ThinkScript Indicator: CalmvVolatile

This is a pretty basic stud that compares the current Average True Range (ATR) with a long term average of the ATR.  The default periods are 14 period for the ATR and 500 period for the average.

This indicator can be helpful as a quick reference when taking short term trades.  If the instrument is volatile, you know that there's a better possibility of a quicker and farther move than if it's calm.  Enjoy.  The code is below.


#######Delete this line in TOS#############

input atrlength = 14;

input avglength = 500;

input plotlower = {default "yes", "no"};

def vol = AverageTrueRange(atrlength);

def avgvol = Average(vol, avglength);

def calm = vol < avgvol - (avgvol * .1);

def neutral = avgvol + (avgvol * .1) > vol > avgvol - (avgvol * .1);

def Volatile = vol > avgvol + (avgvol * .1);

AddLabel(yes, Concat("Market is Currently ", (if calm then "Calm" else if neutral then "Neutral" else if Volatile then "Volatile" else "Neutral")),  if calm then Color.GREEN else if neutral then Color.BLUE else if Volatile then Color.RED  else Color.GRAY);

declare lower;

plot window =  vol - avgvol;

window.SetPaintingStrategy(PaintingStrategy.HISTOGRAM);

window.AssignValueColor(if Volatile then Color.RED else if calm then Color.GREEN else if neutral then Color.BLUE else Color.GRAY);

plot zeroline = 0;

######delete this line in TOS##############

Trade Opportunity: TripAdvisor

TripAdvisor (TRIP) has taken it on the chin lately and there might be some good short trade opportunities for those that are nimble. Trip is very oversold right now and will likely bounce a little which will provide a potential trade with a decent risk to reward opportunity.  I'd look for a bounce up to the $80-82 range and I'd place a stop at $87.  After the trade is on, I'd set a profit target to sell half at $69 and trail a stop down to the ultimate target of $60 and change (i.e. $60.30).  Check out the chart below.

I am going to start posting at least once a week on this site again.  I'll do random trade ideas when I see them and then some general market update.

Have a great day.

TLT