A volatility indicator tracking drawdown levels from a 22-day high, helping traders visualize price performance and potential market risk through dynamic percentage thresholds.
Explore complementary indicator rolesHow it works
The Williams VIX Fix (WVF) indicator calculates drawdown levels by comparing the current closing price to the highest price over a 22-day period. It computes multiple percentage drawdown thresholds from 2% to 50%, tracking how far the price has fallen from recent highs.
The script uses request.security to fetch daily high prices and dynamically plots these drawdown levels with specific colors. Each level represents a different magnitude of price decline, allowing traders to visually understand the security's recent performance and potential volatility.
Why it may be useful
This indicator provides traders with a comprehensive view of price volatility and potential market risk by displaying multiple drawdown levels. It helps identify significant price movements and potential oversold conditions, enabling more informed trading decisions and risk management strategies.
By visualizing how far prices have fallen from recent highs, traders can quickly assess market sentiment, potential support levels, and the overall health of a security. The dynamic color-coding and labeling make it easy to interpret market conditions at a glance.
When to explore it
The drawdown indicator is most effective during periods of market uncertainty or potential trend reversals. It can be particularly useful when assessing securities that have experienced significant price declines or are showing signs of increased volatility.
Traders can leverage this tool during market corrections, when evaluating potential entry or exit points, and when conducting comprehensive risk assessments. It is especially valuable for traders seeking to understand price performance relative to recent market highs.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
