WaveNodes Volatility Meter 2026

User Guide for the 2026 TradingView edition

WaveNodes Volatility Meter 2026

Version 1.05

A TradingView technical analysis tool that displays volatility, a volatility baseline and the phase of price action in a separate pane.

Applies the same fixed calculations to any chart you open.

Does not select instruments, timeframes, entries or exits.

Describes volatility conditions; it does not forecast price.

Not investment advice or a research service.

Getting Started

Install on TradingView

Open TradingView and load the chart you want to study.
Open Indicators, then Invite-only Scripts.
Select WaveNodes Volatility Meter 2026. It opens in its own pane below the chart.
Read the License Agreement and related documents, then confirm in the dialog.
Keep default settings for your first review session.

First Session Checklist

Compare the volatility bars with the PEC line.
Note the colour of the bars (phase) and of the PEC line (volatility trend).
Read the Volatility, Volatility Trend and Trend Alignment rows in the dashboard.
Scroll back through history to see how the readings behaved in the past.

What's New in Version 1.05

New name: WaveNodes Volatility Meter 2026 (previously "AI Edition").
Auto theme: The theme now follows your chart background and switches between Dark and Light automatically. This is the new default.
Clearer names: "Big Move Coming" is now Volatility Squeeze, "Options Phase" is now Volatility Trend, "Reliability (High/Low)" is now Trend Alignment (Aligned/Not Aligned), and the related settings were renamed to match.
Trap Alert: The text now reads Buyer Trap Possible or Seller Trap Possible.
License Agreement: Ticked by default and still confirmed when the indicator is added. The reminder now appears in the dashboard area.
Performance: Faster loading and smoother updates. Unused calculations were removed, and labels and markers are updated on the latest bar only. The indicator calculates the most recent 3,500 bars.
Platform: Updated to Pine Script™ v6.

Components

The explanations below describe what you see in the pane. The underlying method is proprietary.

Volatility Bars

Columns showing current volatility. Taller bars mean larger price ranges; shorter bars mean calmer conditions. The colour shows the phase of price action.

-Blue: Mark Up or Recovery phase (bullish side).
-Red: Mark Down or Correction phase (bearish side).
-Lighter blue or orange: the phase is not confirmed by the trend (only when Highlight Bars Without Trend Alignment is on).
-Grey: neutral, no phase.
-Minimal Interface shows volatility as a line with the phase as a coloured strip at the bottom of the pane.

PEC Line

A stepped reference line for the broader volatility baseline. Comparing the bars with the PEC line shows whether current volatility is above or below its recent norm.

-Red: the PEC line is rising (volatility trend rising).
-Blue: the PEC line is declining (volatility trend declining).
-The line is calculated by a proprietary smoothing method and adapts to the instrument and timeframe.

Phase Of Price Action

Classifies price action into four phases: Mark Up, Recovery, Correction and Mark Down. The phase colours the volatility bars and the dashboard.

-Phase Sensitivity (10–90, default 50) controls how quickly the phase changes. Lower values change faster; higher values change slower.
-The first bar of a new phase is shown as "Weak" (for example Weak Bullish) in the dashboard.

Volatility Squeeze

Shown when the volatility baseline has compressed into a narrow band. A squeeze describes compressed volatility; it does not indicate the direction or size of any later move.

-Dashboard: "🚨 Volatility Squeeze". Traditional interface: "◉ Volatility Squeeze".
-Controlled by Show Volatility Squeeze Label (on by default).

Trap Alert

Reports "Buyer Trap Possible" or "Seller Trap Possible" when a sustained momentum extreme starts to fade. It highlights risk, not direction.

-Off by default. Turn on Show Trap Alert (Textual) to display it.
-Uses the same momentum-exhaustion concept as the Trap Alert System in WaveNodes Professional.

Volatility Marker

An optional line from the start of the current phase with a label such as "Bullish Expanding Volatility" or "Bearish Contracting Volatility".

-Expanding: volatility increased over the last three completed bars.
-Contracting: volatility decreased over the last three completed bars.
-Off by default. Turn on Show Volatility Marker to display it.

