A trading tool that plots expected price move boxes using implied volatility from options, helping traders visualize potential price ranges for weekly, monthly, and yearly timeframes.
Explore complementary indicator rolesHow it works
The signal calculates expected price moves by analyzing the implied volatility of at-the-money put and call options for a specific stock or ETF. It uses the current stock price and multiplies it by the option's implied volatility to determine a one-standard-deviation range, which represents approximately 68% of potential price outcomes.
The script generates visual boxes on the price chart that represent these expected move ranges for different timeframes: weekly, monthly, and yearly. These boxes are updated each weekend following Friday's market close, providing traders with a dynamic visualization of potential price volatility based on current market expectations.
Why it may be useful
Expected move analysis provides traders with a statistical framework for understanding potential price fluctuations, helping them make more informed trading decisions. By visualizing the likely price range, traders can better assess risk and develop more strategic entry and exit points for their trades.
The signal is particularly valuable because it translates complex options market data into an easily digestible visual format. It helps traders understand market sentiment, implied volatility, and potential price movements without requiring deep technical knowledge of options pricing and statistical probability.
When to explore it
This signal is most effective for swing traders and investors looking to understand potential price ranges over medium to long-term timeframes. It works best in markets with high option liquidity and for symbols that have consistent and reliable options trading volume.
Traders should use this signal when they want to gauge market expectations, set strategic stop-loss and take-profit levels, or assess potential risk in their trading positions. It is particularly useful during periods of market uncertainty or when evaluating potential trades in stocks or ETFs with significant option market activity.
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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.
