Indicator Overview

The Volatility Directional Bias (VDB) indicator measures the imbalance between upside and downside volatility in price. By calculating standard deviations for positive and negative price moves over a selectable window and smoothing them with an exponential moving average, it highlights periods where bullish or bearish volatility dominates. This not only captures price swing intensity but also provides directional bias, helping to identify consolidation, upward pressure, or downward pressure. The indicator combines the VDB oscillator with price and optional background gradients to offer a clear view of market sentiment and potential trend shifts.

Dual-Ticker Comparison Logic

The ‘Crypto’ fields allow the indicator to operate in both absolute price and relative performance modes, making it suitable for outright positioning or pair-based allocation decisions.

• Single Crypto Analysis: If Crypto 2 is left blank, the indicator measures Crypto 1 against US Dollars. This mode is designed to identify statistically stretched rallies, deep mean-reversion zones, and long-term accumulation conditions where price trades multiple standard deviations below its historical average.

• Relative Strength and Ratios: When both fields are populated, the indicator automatically constructs a ratio of Crypto 1 divided by Crypto 2, such as ETH/BTC or SUI/SOL. The metric is then calculated on the ratio itself, isolating relative performance and stripping out broad market beta. This enables precise identification of overperformance, underperformance, and regime shifts between assets.

How To Use

A positive VDB signals stronger upside volatility, indicating a bullish regime, while a negative VDB shows dominant downside volatility, suggesting bearish pressure. Values near zero often reflect balanced or consolidating markets. Traders can use rising bullish VDB to anticipate breakouts and growing bearish VDB to warn of downward momentum. Background gradient shading reinforces these signals visually. Use the VDB alongside price action and trend analysis for better-informed trading decisions, rather than relying on it alone.