Sunday, March 2, 2014

thinkscript included: sdi_ivp release 1.3

i've opened the hood on the sdi_ivp script once again and the result is release 1.3. this time in response to several inquiries as to whether i could program a hot-tip (or powertip) for the candles that shows the value of the indicator in the past when the mouse hovers over a candle. unfortunately mouse events are not available in thinkscript. however, this got me to thinking that maybe there was a way to indicate when in the past has the ivp transitioned between high and low, one that did overly crowd a chart. so here's my solution:
sdi_ivp release 1.3 on spy
the dots running just above the chart high is this new indicator. it follows a simple red light/green light color scheme, where you can think of the green-light as go for premium selling trades.

then, as tina turner says "we never do nuthin' nice and easy," i complicated it a little. i tied the label color to the current color of the dots. maybe you want to show a midrange - there's a parameter for that. maybe you want to place the dots below the low of the chart - there's a parameter for that. maybe you don't like the choice of text for the label - there's a parameter for that. maybe you don't like the colors for high/mid/low - there's a parameter for that.

about the new default text for the label: i decided that i like this text to be "iv%r" for implied volatility percent range. this is because there is precedent for this nomenclature in the technical indicator biz e.g. williams %r, and i don't like the appellation of rank, which i think implies something completely different. a rank is the ordinal value of an item in a list e.g. class rank. i think that calling this indication a rank will eventually lead to ambiguity when people begin comparing implied volatilities between companies e.g. in the same industry. but, hey, i'm just a small dog investor so call it what you want ... there's a parameter for that.

as always i maintain the new releases for a thinkscript  on the original blog post which you can get here.


  1. Red light is above green at traffic lights. I assume this doesn't change your red green definition. Great indicator. Thank you. August

    1. ok, Augie, you pass the test! corrected the text.

  2. I m a newbie to TOS. Just discovered your blog in web.
    In TOS, there is already a study called ImpVolatility.
    I used that and compare with your ver1.3 script, the IVs shows are different.
    Appreciate your explanation on why.
    Thank you.