# ============================================================
# MIZAN presents: Closing Argument — thinkScript · v1.0
# mizanquant.com/free · free & open source · a QWERTY Options Inc. tool
#
# WHAT IT DOES
# Two gauges built on the Synthetic VIX concept Larry Williams
# published in Active Trader (2007), run in both directions. The
# DOUBT gauge measures how far price has dropped below its recent
# high-water mark: it spikes when fear peaks, historically the
# neighborhood of capitulation lows. The CLOSE gauge is its mirror,
# measuring how far price has stretched above its recent low-water
# mark: it spikes when euphoria peaks, historically the neighborhood
# where positions get wrapped up. Each gauge carries its own
# statistical band; dots mark the bar a spike begins. It describes
# crowd extremes; it does not advise.
#
# ORIGINALITY NOTE
# Original in-house implementation of the published concept. It
# shares no code with any Buy-the-Dip or VIX Fix script, and the
# concept credit belongs to Larry Williams.
#
# INSTALL (thinkorswim desktop)
# Charts > Studies > Edit Studies > Create > delete the template,
# paste this whole file, name it, OK, Apply.
# ============================================================

declare lower;

# ----- INPUTS -----
input lookback = 22;             # bars for the water marks
input bandLength = 50;           # stat band window over each gauge
input bandStdevs = 2.0;          # spike threshold in standard deviations
input useTrendFilter = yes;      # mute DOUBT spike dots below the long average
input trendLength = 200;
input trendAvgType = AverageType.SIMPLE;
input showSpikeDots = yes;
input showStatusLabel = yes;

# ----- THE TWO GAUGES -----
def hiWater = Highest(close, lookback);
def loWater = Lowest(close, lookback);

def doubtVal = if hiWater > 0 then (hiWater - low) / hiWater * 100 else 0;
def closeVal = if loWater > 0 then (high - loWater) / loWater * 100 else 0;

# ----- STATISTICAL SPIKE BANDS -----
def doubtEdge = Average(doubtVal, bandLength) + bandStdevs * StDev(doubtVal, bandLength);
def closeEdge = Average(closeVal, bandLength) + bandStdevs * StDev(closeVal, bandLength);

def trendAvg = MovingAverage(trendAvgType, close, trendLength);
def trendOK = if useTrendFilter then close >= trendAvg else 1;

def doubtSpiking = doubtVal > doubtEdge;
def closeSpiking = closeVal > closeEdge;
def doubtStart = doubtSpiking and !doubtSpiking[1] and trendOK;
def closeStart = closeSpiking and !closeSpiking[1];

# ----- PLOTS -----
plot DoubtGauge = doubtVal;
DoubtGauge.AssignValueColor(if doubtSpiking then Color.GREEN else Color.DARK_GREEN);
DoubtGauge.SetLineWeight(2);

plot CloseGauge = closeVal;
CloseGauge.AssignValueColor(if closeSpiking then Color.ORANGE else Color.DARK_ORANGE);
CloseGauge.SetLineWeight(2);

plot DoubtBand = doubtEdge;
DoubtBand.SetDefaultColor(Color.DARK_GREEN);
DoubtBand.SetStyle(Curve.SHORT_DASH);
DoubtBand.SetLineWeight(1);

plot CloseBand = closeEdge;
CloseBand.SetDefaultColor(Color.DARK_RED);
CloseBand.SetStyle(Curve.SHORT_DASH);
CloseBand.SetLineWeight(1);

plot DoubtDot = if showSpikeDots and doubtStart then doubtVal else Double.NaN;
DoubtDot.SetPaintingStrategy(PaintingStrategy.POINTS);
DoubtDot.SetDefaultColor(Color.CYAN);
DoubtDot.SetLineWeight(4);

plot CloseDot = if showSpikeDots and closeStart then closeVal else Double.NaN;
CloseDot.SetPaintingStrategy(PaintingStrategy.POINTS);
CloseDot.SetDefaultColor(Color.MAGENTA);
CloseDot.SetLineWeight(4);

# ----- STATUS -----
AddLabel(showStatusLabel,
    "DOUBT " + Round(doubtVal, 2) + (if doubtSpiking then " SPIKING" else "") +
    " | CLOSE " + Round(closeVal, 2) + (if closeSpiking then " SPIKING" else ""),
    if closeSpiking then Color.ORANGE else if doubtSpiking then Color.GREEN else Color.LIGHT_GRAY);
AddLabel(showStatusLabel and useTrendFilter and !trendOK,
    "BELOW " + trendLength + " MA - doubt dots muted", Color.GRAY);

# ----- ALERTS -----
Alert(doubtStart, "Closing Argument: fear spiked above its band", Alert.BAR, Sound.Bell);
Alert(closeStart, "Closing Argument: euphoria spiked above its band", Alert.BAR, Sound.Bell);
Alert(!doubtSpiking and doubtSpiking[1], "Closing Argument: fear cooled back inside", Alert.BAR, Sound.Ding);
Alert(!closeSpiking and closeSpiking[1], "Closing Argument: euphoria cooled back inside", Alert.BAR, Sound.Ding);

# ----- SCAN EXPORTS -----
plot ScanDoubt = doubtVal;
ScanDoubt.Hide();

plot ScanClose = closeVal;
ScanClose.Hide();

plot ScanDoubtSpike = if doubtSpiking then 1 else 0;
ScanDoubtSpike.Hide();

plot ScanCloseSpike = if closeSpiking then 1 else 0;
ScanCloseSpike.Hide();

# Concept: Larry Williams' Synthetic VIX (Active Trader, 2007),
# applied in both directions. Implementation: original, QWERTY
# Options Inc.
# Educational tool. It describes crowd extremes; it does not give
# advice, and no output is a recommendation to buy or sell anything.
# Trading involves substantial risk of loss. mizanquant.com/terms