OPEN-SOURCE SCRIPT
Candle Body Volatility Histogram
This is a statistical analysis tool for TradingView designed to visualize the volatility of candle bodies. Unlike standard indicators that focus on price levels, this one measures the "thickness" of the candle ($|Open - Close|$) and determines how significant a move is compared to recent history.Here is the overview of the Candle Body Volatility Histogram:1. Core Logic: Statistical Body AnalysisThe script applies the concept of Standard Deviation (Sigma)—commonly used in Bollinger Bands—directly to the size of the candle bodies.Body Size ($|Open - Close|$): It ignores the wicks and calculates the pure strength of the close.Average Body (SMA): The yellow line represents the "normal" size of a candle over the lookback period (default: 20).Sigma Levels (1σ, 2σ, 3σ): These lines act as thresholds to identify statistically unusual price action.2. Visual ComponentsThe indicator appears in a separate sub-window with the following elements:ElementDescriptionHistogram (Bars)Color-coded based on the candle type: Lime for Bullish, Red for Bearish.Yellow LineThe Average Body Size. If bars are below this, the market is quiet.Sigma 1, 2, 3 LinesBlue-toned lines showing increasing levels of volatility.Blue Background FillHighlights the area between Sigma 2 and Sigma 3, marking the "Extreme Volatility Zone."
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.