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NixPulse Volatility
NixPulse's volatility gauge expressing ATR as a percentage of price, plotted against its own moving average so traders can spot regime shifts between calm and turbulent markets.
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Live Demo — NixPulse Volatility applied to NIFTY 50 (illustrative)
PriceEMA(9)EMA(21)SMA(20)
What is NixPulse Volatility?
Reframes classic average true range as a percentage of current price, making volatility readings comparable across instruments and price levels. An overlaid moving average of that percentage shows whether current volatility is running hot or cold.
How It Works
The indicator calculates ATR over the length period, divides it by the current close and expresses it as a percentage — the ATR % line. It then computes a moving average of that line over the avg period, plotted as the Average line.
Parameters
| Parameter | Default | Description |
|---|---|---|
| length | 14 | Lookback period for the underlying ATR calculation |
| avg | 20 | Period of the moving average applied to the ATR % line |
Signal Interpretation
- ATR % rising above its Average signals volatility expansion.
- ATR % falling below its Average signals volatility contraction.
- A sustained ATR % well above its long-run Average suggests wider stops and reduced position size.
- ATR % compressing to multi-period lows against its Average can flag an approaching expansion.
- Sharp spikes that quickly revert toward the Average often mark exhaustion.
Tips & Best Practices
- Use ATR % rather than raw ATR when comparing volatility across different-priced instruments.
- Size stops and position size relative to the current ATR % reading.
- Cross-check with NixPulse Smart Bands — band-width expansion should generally align with rising ATR %.