all calculated values (Nifty close, VIX close, A value, range width, upside/downside levels)
Alerts:
Triggers when Nifty crosses above the upside range or below the downside range
Practical Use
This is a volatility-based range forecast tool. Traders use it to identify:
Expected support/resistance levels for the next trading day
Overbought/oversold conditions (when price trades outside the calculated range)
Volatility-adjusted price targets
The formula (VIX ÷ 16) is the standard method for converting annualized implied volatility into a 1-standard-deviation daily expected move (assuming 252 trading days: √252 ≈ 16).
How It Works
The script uses daily closing prices and applies a standard volatility-based formula:
Data Sources (from previous day's close):
Nifty 50 closing price
India VIX closing price
Key Calculations:
A = VIX Close ÷ 16 (converts annualized volatility to daily)
AA = (Nifty Close × A) ÷ 100 (daily expected move in points)
Upside Range = Nifty Close + AA
Downside Range = Nifty Close - AA
Visual Elements:
Green line: Upside resistance level
Red line: Downside support level
Gray line: Previous day's closing price (baseline)
Purple fill: The calculated range zone
Background color: Green when price exceeds upside range, red when below downside range
Information Table (top-right corner):
Displays all calculated values (Nifty close, VIX close, A value, range width, upside/downside levels)
Alerts:
Triggers when Nifty crosses above the upside range or below the downside range
Practical Use
This is a volatility-based range forecast tool. Traders use it to identify:
Expected support/resistance levels for the next trading day
Overbought/oversold conditions (when price trades outside the calculated range)
Volatility-adjusted price targets
The formula (VIX ÷ 16) is the standard method for converting annualized implied volatility into a 1-standard-deviation daily expected move (assuming 252 trading days: √252 ≈ 16).
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.