Upper and Lower Candle Trend Counter [theEccentricTrader]

2023년 4월 2일

█  OVERVIEW


This indicator counts the number of confirmed upper and lower candle trend scenarios on any given candlestick chart and displays the statistics in a table, which can be repositioned and resized at the user's discretion.


█  CONCEPTS


Green and Red Candles

• A green candle is one that closes with a close price equal to or above the price it opened.
• A red candle is one that closes with a close price that is lower than the price it opened.

Upper Candle Trends

• A higher high candle is one that closes with a higher high price than the high price of the preceding candle.
• A lower high candle is one that closes with a lower high price than the high price of the preceding candle.
• A double-top candle is one that closes with a high price that is equal to the high price of the preceding candle.

Lower Candle Trends

• A higher low candle is one that closes with a higher low price than the low price of the preceding candle.
• A lower low candle is one that closes with a lower low price than the low price of the preceding candle.
• A double-bottom candle is one that closes with a low price that is equal to the low price of the preceding candle.

Muti-Part Upper and Lower Candle Trends

• A multi-part higher high trend begins with the formation of a new higher high and continues until a new lower high ends the trend.
• A multi-part lower high trend begins with the formation of a new lower high and continues until a new higher high ends the trend.
• A multi-part higher low trend begins with the formation of a new higher low and continues until a new lower low ends the trend.
• A multi-part lower low trend begins with the formation of a new lower low and continues until a new higher low ends the trend.


█  FEATURES


Inputs

• Start Date
• End Date
• Position
• Text Size

Table

The table is colour coded, consists of seven columns and, as many as, sixty-two rows. Blue cells denote the multi-part trend scenarios, green cells denote the corresponding upper candle trend scenarios and red cells denote the corresponding lower candle trend scenarios.

The multi-part candle trend scenarios are listed in the first column with their corresponding total counts to the right, in the second and fifth columns. The last row in column one, displays the sample period which can be adjusted or hidden via indicator settings.

The third and sixth columns display the candle trend scenarios as percentages of total 1-part candle trends. And columns four and seven display the total candle trend scenarios as percentages of the last, or preceding candle trend part. For example 4-part higher high trends as a percentages of 3-part higher high trends. This offers more insight into what might happen next at any given point in time.

Plots

For a visual aid to this indicator please use in conjunction with my Upper Candle Trends and Lower Candle Trends indicators which can both be found on my profile page under scripts, or in community scripts under the same names.

Green up-arrows, with the number of the trend part, denote higher high trends when above bar and higher low trends when below bar. Red down-arrows, with the number of the trend part, denote lower high trends when above bar and lower low trends when below bar.


█  HOW TO USE


This is intended for research purposes, strategy development and strategy optimisation. I hope it will be useful in helping to gain a better understanding of the underlying dynamics at play on any given market and timeframe.

It can, for example, give you an idea of whether the current upper or lower candle trend will continue or fail, based on the current trend scenario and what has happened in the past under similar circumstances. Such information can be useful when conducting top down analysis across multiple timeframes and making strategic decisions.

What you do with these statistics and how far you decide to take your research is entirely up to you, the possibilities are endless.


█  LIMITATIONS


Some higher timeframe candles on tickers with larger lookbacks such as the DXY , do not actually contain all the open, high, low and close (OHLC) data at the beginning of the chart. Instead, they use the close price for open, high and low prices. So, while we can determine whether the close price is higher or lower than the preceding close price, there is no way of knowing what actually happened intra-bar for these candles. And by default candles that close at the same price as the open price, will be counted as green. You can avoid this problem by utilising the sample period filter.

It is also worth noting that the sample size will be limited to your Trading View subscription plan. Premium users get 20,000 candles worth of data, pro+ and pro users get 10,000, and basic users get 5,000. If upgrading is currently not an option, you can always keep a rolling tally of the statistics in an excel spreadsheet or something of the like.

2023년 4월 2일

릴리즈 노트

Corrected a typo in the 1-part trend variables.