Volatility
Volatility is measured via a hybrid standard deviation logic. First, the standard deviation of closing prices over 10 bars is scaled by a factor, then normalized against its own 20-bar rolling standard deviation. The result is converted into a 0–100 index, producing three regimes:
❄️ Calm (<50): low dispersion, mean-reversion conditions dominate.
⚠️ Elevated (50–70): directional expansion likely, watch for breakout tension
💥 Explosive (>70): strong dispersion, trend-following setups favored.
• Uses layered smoothing to dampen noise. • Normalization ensures comparability across different assets. • Acts as a meta-filter for selecting strategy type (range vs. momentum).
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