View difference between Paste ID: 0Vumd8Gt and jRDkHvXE

-# IV_Rank - IMPLIED VOLATILITY RANK - Adds a colored label to the chart showing IV Rank
+# IV_with_ivRank - IMPLIED VOLATILITY WITH IV RANK - Plots IV over the chart period with IV rank at right
 #
-# This study simply places a label on the chart showing the current IV
+# This combined study shows implied volatility graphically over time, as
-# Rank, otherwise known as IV Percentile. In addition, the label is
+# well as the current IV rank (a.k.a IV percentile) at the right of the
-# color-coded to hint at the IV Rank, where lower values appear red and
+# chart. In addition, the chart and its labels are color-coded to hint at
-# higher values are green, suggesting greater premium available to be
+# the IV rank, where lower values appear red and higher values are green,
-# sold at a higher IV Rank.
+# suggesting greater premium available to be sold at a higher IV rank.
 #
-# For a more complex presentation of IV Rank in the context of past implied
+# For a simpler study which only places an IV Rank label on the primary
-# volatility, see my other thinkScript: http://pastebin.com/0Vumd8Gt
+# chart, see my other thinkScript: http://pastebin.com/jRDkHvXE
 #
 # By: Chris Baker <[email protected]> @ChrisBaker97
-# Latest version maintained at: http://pastebin.com/jRDkHvXE
+# Latest version maintained at: http://pastebin.com/0Vumd8Gt
 # More thinkScripts at: http://pastebin.com/u/ChrisBaker97
 #
 # Credit goes to Allen Everhart (http://www.smalldoginvestor.com) for the
-# original idea and implementation of IV Percentile as a chart label.
+# original idea and implementation of IV percentile as a chart label.
 #
 # Portions of this code are derived from the IV_percentile Scan tab
 # thinkScript included with the thinkorswim platform by TD Ameritrade.
 #
 # This thinkScript is designed for use in the Charts tab.
 #
 # This work is licensed under the Creative Commons Attribution-ShareAlike
 # 3.0 Unported License. To view a copy of this license, visit:
 # http://creativecommons.org/licenses/by-sa/3.0/deed.en_US
 #
-# This version of the IV Rank study adds dynamic color-coding, for quick
+# I created this study to provide more context around the current IV rank
-# identification of high- or low-IV Rank. The code has also been
+# numerical value. While useful, the IV rank simply shows the percentile
-# streamlined for faster execution and ease of interpretation. There is
+# level of implied volatility over the aggregation period, and this can
-# also no need to specify a period for the study - the entire aggregation
+# be skewed by outliers — high or low IV for a brief period of time. This
-# period on the chart is used.
+# visual depiction shows IV cycles over time, and allows one to get a
 # better feel for how the current IV level compares to historical trends.
 #
 # The user input brightness can range from 0 to 100 and controls the
 # intensity of the plot's red-green color scheme. A lower brightness will
 # show up better on a light background, and vice versa.
 
 input brightness = 80 ;                 # overall brightness of IV display
-declare upper ;
+
-declare hide_on_intraday ;              # IV shows N/A for intraday aggregations, so we hide it
+declare lower ;
 declare hide_on_intraday ;
-def ivClean = if isNaN(impVolatility()) # if IV data doesn't exist for a particular period ...
+
-    then ivClean[1]                     # ... set it to the previous value so it won't taint the hi/lo
+def ivClean = if isNaN(impVolatility()) # if IV data doesn't exist for a particular period...
     then ivClean[1]                     # ...set it to the previous value so it won't taint the hi/low
     else impVolatility() * 100 ;
 
 def ivHi = HighestAll(ivClean) ;        # highest IV over range
 def ivLo =  LowestAll(ivClean) ;        # lowest IV over range
 
 def ivRange = ivHi - ivLo ;             # IV range from low to high
 
 def ivRank = Round( 100 * (ivClean - ivLo) / ivRange, 1) ;  # IV rank
 
 # Define a color level from 0 to 255 based on current IV%
 def level = ivRank * 2.55;
 
 # Check bounds and convert brightness input to an intensity factor between 0.2 and 1.0
 def intensity = if      brightness <   0 then 0.2
                 else if brightness > 100 then 1.0
                 else                          0.2 + (brightness * 0.008) ;
 
 # Calculate red and green color levels (modified by intensity) for the color function
 def rLvl = intensity * (255 - level) ;
 def gLvl = intensity * (level) ;
-# Add label, colored according to current IV Rank.
+
-AddLabel(yes, "IV Rank: " + ivRank + "%", CreateColor(rLvl, gLvl, 0)) ;
+# Plot raw implied volatility, colored according to IV Rank at each point.
 plot iv = if isNaN(impVolatility())     # check to make sure we're not out of data ...
     then double.NaN                     # ... and if we are, plot nothing ...
     else Round( ivClean, 1) ;           # ... else plot the raw IV
 iv.AssignValueColor(CreateColor(rLvl, gLvl, 0)) ; # color according to IV Rank
 iv.SetLineWeight(2) ;
 
 # Plot high and low raw IV bubbles.
 AddChartBubble(ivClean == ivHi and ! isNaN(impVolatility()),
     ivHi,"IV Hi: " + round(ivHi,1) + "%",Color.LIGHT_GRAY,up = yes) ;
 AddChartBubble(ivClean == ivLo and ! isNaN(impVolatility()),
     ivLo,"IV Lo: " + round(ivLo,1) + "%",Color.LIGHT_GRAY,up = no) ;
 
 # If the chart is set to extend to the right, we need to count how many bars
 # there are before we run out of data, in order to properly position the
 # IV Rank bubble horizontally.
 def maxBars = HighestAll(if isNan(imp_volatility()) then 0 else BarNumber());
 
 # Plot a bubble at the last data point, showing the present IV Rank.
 AddChartBubble(BarNumber() == maxBars,iv,"IV Rank: " + Round(ivRank,1) + "%",iv.TakeValueColor(),up = yes) ;