Volatility Breakout Indicator - Hawkes Volatility Engine

Limited-time introductory pricing for early adopters - secure your copy now at a reduced rate before the price increases to standard retail pricing once the initial release period ends.

Version 1.0

Future Updates Coming Soon

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What It Does

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This advanced volatility indicator identifies market compression zones and explosive breakout moments using mathematical modeling. It helps traders spot when markets shift from quiet periods to high-activity phases.

Core Technology

Hawkes Process Integration: Uses self-exciting process mathematics to track how volatility builds upon itself, creating a dynamic measure that responds to market behavior patterns.

Normalized ATR Foundation: Measures price range relative to historical volatility, ensuring the indicator adapts to different market conditions and timeframes automatically.

Quantile-Based Thresholds: Calculates statistical boundaries (default 5th and 95th percentiles) from recent data, defining clear low and high volatility zones without arbitrary fixed levels.

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Key Features

• Real-time volatility momentum tracking with exponential decay modeling
• Adaptive thresholds that adjust to changing market conditions
• Visual compression markers highlighting potential accumulation zones
• Breakout signals with directional bias (bullish/bearish) based on price movement
• Non-repainting design - calculations finalize only on bar close
• Customizable parameters for different instruments and trading styles

Visual Elements

• Orange Line: Main volatility intensity measure
• Green Dotted Line: Low volatility threshold (compression zone)
• Red Dotted Line: High volatility threshold (breakout zone)
• Yellow Circles: Market compression periods detected
• Arrows: Directional breakout signals (green=up, red=down)

Technical Specifications

• Logarithmic price calculations for accuracy across all price levels
• Default 336-period ATR normalization (2 weeks on H1 charts)
• 168-bar quantile lookback (1 week on H1 charts)
• Adjustable decay parameter (Kappa) for volatility persistence tuning
• Works on any timeframe and instrument

Perfect for traders who want to understand when markets are likely to move and in which direction, based on volatility dynamics rather than price patterns alone.

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⚠️ Disclaimer

This indicator is provided for educational and informational purposes only. It is not intended as financial or investment advice. Nothing in this product, its documentation, or any related materials should be construed as a recommendation to buy, sell, or hold any financial instrument. Trading in financial markets involves significant risk and may not be suitable for all investors. Past performance is not indicative of future results. There is no guarantee of profits, and users may incur substantial losses. By using this indicator, you acknowledge that you are solely responsible for your own trading decisions and financial outcomes. The creator of this product shall not be held liable for any losses or damages arising directly or indirectly from its use. Always conduct your own analysis before making any trading decisions.