OPEN-SOURCE SCRIPT
COTE Volatility
COTE Volatility
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1. WHAT THIS INDICATOR DOES
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COTE Volatility is a price-based volatility indicator designed to detect abnormal price expansion using ATR (Average True Range).
Its main purpose:
→ Identify **volatility spikes**
→ Highlight **explosive candles (expansion bars)**
→ Separate bullish and bearish momentum bursts
It answers:
→ “Is this move normal or abnormal?”
→ “Is this candle driven by strong participation?”
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
2. CORE LOGIC / UNIQUE EDGE
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
This is NOT just an ATR indicator.
It simplifies volatility into a **clear decision signal**:
━━━━━━━━━━
1) ATR-Based Dynamic Threshold
━━━━━━━━━━
Instead of fixed thresholds:
→ Uses ATR (market volatility baseline)
→ Adapts automatically to market conditions
Formula:
ATR × Multiplier = volatility threshold
---
━━━━━━━━━━
2) Expansion Detection (Core Mechanism)
━━━━━━━━━━
Measures candle size:
candleRange = high - low
Then compares:
candleRange > ATR × multiplier
If TRUE:
→ This is a **volatility spike**
Meaning:
→ Market moved more than expected
---
━━━━━━━━━━
3) Directional Filtering
━━━━━━━━━━
Not all spikes are equal.
The indicator separates:
• Bullish Spike → close > open
• Bearish Spike → close < open
This gives:
→ Direction + strength in one signal
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
3. HOW IT WORKS
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
STEP 1 — Calculate ATR
→ Measures average volatility
STEP 2 — Measure Candle Range
→ high - low
STEP 3 — Compare with Threshold
If:
candleRange > ATR × multiplier
→ Volatility Spike detected
STEP 4 — Classify Direction
• Close > Open → Bullish Spike
• Close < Open → Bearish Spike
STEP 5 — Plot Signals
• Green triangle → Bullish expansion
• Red triangle → Bearish expansion
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
4. HOW TO USE
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
━━━━━━━━━━
1) Breakout Confirmation
━━━━━━━━━━
Large spike after consolidation:
→ Confirms breakout strength
→ Not a fake move
---
━━━━━━━━━━
2) Momentum Entry
━━━━━━━━━━
Bullish spike:
→ Strong buying pressure
Bearish spike:
→ Strong selling pressure
Best used with:
→ Trend direction
→ Support / resistance
---
━━━━━━━━━━
3) Trap Detection
━━━━━━━━━━
Spike against higher timeframe trend:
→ Possible trap / fake move
Example:
→ Bear spike in strong uptrend → absorption
---
━━━━━━━━━━
4) Volatility Regime Shift
━━━━━━━━━━
Clusters of spikes:
→ Market transitioning from low → high volatility
Important for:
→ Timing expansion phases
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
5. SETTINGS GUIDE
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
atrLength
→ ATR sensitivity
Low → reacts faster
High → smoother, slower
multiplier
→ Spike threshold
Low (1.5–2.0) → more signals
High (2.5–3.0) → only extreme moves
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
6. IMPORTANT NOTES
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
• This indicator does NOT predict direction
→ Only shows volatility expansion
• A spike ≠ automatic entry
→ Must be combined with context
• Works best with:
→ Trend
→ Liquidity zones
→ Volume analysis
• In low volatility markets:
→ Signals will be rare
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
🎯 KEY INSIGHT
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
This indicator is designed to detect:
→ Abnormal price expansion
→ Institutional activity moments
→ High-impact candles
Not just volatility — but **meaningful volatility**
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
1. WHAT THIS INDICATOR DOES
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
COTE Volatility is a price-based volatility indicator designed to detect abnormal price expansion using ATR (Average True Range).
Its main purpose:
→ Identify **volatility spikes**
→ Highlight **explosive candles (expansion bars)**
→ Separate bullish and bearish momentum bursts
It answers:
→ “Is this move normal or abnormal?”
→ “Is this candle driven by strong participation?”
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
2. CORE LOGIC / UNIQUE EDGE
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
This is NOT just an ATR indicator.
