🔥 Headline Heat Index
When attention and price reaction both run hot.
Big news usually shows up as unusual trading activity and an unusual price move on the same bar. Because only price data is available here, the Headline Heat Index uses relative volume as a stand-in for attention and the bar's move measured in ATRs as the price reaction. Multiplying the two and squashing the result into 0-100 highlights bars where both are running hot at once.
Running live on a simulated market ·
The exact formula
avgVol = SMA(volume, 20)
IF avgVol == 0 THEN attention = 1 ELSE attention = volume / avgVol
a = ATR(14)
IF a == 0 THEN impact = 0 ELSE impact = ABS(close - close[1]) / a
heatRaw = attention * impact
heat = 100 * heatRaw / (heatRaw + 1)
OUTPUT EMA(heat, 3) // 0-100 score
How to read it
- Around 50: attention times reaction is about normal (product near 1).
- Above 75: unusually heavy trading paired with an unusually large move, a likely news-driven bar.
- Below 25: quiet trading and small moves.
- A hot reading after a long calm stretch often marks the start of a new chapter for that asset.
Why it might help
It flags sessions where something significant may have happened so readers can go and check the news. On a news site it could be paired with actual headline counts if that data is available.
Limitations
- Volume is only a rough proxy for news attention.
- Does not show whether the move was up or down.
- Scheduled events like index rebalances can create heat without real news.
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.