Volatility Bands

The Volume Concepts uses Elastic Bands on the price pane to visualize the statistical boundaries used for the oscillator calculation.

Band Types

There are four bands plotted on the chart:

1. Outer Bands (±σ x2):

   • Logic: Based on the Standard Deviation of the volume-weighted mean.

   • Purpose: These represent the extreme boundaries of expected volatility. Price wicking out of these bands is a "Breakout".

2. Inner Bands (±σ x1):

   • Logic: Based on the Robust Sigma (Mean Absolute Deviation).

   • Purpose: These are "Robust" measures that are less sensitive to price spikes but more responsive to sustained volume shifts. They define the "Core" range of the asset.

Using the Bands

• Band Expansion: Indicates a high-volatility environment (Trending).

• Band Contraction: Indicates low volatility (Consolidation/Squeeze).

• Mean Line (Gray Line): This is the ePulse μ (Elastic Pulse Mean). It's the volume-weighted "Fair Value" of the asset.

• Shadow Fills: The areas between the Inner and Outer bands are filled to create "Extreme Heatmaps", helping you quickly identify when the price is entering an over-extended state.