OPEN-SOURCE SCRIPT
Williams VIX For Bottoms [DCD]
Williams VIX Original - Authentic Volatility Fear Gauge
What This Indicator Does
The Williams VIX Fix measures market fear by calculating how far current lows deviate from recent highs, identifying potential market bottoms during high volatility periods. This implementation provides Larry Williams' original formula in its purest form.
How It Works
Core Formula:
The calculation process:
Signal Generation
Green Flash Signals trigger when either condition is met:
This dual-condition approach reduces false signals while capturing genuine volatility spikes.
What Makes This Original
How to Use
Primary Purpose: Spot high-probability reversal zones during market fear climaxes
Signal Interpretation:
Optimal Settings:
Key Parameters:
The VIX Fix excels at identifying market fear climaxes that coincide with significant price bottoms, making it valuable for swing traders seeking high-probability entries during market stress.
What This Indicator Does
The Williams VIX Fix measures market fear by calculating how far current lows deviate from recent highs, identifying potential market bottoms during high volatility periods. This implementation provides Larry Williams' original formula in its purest form.
How It Works
Core Formula:
VIX Fix = ((Highest High over 22 periods - Current Low) / Highest High over 22 periods) × 100
The calculation process:
- Measures Relative Distance: Compares current low to highest high over lookback period
- Converts to Percentage: Normalizes values for cross-market comparison
- Applies Statistical Analysis: Uses Bollinger Bands (2 std dev) around VIX Fix values
- Filters with Percentiles: 85th percentile threshold removes noise
Signal Generation
Green Flash Signals trigger when either condition is met:
- VIX Fix exceeds upper Bollinger Band (2 standard deviations above 20-period MA)
- VIX Fix exceeds Range High (85th percentile of recent values)
This dual-condition approach reduces false signals while capturing genuine volatility spikes.
What Makes This Original
- Pure Formula Implementation: Uses Williams' exact original calculation without modifications
- Dual Confirmation System: Combines Bollinger Bands with percentile analysis
- Professional Visualization: Histogram display, background highlighting, and live value table
- Comprehensive Alerts: Signal start/end notifications plus Green Flash alerts
How to Use
Primary Purpose: Spot high-probability reversal zones during market fear climaxes
Signal Interpretation:
- Green triangle + background highlight = High volatility reversal zone
- Higher VIX Fix values = Stronger fear/better reversal potential
- Use with price action confirmation for best results
Optimal Settings:
- Timeframes: 4H, Daily, Weekly
- Markets: All (stocks, crypto, forex, commodities)
- Combine with support levels and candlestick patterns
Key Parameters:
- VIX Fix Length (22): Lookback period for highest high
- Std Dev Multiplier (2.0): Bollinger Band sensitivity
- Percentile High (0.85): Only top 15% of readings trigger signals
The VIX Fix excels at identifying market fear climaxes that coincide with significant price bottoms, making it valuable for swing traders seeking high-probability entries during market stress.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.