Indicator Overview

The MSTR Volatility Fractals indicator tracks Strategy’s underlying volatility regime by detecting fractal pivot structures in price action, measuring current bar fluctuations against these pivots. The output is a normalised intensity curve that highlights clustering volatility, a hallmark of MSTR’s behaviour during debt raises, Bitcoin purchase announcements, or premium collapse. The colour scheme runs from deep red at near-zero intensity (extreme calm) to bright white at peak intensity (maximum turbulence), with a key threshold at 20 marking the transition into high-volatility regimes.

How To Use

Values near 0 (deep red zone) signal extreme volatility compression, historically seen during stealth accumulation phases, pre-announcement lulls, or post-crash capitulation, creating some of the strongest setups for explosive upside moves in MSTR. Sharp rises above 20 (transition to white) indicate volatility expansion, typically coinciding with major news events, aggressive buying/selling pressure, or the start of parabolic premium expansion or violent deleveraging. Traders use the initial breakout above 20 as confirmation of regime shift and position for trend acceleration, while sustained white readings warn of over-extension and impending mean reversion. The gradient fill intensifies from blood-red calm to blinding white storm, giving instant visual feedback on whether MSTR is coiled for a move or already in full flight. Investors accumulate aggressively during prolonged deep-red periods and exercise extreme caution or take profits when the curve spikes into sustained white territory, making this one of the most effective tools for timing entries and managing risk in MSTR’s uniquely explosive volatility profile.