Indicator Overview

The Volatility Directional Bias (VDB) indicator measures the imbalance between upside and downside volatility in Bitcoin’s 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 BTC price and optional background gradients to offer a clear view of market sentiment and potential trend shifts.

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.