QVS Pro™ - Raw Volatility Edition

QVS Pro - Raw Volatility Edition

A Professional Volatility Analysis Tool for Active Traders

What This Indicator Does

QVS Pro (Quantitative Volatility Score) is an advanced volatility measurement system that helps you understand market conditions beyond simple high or low volatility readings. It analyzes the quality and structure of volatility to identify the best trading opportunities.

Think of it as a weather forecast for the markets. It does not just tell you if there is a storm coming, it tells you what type of storm, how severe it will be, and whether conditions are right for your trading strategy.

Why the Raw Edition

This version removes all smoothing and lagging to give you real-time, unfiltered volatility readings. When volatility spikes, you see it immediately with no 3-5 bar delay like traditional indicators. This is critical for day traders and scalpers who need to react fast to changing market conditions.

Key Features

1. Multi-Dimensional Volatility Analysis

Instead of relying on one ATR calculation, QVS Pro combines multiple proven volatility estimators:

- Garman-Klass Estimator - Captures intraday price action more accurately than standard range calculations
- Yang-Zhang Estimator - Accounts for overnight gaps and opening price jumps
- Parkinson Estimator - Uses high/low range analysis for cleaner volatility signals
- Volume-Weighted True Range - Integrates volume data to identify real volatility vs noise
- Volatility of Volatility - Measures how stable or erratic volatility itself is
- Term Structure Analysis - Compares short-term vs long-term volatility trends

All of these are combined into a single composite score that is normalized and easy to read.

2. Intelligent Regime Detection

The indicator automatically classifies market conditions into five distinct regimes:

- DORMANT - Extremely low volatility, markets are asleep
- LOW - Below average volatility, good for option selling strategies
- NORMAL - Average volatility, standard trading conditions
- HIGH - Above average volatility, risk management becomes critical
- EXTREME - Dangerous volatility levels, position sizing should be reduced

These regime classifications adapt to the specific asset you are trading, so what is extreme for bonds might be normal for crypto.

3. NQ Optimization Mode

Special optimizations designed specifically for trading NASDAQ futures (NQ):

- Session Weighting - Automatically adjusts for RTH (Regular Trading Hours) vs Globex sessions
- Gap Adjustment - Compensates for overnight gaps that can distort volatility readings
- Time-of-Day Awareness - Recognizes that 10am volatility is different from 2pm volatility

Even if you do not trade NQ, these optimizations work well for ES, YM, and other index futures.

4. Entry Quality Score (0-100)

This is where QVS Pro really shines. It generates a numerical score from 0 to 100 that tells you how favorable current conditions are for entering new positions. The score considers:

- Current volatility regime (lower is better for entries)
- VIX premium or discount (is implied volatility cheap or expensive)
- Term structure (is volatility rising or falling)
- Bollinger Band squeeze conditions (coiled spring effect)
- Volume confirmation (is the move legitimate)

A score of 70+ means conditions are excellent for new trades. A score below 40 means you should probably wait or reduce position size.

5. Live VIX Integration

If you are trading equities or index futures, QVS Pro automatically pulls live VIX and VXN data to show you:

- Whether implied volatility is trading at a premium or discount to realized volatility
- Connection status (so you know if the data feed is working)
- Real-time VIX levels displayed in the status table

This helps you identify mispricings between options markets and underlying volatility.

6. Visual Heat Map

The bottom section shows a stacked heat map breaking down each component of the volatility calculation. This lets you see at a glance:

- Which volatility measures are elevated (red/orange zones)
- Which are compressed (blue/green zones)
- Whether volatility is broadly elevated or just one component is spiking

The heat map updates in real-time with zero lag.

7. Comprehensive Status Table

The top-right table shows you everything you need at a glance:

- ATR Engine Mode (Standard or Advanced with NQ optimization)
- Current Session (RTH or Globex for futures traders)
- VIX Connection Status and current levels
- Current Volatility Regime and percentile rank
- Entry Quality Score with rating (HIGH/MED/LOW)
- Volatility Trend (UP/DOWN/FLAT)
- Confirmation that you are seeing RAW unsmoothed data

Who Should Use This Indicator

QVS Pro is designed for:

- Day traders and scalpers who need instant volatility feedback
- Options traders who want to time entries when volatility is compressed
- Futures traders (especially NQ, ES, YM) who need session-aware analysis
- Swing traders looking to avoid entering during high volatility periods
- Risk managers who need quantifiable volatility metrics

How to Use It

For Entry Timing:
Look for Entry Score above 70 combined with LOW or DORMANT regime. This is your green light for new positions.

For Risk Management:
When regime jumps to HIGH or EXTREME, tighten stops and reduce position size immediately.

For Options Strategies:
Use the VIX ratio to identify when implied volatility is cheap (ratio under 0.8) for buying options, or expensive (ratio above 1.2) for selling premium.

For Volatility Expansion Plays:
Watch for Bollinger Band squeezes combined with LOW regime. These often precede explosive moves.

Alert Conditions

QVS Pro includes built-in alerts for:

- Volatility expansion from low regimes (catch moves early)
- Extreme volatility warnings (protect your capital)
- High quality entry setups (Score 70+ with low volatility)
- RTH session-specific alerts for futures traders
- Raw volatility spikes (immediate danger signals)

What Makes This Different

Most volatility indicators just show you a line going up or down. QVS Pro gives you context, structure, and actionable scores. It answers the questions that matter:

- Is this normal volatility for this asset or something unusual?
- Should I be entering positions right now or waiting?
- Is volatility likely to expand or contract from here?
- Are options cheap or expensive relative to actual price movement?

The raw edition specifically eliminates the lag that causes you to miss moves or get caught in false breakouts.

Settings You Can Customize

Core Settings:
- Regime Lookback Period (how much history to use for context)
- Show/hide status table and heat map

NQ Optimization:
- Enable/disable NQ-specific adjustments
- Session weighting on/off
- Gap adjustment on/off

Advanced ATR Engine:
- Enable advanced multi-estimator calculations
- Sensitivity adjustment (how reactive to changes)
- Adaptive strength (how much to adjust for market efficiency)
- Volume integration level (how much weight to give volume)

Visual Settings:
- Custom colors for bullish/bearish/neutral regimes
- Background transparency levels

Volatility Parameters:
- Fast, Medium, and Slow ATR periods for multi-timeframe analysis

Final Notes

This indicator does not predict where price is going. It tells you what the market conditions are right now and whether those conditions favor new positions. Use it as part of a complete trading system, not as a standalone entry signal.

The RAW edition prioritizes speed and accuracy over smoothness. You will see more noise, but you will also catch moves that smoothed indicators miss entirely.

Works on all timeframes from 1-minute to daily charts. Tested extensively on NQ, ES, YM futures as well as major stocks and forex pairs.