playing with volatility and price Range charting

[antwerks]

@useThinkScript @merryDay @BenTen @rad14733

FOR REVIEW ONLY!!!! Need feedback. Looks busy and may not be worthy.

https://tos.mx/!UbqLy64V

Entire chart with all scripts: https://tos.mx/!TbtS20wV

Thought if we stack them on the same chart it might show SBV Flow which tells you directional conviction (who’s in control — buyers or sellers).
Use R-Range Volatility which tells you how strong or weak the environment is (when moves are likely to explode or fade).
When SBV is bullish and R-Range expanding, you have trend + energy confirmation (excellent trade condition).
When SBV is flat but R-Range contracting, the market is coiling — potential setup zone before next move.

1. Core Concept Comparison

Feature	R-Range Script (yours)	SBV Flow Trading System
Primary Input	Price range (high–low) and Volume range	SBV = (close – close[1]) × volume
What It Measures	Expansion/contraction in price and volume relative to their moving averages	Cumulative buying/selling pressure weighted by volatility
Analogy	R-chart from statistical process control	Volume-weighted MACD
Goal	Identify periods of increasing/decreasing volatility and participation	Identify trend direction and strength through smoothed money flow
Normalization	Divides by average range to make it scale-free	Adapts smoothing speed dynamically using ATR% (adaptive EMA factor)

️ 2. Mathematical Engine

Component	R-Range Script	SBV Flow Trading System
Short-term line	Exponential average of normalized range (fast reaction)	EMA (adaptive) of SBV (fastLine)
Long-term line	Longer average baseline	EMA (adaptive) of SBV (slowLine)
Histogram	Difference between fast & slow normalized ranges (like MACD of volatility)	Difference between fast & slow SBV flows (momentum of buying pressure)
Zero line reference	0 = balance of volatility expansion	0 = balance of buying vs. selling volume

3. Output Interpretation

Observation	R-Range Script Meaning	SBV Flow System Meaning
Fast > Slow	Short-term volatility expanding (momentum surge, active breakout)	Bullish flow (buy pressure dominant)
Fast < Slow	Volatility contracting (compression, potential reversal setup)	Bearish flow (sell pressure dominant)
Histogram positive	Market active or “in motion”	Buying pressure accelerating
Histogram negative	Market quieting down	Selling pressure accelerating

4. Behavioral Focus

Focus Area	R-Range Script	SBV Flow Trading System
Emphasis	Market energy (volatility cycles)	Market directional flow (money movement)
Best Use Case	Detecting upcoming breakouts or regime changes	Entry/exit timing for trend continuation or reversal
Sensitive To	Candle size + volume variation	Net directional volume (up vs. down pressure)
Timeframe Use	Works across daily/intraday as volatility meter	Works best intraday or swing as trade flow indicator

5. Labeling & Visualization

Element	R-Range Script	SBV Flow Trading System
Labels	Show expanding / contracting price or volume ranges	Show volatility regime (ATR%) and adaptive factor
Colors	Green/red for expansion vs. contraction	Cyan/yellow for fast/slow; green/red for flow bias
Histogram meaning	Volatility momentum	Money flow momentum

7. Technical Summary

Parameter	R-Range	SBV Flow
Formula base	Range/average(range)	(close-close[1]) × volume
Adapts by	Range normalization	ATR% adaptive EMA
Tracks	Volatility cycles	Volume pressure trend
Key signal	Expansion → contraction cycle	Fast/slow crossover
Nature	Mean-reverting	Trend-following

Short story is the R-Range script would show/describe Volatility & energy monitor and the SBV Flow script would show/describe Directional volume & trend indicator

Together, they form a —two-dimensional trading framework where one shows how strong the market is moving, and the other shows where it’s moving.

 

[rad14733]

I will be monitoring the Chart this coming week...

 

[merryDay]

@antwerks
Always impressed by the ideas you bring to trading — thank you for sharing this setup!

