Volatility Breaker Blocks [BigBeluga]

27. Sept.

The Volatility Breaker Blocks indicator identifies key market levels based on significant volatility at pivot highs and lows. It plots blocks that act as potential support and resistance zones, marked in green (support) and blue (resistance). Even after a breakout, these blocks leave behind shadow boxes that continue to impact price action. The sensitivity of block detection can be adjusted in the settings, allowing traders to customize the identification of volatility breakouts. The blocks print triangle labels (up or down) after breakouts, indicating potential areas of interest.


🔵 IDEA

The Volatility Breaker Blocks indicator is designed to highlight key areas in the market where volatility has created significant price action. These blocks, created at pivot highs and lows with increased volatility, act as potential support and resistance levels.
The idea is that even after price breaks through these blocks, the remaining shadow boxes continue to influence price movements. By focusing on volatility-driven pivot points, traders can better anticipate how price may react when it revisits these areas. The indicator also captures the natural tendency for price to retest broken resistance or support levels.



🔵 KEY FEATURES & USAGE

◉ High Volatility Breaker Blocks:
The indicator identifies areas of high volatility at pivot highs and lows, plotting blocks that represent these zones. Green blocks represent support zones (identified at pivot lows), while blue blocks represent resistance zones (identified at pivot highs).

Support:

Resistance:


◉ Shadow Blocks after Breakouts:
When price breaks through a block, the block doesn't disappear. Instead, it leaves behind a shadow box, which can still influence future price action. These shadow blocks act as secondary support or resistance levels.
If the price crosses these shadow blocks, the block stops extending, and the right edge of the box is fixed at the point where the price crosses it. This feature helps traders monitor important price levels even after the initial breakout has occurred.


◉ Triangle Labels for Breakouts:
After the price breaks through a volatility block, the indicator prints triangle labels (up or down) at the breakout points.



◉ Support and Resistance Retests:
One of the key concepts in this indicator is the retesting of broken blocks. After breaking a resistance block, price often returns to the shadow box, which then acts as support. Similarly, after breaking a support block, price tends to return to the shadow box, which becomes a resistance level. This concept of price retesting and bouncing off these levels is essential for understanding how the indicator can be used to identify potential entries and exits.

The natural tendency of price to retest broken resistance or support levels.




Additionaly indicator can display retest signals of broken support or resistance



◉ Customizable Sensitivity:
The sensitivity of volatility detection can be adjusted in the settings. A higher sensitivity captures fewer but more significant breakouts, while a lower sensitivity captures more frequent volatility breakouts. This flexibility allows traders to adapt the indicator to different trading styles and market conditions.



🔵 CUSTOMIZATION

• Calculation Window: Defines the window of bars over which the breaker blocks are calculated. A larger window will capture longer-term levels, while a smaller window focuses on more recent volatility areas.
  
• Volatility Sensitivity: Adjusts the threshold for volatility detection. Lower sensitivity captures smaller breakouts, while higher sensitivity focuses on larger, more significant moves.
  
• Retest Signals: Display or hide retest signals of shadow boxes
  

28. Sept.

Versionshinweise

- Added extend boxes right feature