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Adjustable Correction from ATH Signal

A "Correction Signal from All-Time High" is an indicator used to identify potential reversals or pullbacks in an asset's price after it has reached its highest historical level, known as an all-time high (ATH). This signal typically occurs when the price begins to decline after hitting the ATH, suggesting a correction phase where the asset retraces part of its upward movement.
Key elements of this signal include:
Overbought Conditions: The asset may have experienced a strong rally leading to an overbought condition, where the price could be considered too high relative to recent trends.
Reversal Patterns: The correction signal is often accompanied by technical patterns or indicators that suggest a reversal, such as bearish candlestick formations, negative divergence in momentum indicators, or moving average crossovers.
Percentage Decline: A correction is generally defined as a price drop of at least 10% from the ATH, although smaller pullbacks may also signal potential market shifts.
Volume Analysis: Increased selling volume after the ATH can validate the correction signal, indicating that more market participants are taking profits or exiting positions.
This signal helps traders and investors anticipate periods of market consolidation or potential downturns after significant price advances, allowing for better risk management or entry points for new positions.
Key elements of this signal include:
Overbought Conditions: The asset may have experienced a strong rally leading to an overbought condition, where the price could be considered too high relative to recent trends.
Reversal Patterns: The correction signal is often accompanied by technical patterns or indicators that suggest a reversal, such as bearish candlestick formations, negative divergence in momentum indicators, or moving average crossovers.
Percentage Decline: A correction is generally defined as a price drop of at least 10% from the ATH, although smaller pullbacks may also signal potential market shifts.
Volume Analysis: Increased selling volume after the ATH can validate the correction signal, indicating that more market participants are taking profits or exiting positions.
This signal helps traders and investors anticipate periods of market consolidation or potential downturns after significant price advances, allowing for better risk management or entry points for new positions.
오픈 소스 스크립트
진정한 트레이딩뷰 정신에 따라 이 스크립트 작성자는 트레이더가 기능을 검토하고 검증할 수 있도록 오픈소스로 공개했습니다. 작성자에게 찬사를 보냅니다! 무료로 사용할 수 있지만 코드를 다시 게시할 경우 하우스 룰이 적용된다는 점을 기억하세요.
면책사항
이 정보와 게시물은 TradingView에서 제공하거나 보증하는 금융, 투자, 거래 또는 기타 유형의 조언이나 권고 사항을 의미하거나 구성하지 않습니다. 자세한 내용은 이용 약관을 참고하세요.
오픈 소스 스크립트
진정한 트레이딩뷰 정신에 따라 이 스크립트 작성자는 트레이더가 기능을 검토하고 검증할 수 있도록 오픈소스로 공개했습니다. 작성자에게 찬사를 보냅니다! 무료로 사용할 수 있지만 코드를 다시 게시할 경우 하우스 룰이 적용된다는 점을 기억하세요.
면책사항
이 정보와 게시물은 TradingView에서 제공하거나 보증하는 금융, 투자, 거래 또는 기타 유형의 조언이나 권고 사항을 의미하거나 구성하지 않습니다. 자세한 내용은 이용 약관을 참고하세요.