Bionic -- Expected Weekly Levels (Public)

How it works

The script calculates expected weekly levels by using the previous Friday's closing price as a baseline and incorporating implied volatility and time to expiration. It generates multiple price levels based on standard deviation calculations, specifically creating two sets of high and low levels: first levels at one standard deviation and second levels at two standard deviations from the previous Friday's close.

Additionally, the script introduces half levels that are positioned at half a standard deviation, providing traders with intermediate points of interest. These half levels have a 34% probability and offer more granular insights into potential price movements throughout the trading week.

Why it may be useful

These weekly expected levels provide traders with a structured framework for understanding potential price ranges and market volatility. By utilizing standard deviation calculations and implied volatility, the indicator offers a probabilistic view of potential price movements, helping traders make more informed decisions about entry, exit, and risk management.

The multi-level approach allows traders to have a nuanced view of potential support and resistance zones, giving them flexibility in interpreting market dynamics. The configurable nature of the lines and labels further enhances its utility, allowing traders to customize the indicator to their specific trading style and preferences.

When to explore it

This indicator is most effective in markets with predictable weekly patterns and consistent volatility, such as index and liquid stock trading. It works best when implied volatility is relatively stable and when traders are looking for structured price expectation frameworks. The levels can be particularly useful for options traders, day traders, and swing traders seeking to understand potential price ranges.

Traders should use this indicator in conjunction with other technical and fundamental analysis tools to validate potential trade setups. It is especially valuable during periods of known market events, earnings releases, or economic announcements that might impact price movements and volatility.

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