Skip to content
Nocterm Docs

Volatility cone

The volatility cone projects an expected forward range from the last price, drawn from the asset’s own recent volatility. It’s not a prediction of direction - it’s a sense of how far price could reasonably travel, so a move that looks dramatic on the candles can be read against what’s statistically normal for this market.

Where: Chart Options ▸ Volatility ConePanel: Chart
📷
Screenshot needed
id: order-flow-volatility-cone

A chart with the volatility cone fanning forward from the last price into percentile bands

suggested 1280x720

Overview

Section titled “Overview”

Nocterm measures realized volatility over a rolling window and fans percentile bands forward from now. The outer bands mark the wider, less-likely range; the inner bands the tighter, more-likely one. A breakout that’s still inside the cone is ordinary; one that punches through the outer band is genuinely unusual.

How to use

Section titled “How to use”

  1. Open Chart Options and switch on the Volatility Cone.

  2. Read the current move against the bands: inside the inner band is quiet, riding the outer band is an outsized move worth a second look.

    📷
    Screenshot needed
    id: order-flow-volatility-cone-bands

    Close-up of the cone's percentile bands around a developing move

    suggested 900x540

Reading the bands

Section titled “Reading the bands”
BandMeaning
InnerThe tighter, more-likely range - most bars stay here
OuterThe wider, less-likely range - reaching it signals an outsized move
Section titled “Related”