A trading tool that visualizes potential price movements by plotting expected move boxes based on options' implied volatility across weekly, monthly, and yearly timeframes.
Explore complementary indicator rolesHow it works
The script calculates expected move ranges by analyzing the implied volatility of at-the-money put and call options for specific stocks. It uses a standard one-standard-deviation calculation, which typically represents a 68% probability of price movement within a defined range.
By multiplying the current stock price by the implied volatility percentage, the script generates visual boxes on the price chart that represent potential price movement boundaries. These boxes are updated weekly after market close, providing traders with dynamic and current expected move ranges across different timeframes.
Why it may be useful
Expected move indicators help traders understand potential price volatility and make more informed trading decisions by providing a statistical framework for predicting price ranges. They transform complex options volatility data into easy-to-understand visual representations that can guide risk management and strategy development.
By showing the probable price movement zones, these indicators allow traders to set more precise entry and exit points, manage position sizes, and develop more strategic options trading approaches. The visualization helps traders quickly assess potential market movements without requiring deep options pricing knowledge.
When to explore it
This signal is most effective when trading stocks or ETFs with liquid options markets and consistent trading volumes. It works best for traders who want to understand potential price ranges before making trading decisions, particularly those interested in options strategies or managing directional risk.
Traders should use this tool in conjunction with other technical and fundamental analysis methods, recognizing that the expected move represents a probability-based projection rather than a definitive price prediction. It is particularly useful during periods of known market events, earnings releases, or when assessing potential volatility in specific market sectors.
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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.
