dannyb888

TWD VPV Risk Range

442 views
30
The 'TradingWithDan Volume Price Volatility Risk Range' indicator identifies two risk ranges based on the volatility and volume of the underlying asset. It then uses those to identify when the trend towards the top or bottom of the risk range is potentially reversing and issues a 'long' or 'short' signal.

The larger risk range is identified by the red and green lines is used to visualise the larger context of the price movement so when the top of the smaller risk range approaches the larger risk range line then the upward trending movement is potentially reaching exhaustion and there is a greater risk of downside. The opposite is also true when the bottom of the smaller risk range approaches the lower larger risk range line.

This indicator is designed to be used in a trending market, either up or down and if for example you have identified an asset that is in an uptrend, or an asset you wish to accumulate, you can take partial position entries at the 'buy' signals and take partial profits at the 'sell' signals. You can use it effectively in a none trending market, taking the outright short or long potions, but you will be at risk of a trend developing.

The indicator isn't designed to identify trends, but to identify sell and buy entries that occurs due to the natural Brownian motion of the price action.

It is designed for my style of trading where I do not enter the entirety of my intended position in one go and will take partial profits when there are price movements towards the top of the risk range if I am long and then put more of the position back on towards bottom of the risk range and vice versa if I am short an asset. It is especially useful for managing my long term core positions and finally I use the alerts to trigger automated trading bots for my positions using the signals.

It can be used on a wide range of assets and on all time frames.
Remove from Favorite Scripts Add to Favorite Scripts

Comments

Looks great Dan, requesting permission to try it out. Thank you.
Reply
Looking good Dan, trying it out thx
Reply
Good job Dan, this looks really helpful and accurate
Reply
dannyb888 CryptoKaezar
@CryptoKaezar, Thank you for your kind words my friend :-)
Reply
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features Pricing Refer a friend House Rules Help Center Website & Broker Solutions Widgets Charting Solutions Lightweight Charting Library Blog & News Twitter
Profile Profile Settings Account and Billing Referred friends Coins My Support Tickets Help Center Ideas Published Followers Following Private Messages Chat Sign Out