Indicator Overview

The Volatility Fractals indicator evaluates Bitcoin’s volatility by analysing price ranges defined by fractal pivot points, comparing them to current bar fluctuations. Normalised and smoothed over a 5-period EMA, it produces an intensity curve that reflects clustering volatility. This indicator is crucial for identifying market regimes, as high volatility often signals impending price breakouts or reversals, while low volatility indicates calm, accumulation-driven phases. It provides a dynamic view of Bitcoin’s price structure, helping us anticipate shifts in market activity.

How To Use

The indicator’s intensity curve rises above 20 (purple line) during high-volatility periods, often preceding significant price movements or trend changes. Values near 0 (white line) indicate low volatility, typically associated with consolidation or range-bound markets. Traders can use sharp increases in intensity to position for potential breakouts, while low-intensity periods may signal opportunities to accumulate. The purple gradient area visualises volatility strength, with darker hues indicating more intense activity. Investors can exercise caution during high-intensity spikes and build positions in low-intensity zones to capitalise on Bitcoin’s cyclical volatility patterns.