Dashboard

The dashboard appears at the bottom right of the pane (unless Traditional Interface is on) and summarises the latest readings.

Field	What It Shows
🚨 Volatility Squeeze	Shown when the volatility baseline is compressed (if the label is enabled).
Trap Alert text	Buyer Trap Possible or Seller Trap Possible (if enabled).
Volatility	Bullish, Weak Bullish, Bearish, Weak Bearish or Neutral, based on the phase of price action.
Volatility Trend	Rising Volatility or Declining Volatility, based on the direction of the PEC line.
Trend Alignment	Aligned when the current phase agrees with the short-term price trend; Not Aligned otherwise.
⚠️ Premium Decay Risk: Elevated	Shown while the volatility trend is declining. When volatility declines, option premiums tend to lose value faster over time. This describes a market condition only.

Live Bar Behaviour

The volatility bars, PEC line, phase colours and dashboard reflect the current bar, including while it is still forming, and settle when the bar closes.
Values on closed historical bars do not change afterwards.
The volatility marker uses the last three completed bars to decide between Expanding and Contracting.
The Volatility Meter has no alert conditions.

Settings

License Agreement

Ticked by default. TradingView asks you to confirm it when the indicator is added. If unticked, nothing is drawn and a reminder is shown.

Minimal Interface

Shows volatility as a line with a phase strip at the bottom. Default: off.

Theme

Auto (default) follows your chart background and picks Dark or Light automatically. Dark or Light can also be set manually.

Phase Sensitivity

10–90 in steps of 10. Default: 50.

Show Volatility Marker

Shows the volatility marker line and label. Default: off.

Highlight Bars Without Trend Alignment

Shows bars whose phase is not confirmed by the trend in lighter colours. Default: on.

Show Trap Alert (Textual)

Shows the trap alert text. Default: off.

Show Volatility Squeeze Label

Shows the volatility squeeze label. Default: on.

Traditional Interface

Shows labels in the pane instead of the dashboard table. Default: off.

Troubleshooting

"Please accept the License Agreement"

The agreement checkbox is unticked. Open the indicator settings and tick it.

Indicator appears on the price chart

Move it to its own pane: open the indicator menu and choose Move to → New pane below.

Phase changes too often

Increase Phase Sensitivity gradually.

Phase changes too slowly

Decrease Phase Sensitivity gradually.

Dashboard hides the bars

Turn on Traditional Interface, or resize the pane.

Glossary

Volatility

How much price moves within bars over a recent period.

PEC Line

A smoothed reference line for the broader volatility baseline.

Phase

Mark Up, Recovery, Correction or Mark Down, describing the current state of price action.

Volatility Squeeze

A period when the volatility baseline has compressed into a narrow band.

Trend Alignment

Whether the current phase agrees with the short-term price trend.

Premium Decay

The tendency of option premiums to lose value over time, which is more noticeable when volatility declines.

Disclaimer And Risk Disclosure

WaveNodes Volatility Meter is a software tool. It applies fixed mathematical calculations to whatever chart the user selects and does not select securities, timeframes, entries or exits for anyone. WaveNodes does not provide investment advice or research services and is not registered with the Securities and Exchange Board of India (SEBI) as an Investment Adviser or Research Analyst.

Nothing in the indicator, this guide, our website or our support channels is a recommendation to buy, sell, write or hold any security, option or other derivative.
Labels such as Volatility Squeeze, Trap Alert and Premium Decay Risk describe calculated conditions. They are not instructions to trade.
We do not promise or guarantee any return, accuracy level or success rate.
Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.
Trading in options and other derivatives carries a high risk of loss. Refer to the SEBI risk disclosure on derivatives in our Risk Disclosure.
Past performance and historical readings do not guarantee future results.
All trading decisions and their outcomes are your own responsibility. Consult a SEBI-registered Investment Adviser if you need personalised advice.

Review the full Risk Disclosure, Terms & Conditions, and License Agreement.

Last updated: October 4, 2026