OPEN-SOURCE SCRIPT
Threshold counter
OVERVIEW
The "Threshold Counter" is a tool for quantifying occurrences of closing prices of an asset that align with specified criteria and is a flexible and visual approach to studying price action.
A user-definable target threshold can be set and a comparator (<, =, >, and so on) can be selected. The indicator counts values on the main chart meeting these conditions, over a user-defined `lookback` period.
KEY FEATURES
USE-CASES
IMPORTANT CONSIDERATIONS
The "Threshold Counter" is a tool for quantifying occurrences of closing prices of an asset that align with specified criteria and is a flexible and visual approach to studying price action.
A user-definable target threshold can be set and a comparator (<, =, >, and so on) can be selected. The indicator counts values on the main chart meeting these conditions, over a user-defined `lookback` period.
KEY FEATURES
- User definable threshold: target value with optional upper bound can be specified
- Versatile Comparisons: Choose from "=", ">=", ">", "<=", "<", "between", and "between (inclusive)" for diverse analysis.
- Historical Analysis: Assess occurrences over a customisable period.
- Visual Representation: Displays instances graphically on the chart with customisable colours.
- Summary: Provides a summary label for a quick understanding of the analysed data.
USE-CASES
- Pattern Recognition: Identify patterns or trends based on user-defined price criteria.
- Threshold Analysis: Quantify occurrences of prices crossing or staying within a specified range.
- Strategy Testing: Evaluate historical performance of strategies relying on specific price conditions.
- Behavioural Insights: Gain insights into price behaviour by counting occurrences of interest.
- The "Threshold Counter" indicator offers a flexible and visual approach to studying price action, which may aid in making decisions based on historical data.
IMPORTANT CONSIDERATIONS
- Period selection: The effectiveness of the analysis may be influenced by the choice of the lookback period. Consider an appropriate duration based on the strategy or pattern being analysed.
- Comparator Selection: Comparison operator selection will obviously affect the results. There are two range operators of `between` and `between (inclusive)`. The latter will add closing prices that exactly meet the threshold and upper bound. The former does not.
- Visualisation: Interpretation of the visual representation is colour-coded.
[**]Red is threshold condition is not met.
[**]Green is threshold condition is met.
[**]Aqua is outside of the lookback period. - User Discretion: This script relies on historical data and should be used with caution. Past performance is not indicative of future results.
- Supplementary Analysis: Trading decisions should not rely solely on this script. Users should exercise judgment and consider market conditions.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.