It simplifies volatility into a **clear decision signal**:
━━━━━━━━━━
1) ATR-Based Dynamic Threshold
━━━━━━━━━━
Instead of fixed thresholds:
→ Uses ATR (market volatility baseline)
→ Adapts automatically to market conditions
Formula:
ATR × Multiplier = volatility threshold
---
━━━━━━━━━━
2) Expansion Detection (Core Mechanism)
━━━━━━━━━━
Measures candle size:
candleRange = high - low
Then compares:
candleRange > ATR × multiplier
If TRUE:
→ This is a **volatility spike**
Meaning:
→ Market moved more than expected
---
━━━━━━━━━━
3) Directional Filtering
━━━━━━━━━━
Not all spikes are equal.
The indicator separates:
• Bullish Spike → close > open
• Bearish Spike → close < open
This gives:
→ Direction + strength in one signal
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
3. HOW IT WORKS
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
STEP 1 — Calculate ATR
→ Measures average volatility
STEP 2 — Measure Candle Range
→ high - low
STEP 3 — Compare with Threshold
If:
candleRange > ATR × multiplier
→ Volatility Spike detected
STEP 4 — Classify Direction
• Close > Open → Bullish Spike
• Close < Open → Bearish Spike
STEP 5 — Plot Signals
• Green triangle → Bullish expansion
• Red triangle → Bearish expansion
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
4. HOW TO USE
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
━━━━━━━━━━
1) Breakout Confirmation
━━━━━━━━━━
Large spike after consolidation:
→ Confirms breakout strength
→ Not a fake move
---
━━━━━━━━━━
2) Momentum Entry
━━━━━━━━━━
Bullish spike:
→ Strong buying pressure
Bearish spike:
→ Strong selling pressure
Best used with:
→ Trend direction
→ Support / resistance
---
━━━━━━━━━━
3) Trap Detection
━━━━━━━━━━
Spike against higher timeframe trend:
→ Possible trap / fake move
Example:
→ Bear spike in strong uptrend → absorption
---
━━━━━━━━━━
4) Volatility Regime Shift
━━━━━━━━━━
Clusters of spikes:
→ Market transitioning from low → high volatility
Important for:
→ Timing expansion phases
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
5. SETTINGS GUIDE
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
atrLength
→ ATR sensitivity
Low → reacts faster
High → smoother, slower
multiplier
→ Spike threshold
Low (1.5–2.0) → more signals
High (2.5–3.0) → only extreme moves
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
6. IMPORTANT NOTES
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
• This indicator does NOT predict direction
→ Only shows volatility expansion
• A spike ≠ automatic entry
→ Must be combined with context
• Works best with:
→ Trend
→ Liquidity zones
→ Volume analysis
• In low volatility markets:
→ Signals will be rare
---
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
🎯 KEY INSIGHT
━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━
This indicator is designed to detect:
→ Abnormal price expansion
→ Institutional activity moments
→ High-impact candles
Not just volatility — but **meaningful volatility**
Mã nguồn mở
Theo đúng tinh thần TradingView, tác giả của tập lệnh này đã công bố nó dưới dạng mã nguồn mở, để các nhà giao dịch có thể xem xét và xác minh chức năng. Chúc mừng tác giả! Mặc dù bạn có thể sử dụng miễn phí, hãy nhớ rằng việc công bố lại mã phải tuân theo Nội quy.
Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.
Mã nguồn mở
Theo đúng tinh thần TradingView, tác giả của tập lệnh này đã công bố nó dưới dạng mã nguồn mở, để các nhà giao dịch có thể xem xét và xác minh chức năng. Chúc mừng tác giả! Mặc dù bạn có thể sử dụng miễn phí, hãy nhớ rằng việc công bố lại mã phải tuân theo Nội quy.
Thông báo miễn trừ trách nhiệm
Thông tin và các ấn phẩm này không nhằm mục đích, và không cấu thành, lời khuyên hoặc khuyến nghị về tài chính, đầu tư, giao dịch hay các loại khác do TradingView cung cấp hoặc xác nhận. Đọc thêm tại Điều khoản Sử dụng.