A proposed naming convention suggests using $1, $2, $3 for loop index variables according to the loop's depth to avoid confusion and enhance clarity.
Benefits of this convention include low cognitive load, immediate clarity on index variables, clear nesting hierarchy indication, prevention of variable name conflicts, and consistency in team development.
Comparison with traditional naming conventions highlights the improved clarity and understanding of loop nesting hierarchy with the proposed $1, $2, $3 method.
The application of this naming convention extends beyond JavaScript to other languages and fields, offering advantages in organizing loop indices and enhancing code quality in various programming scenarios.