⛈️ Calm-Storm Volatility Gauge
Is the market calm, normal or stormy right now?
Raw volatility numbers like ATR are hard to interpret because they depend on each asset's price. The Calm-Storm Gauge converts ATR into a percent of price and then compares today's reading with the lowest and highest readings of the last 100 bars. The result is a 0-100 dial where low readings mean unusually calm conditions and high readings mean unusually stormy ones.
Running live on a simulated market ·
The exact formula
atrPct = 100 * ATR(14) / close
lo = LOWEST(atrPct, 100)
hi = HIGHEST(atrPct, 100)
d = hi - lo
IF d == 0 THEN gauge = 50
ELSE gauge = 100 * (atrPct - lo) / d
OUTPUT gauge // 0 = calmest of last 100 bars, 100 = stormiest
How to read it
- Below 20: calm seas, volatility near its recent lows; quiet periods often come before bigger moves.
- 20 to 70: normal weather for this asset.
- Above 80: stormy, volatility near its recent highs; consider smaller position sizes.
- A sharp jump from calm to stormy often coincides with a breakout or sell-off.
Why it might help
It puts volatility into context so traders can adjust position size and stop distance to current conditions. Comparing calm and stormy phases can also help time when to be more or less active.
Limitations
- Says nothing about direction.
- The 100-bar window can be dominated by one extreme event.
- Needs at least about 115 bars of history before readings are meaningful.
Educational only – not financial advice. This page explains ideas and reports the news. It is not a recommendation to buy, sell or hold anything. Markets go up and down and you can lose money. Do your own research and consider talking to a licensed adviser.