Indicator Overview

The Volatility-Based Chopsolidation indicator identifies Bitcoin’s consolidation phases by tracking the 30-day price range (highest to lowest daily closes) and measuring its width as a percentage of the low. When the range width falls below an 8% threshold, it signals a tight, low-volatility “chopsolidation” zone. Plotted as high (green) and low (red) lines with a dark slate background, it’s designed to detect compressed market states, factoring in Bitcoin’s cyclical volatility patterns.

How To Use

A range width below 8% (highlighted by a dark slate background) indicates consolidation, ideal for preparing for potential breakout trades or pausing aggressive strategies. Wider ranges suggest active trends, suitable for momentum plays. The green (high) and red (low) lines frame the 30-day range, with a label displaying the current width percentage. Traders can enter positions on breakout signals post-consolidation or scalp within tight ranges. Investors may hold or accumulate during chopsolidation, reducing activity in volatile periods, aligning with Bitcoin’s cyclical breakout tendencies.