Your focus on volume and price, with attention to movement and trend confirmation, is solid. You’ve clearly put a lot of thought into momentum and structure. One idea you might explore is what you’d like to use as your third component. Since your setup already leans toward tracking institutional activity, a money flow indicator could provide strong confirmation.

A quick note on application — your identified patterns work best at key levels. You might consider a first pass that checks whether price is near support or resistance and evaluates the reward-to-risk before applying indicators.

Once you’ve confirmed those levels, it can help to verify your catalyst — news or events, overall market momentum, or visible institutional interest and volume.

It’s true that many traders dismiss key levels after seeing price break through them. But lately, there’s growing recognition that when multiple key levels align — say a pivot point lining up with a prior day’s level and the 50/200-day or VWAP — it often signals genuinely strong support or resistance.


Swing Trading
There are many styles of swing trading, so your setup could definitely find a role there. That said, because volume, volatility, and momentum tend to fluctuate over the course of a swing trade, they’re usually secondary rather than primary analytical tools.

The most common swing approach focuses on identifying dips and corrections from key levels on higher timeframes — and confirming the retracements consistently produce higher highs and higher lows. High-growth instruments showing these patterns (especially in cyclical sectors during bull markets) tend to be top candidates. September was practically a textbook example of this.

That said, one of your real strengths is thinking outside that textbook. I’m confident your setup can have value for both day and swing traders — and given your use of low-lag indicators, even scalpers could find an edge in it.


Another excellent contribution

 

[antwerks]

@antwerks
Always impressed by the ideas you bring to trading — thank you for sharing this setup!

Your focus on volume and price, with attention to movement and trend confirmation, is solid. You’ve clearly put a lot of thought into momentum and structure. One idea you might explore is what you’d like to use as your third component. Since your setup already leans toward tracking institutional activity, a money flow indicator could provide strong confirmation.

A quick note on application — your identified patterns work best at key levels. You might consider a first pass that checks whether price is near support or resistance and evaluates the reward-to-risk before applying indicators.

Once you’ve confirmed those levels, it can help to verify your catalyst — news or events, overall market momentum, or visible institutional interest and volume.

It’s true that many traders dismiss key levels after seeing price break through them. But lately, there’s growing recognition that when multiple key levels align — say a pivot point lining up with a prior day’s level and the 50/200-day or VWAP — it often signals genuinely strong support or resistance.


Swing Trading
There are many styles of swing trading, so your setup could definitely find a role there. That said, because volume, volatility, and momentum tend to fluctuate over the course of a swing trade, they’re usually secondary rather than primary analytical tools.

The most common swing approach focuses on identifying dips and corrections from key levels on higher timeframes — and confirming that those levels consistently produce higher highs and higher lows. High-growth instruments showing these patterns (especially in cyclical sectors during bull markets) tend to be top candidates. September was practically a textbook example of this.

That said, one of your real strengths is thinking outside that textbook. I’m confident your setup can have value for both day and swing traders — and given your use of low-lag indicators, even scalpers could find an edge in it.


Another excellent contribution

"A quick note on application — your identified patterns work best at key levels. You might consider a first pass that checks whether price is near support or resistance and evaluates the reward-to-risk before applying indicators." yes it looks that the cross overs align with support and resistance zones - need to somehow incorporate that into the signals ...ummmm

 

[antwerks]

Going with @merryDay ideas and not cluttering up th echart I added labels and coloring candles that include Setup Forming label that signals Trend starting, volume rising with Yellow candles. Signal Approaching label that signals a Trend strengthening, volume surging, MFI improving with Orange candles. Confirmed Buy label signaling all aligned (trend, volume, money flow) with Green candles, Confirmed Sell label signaling all aligned bearishly with Red candles and Neutral/No signal with Gray candles. (LOOKS TO BE BETTER ON SHORTER TIME FRAMES)

https://tos.mx/!TqvPdPfv