Timbuktu V - Average percentage of absolute price movement

Timbuktu V - Average percentage of absolute price movement between the specified date/time and the last candle

This Pine Script v5 indicator calculates and displays in a table the average percentage of absolute price movement per candle from a user-defined start date/time up to the most recent candle on the chart.

Technical Description
The user sets a start time (startTime) and display parameters such as table position and text size. For each candle, the script computes the absolute percentage change: |(close – open) / open × 100|. Up to 5000 candles back are evaluated, and only those occurring after the chosen start time are included. The script accumulates the values and calculates the average absolute percentage change. A table is drawn on the chart showing: the label “Average % (abs)”, the calculated average percentage (two decimals), and the number of candles used in the calculation.

Practical Trading Applications

Volatility measurement: assess the average volatility of an asset over a chosen period.

Strategy selection: identify whether conditions favor range-bound strategies (low volatility) or breakout/momentum strategies (high volatility).

Risk management: adjust stop loss, take profit, and position sizing based on the average price movement.

Asset comparison: compare different instruments (stocks, crypto, futures) to find those with higher or lower average movement.

Event impact analysis: set the start time at a major event (earnings, rate decision) to measure how volatility evolved afterward.

Backtesting conditions: evaluate historical market environments to validate whether a strategy performs better in high- or low-volatility phases.

In summary, Timbuktu V provides a clear and visual way to quantify relative market volatility, helping traders make more informed decisions about which assets to trade, how to size positions, and which strategies to apply under different market conditions.