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Normalized Coefficient of Variation
# Normalized Coefficient of Variation (CV)
This indicator measures market volatility using the **Coefficient of Variation (CV)**, defined as the ratio of the standard deviation to the simple moving average (SMA), expressed as a percentage.
Unlike the traditional CV, which has no upper limit and can vary significantly across different assets and market conditions, this indicator applies a **Rolling Min-Max Normalization** over a user-defined lookback period. The result is a dynamic oscillator scaled between **0 and 100**, making it easier to compare relative volatility across different symbols and timeframes.
## Formula
**Coefficient of Variation**
CV = (Standard Deviation / SMA) × 100
**Normalization**
Normalized CV = 100 × (CV − Lowest CV) / (Highest CV − Lowest CV)
where the lowest and highest CV values are calculated over the selected normalization lookback period.
## Features
* Rolling Min-Max normalization (0-100 scale)
* User-selectable calculation timeframe
* Adjustable CV period (default: 24)
* Adjustable normalization lookback (default: 250)
* Uses Simple Moving Average (SMA)
* White oscillator line for clear visualization
* Dotted reference levels at 10 and 30
* Hidden raw CV value available in the Data Window
## Interpretation
* Values below **10** indicate relatively low volatility compared to recent history.
* Values above **30** indicate relatively high volatility compared to recent history.
* Values approaching **100** represent the highest relative volatility observed within the selected normalization window.
* Values approaching **0** represent the lowest relative volatility observed within the selected normalization window.
Because the indicator is normalized, the displayed values represent **relative volatility within the selected lookback period**, not the absolute Coefficient of Variation percentage. This makes the indicator especially useful for comparing changing volatility regimes across different markets and timeframes.
This indicator is intended as a volatility analysis tool and should be used alongside price action and other technical indicators rather than as a standalone trading signal.
This indicator measures market volatility using the **Coefficient of Variation (CV)**, defined as the ratio of the standard deviation to the simple moving average (SMA), expressed as a percentage.
Unlike the traditional CV, which has no upper limit and can vary significantly across different assets and market conditions, this indicator applies a **Rolling Min-Max Normalization** over a user-defined lookback period. The result is a dynamic oscillator scaled between **0 and 100**, making it easier to compare relative volatility across different symbols and timeframes.
## Formula
**Coefficient of Variation**
CV = (Standard Deviation / SMA) × 100
**Normalization**
Normalized CV = 100 × (CV − Lowest CV) / (Highest CV − Lowest CV)
where the lowest and highest CV values are calculated over the selected normalization lookback period.
## Features
* Rolling Min-Max normalization (0-100 scale)
* User-selectable calculation timeframe
* Adjustable CV period (default: 24)
* Adjustable normalization lookback (default: 250)
* Uses Simple Moving Average (SMA)
* White oscillator line for clear visualization
* Dotted reference levels at 10 and 30
* Hidden raw CV value available in the Data Window
## Interpretation
* Values below **10** indicate relatively low volatility compared to recent history.
* Values above **30** indicate relatively high volatility compared to recent history.
* Values approaching **100** represent the highest relative volatility observed within the selected normalization window.
* Values approaching **0** represent the lowest relative volatility observed within the selected normalization window.
Because the indicator is normalized, the displayed values represent **relative volatility within the selected lookback period**, not the absolute Coefficient of Variation percentage. This makes the indicator especially useful for comparing changing volatility regimes across different markets and timeframes.
This indicator is intended as a volatility analysis tool and should be used alongside price action and other technical indicators rather than as a standalone trading signal.
오픈 소스 스크립트
트레이딩뷰의 진정한 정신에 따라, 이 스크립트의 작성자는 이를 오픈소스로 공개하여 트레이더들이 기능을 검토하고 검증할 수 있도록 했습니다. 작성자에게 찬사를 보냅니다! 이 코드는 무료로 사용할 수 있지만, 코드를 재게시하는 경우 하우스 룰이 적용된다는 점을 기억하세요.
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.
오픈 소스 스크립트
트레이딩뷰의 진정한 정신에 따라, 이 스크립트의 작성자는 이를 오픈소스로 공개하여 트레이더들이 기능을 검토하고 검증할 수 있도록 했습니다. 작성자에게 찬사를 보냅니다! 이 코드는 무료로 사용할 수 있지만, 코드를 재게시하는 경우 하우스 룰이 적용된다는 점을 기억하세요.
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.