PROTECTED SOURCE SCRIPT
PriceCatch MDCPLevelsv1
Updated
Hi TV Community!
I am sharing a script that is aimed at swing/positional traders who only take long positions.
This script helps you to get a view of price drops in percentage points from a recent major high an instrument has made. The high is captured using Modified Donchain Channel Calculation. When an instrument is going down, traders are always interested to know how much it has dropped in percentage terms and this script helps in addressing this requirement.
With this script, simply by looking at an instrument on the chart, you can tell how far down it is from its recent major high. So, if a fundamentally strong instrument has dropped 30% due to market dynamics, that might be a level for you to consider a buying opportunity.
SAMPLE CHARTS
User Configuration
Period
Set the Period (historical bars) for the script to find a major high. Intermediate highs that the instrument makes are ignored so as to give a longer duration price action range.
Drop percentages
Enter 5 levels of drop percentages as per your trading style / choice. Generally, the default setting of 10, 20, 30, 40, 50 are good with most instruments.
Locking Profits & Exiting positions
A difficult aspect of trading is locking profits and exiting positions when your trade is in profits. Most traders are reluctant to close their positions due to greed and hope or prematurely close them due to fear. In both cases the decision is based on emotion rather than on systematic rules. It is worth remembering that exits are equally important as entries.
PriceCatch MDCP Levels script also addresses this problem faced by traders and does so in a unique way. Specifically as many traders usually like to compare returns with other forms of investment such as Bank Fixed Deposit interest rates, this script helps you to enter current Fixed Deposit Interest Rate and then plots those levels also on the chart. So, when a trader takes an entry at the 30% drop level, the profit levels plotted on the chart helps the trader set proper targets to close the trade. For example, if you have entered 6.75 as FD rate, then the script will plot 6.75% gain level over 30% level to give you visual clue which serves to help you set your targets immediately after your buy trade has executed.
NOTE: If you wish to close a trade when price reaches 5% above buy price, you can enter 5 in the Current Bank FD Rate field. The idea of FD Rate is to give you satisfaction that the trade gave you profits equalling FD Rate for which you would have to normally wait 365 days if you had opened an FD instead of taking the trade.
Style Tab
From the style tab you can hide some levels that you do not wish to be shown on the chart.
Visibility
From the Visibility tab you can control on which time-frames only, this script displays the levels.
Advantages
For positional traders who trade only on fundamentally strong stocks, this script should be of use due to the way it helps you see price action and also enable you to take trades at potentially good levels.
NOTE:
As with any other indicator, please satisfy yourself thoroughly that it works for you before you decide to deploy PriceCatch MDCP Levels on your chart. The script is shared without any warranties that it will be of use to you. As a trader you are aware that trading is more about the trader than any strategy; trading involves financial risk and that you are solely responsible for your actions. If you agree to the above, please feel free to use PriceCatch MDCP Levels.
QUERIES / COMMENTS
Please feel free to reach out to me with any queries or comments. All the best with your trading.
Regards
PriceCatch
I am sharing a script that is aimed at swing/positional traders who only take long positions.
This script helps you to get a view of price drops in percentage points from a recent major high an instrument has made. The high is captured using Modified Donchain Channel Calculation. When an instrument is going down, traders are always interested to know how much it has dropped in percentage terms and this script helps in addressing this requirement.
With this script, simply by looking at an instrument on the chart, you can tell how far down it is from its recent major high. So, if a fundamentally strong instrument has dropped 30% due to market dynamics, that might be a level for you to consider a buying opportunity.
SAMPLE CHARTS
User Configuration
Period
Set the Period (historical bars) for the script to find a major high. Intermediate highs that the instrument makes are ignored so as to give a longer duration price action range.
Drop percentages
Enter 5 levels of drop percentages as per your trading style / choice. Generally, the default setting of 10, 20, 30, 40, 50 are good with most instruments.
Locking Profits & Exiting positions
A difficult aspect of trading is locking profits and exiting positions when your trade is in profits. Most traders are reluctant to close their positions due to greed and hope or prematurely close them due to fear. In both cases the decision is based on emotion rather than on systematic rules. It is worth remembering that exits are equally important as entries.
PriceCatch MDCP Levels script also addresses this problem faced by traders and does so in a unique way. Specifically as many traders usually like to compare returns with other forms of investment such as Bank Fixed Deposit interest rates, this script helps you to enter current Fixed Deposit Interest Rate and then plots those levels also on the chart. So, when a trader takes an entry at the 30% drop level, the profit levels plotted on the chart helps the trader set proper targets to close the trade. For example, if you have entered 6.75 as FD rate, then the script will plot 6.75% gain level over 30% level to give you visual clue which serves to help you set your targets immediately after your buy trade has executed.
NOTE: If you wish to close a trade when price reaches 5% above buy price, you can enter 5 in the Current Bank FD Rate field. The idea of FD Rate is to give you satisfaction that the trade gave you profits equalling FD Rate for which you would have to normally wait 365 days if you had opened an FD instead of taking the trade.
Style Tab
From the style tab you can hide some levels that you do not wish to be shown on the chart.
Visibility
From the Visibility tab you can control on which time-frames only, this script displays the levels.
Advantages
For positional traders who trade only on fundamentally strong stocks, this script should be of use due to the way it helps you see price action and also enable you to take trades at potentially good levels.
NOTE:
As with any other indicator, please satisfy yourself thoroughly that it works for you before you decide to deploy PriceCatch MDCP Levels on your chart. The script is shared without any warranties that it will be of use to you. As a trader you are aware that trading is more about the trader than any strategy; trading involves financial risk and that you are solely responsible for your actions. If you agree to the above, please feel free to use PriceCatch MDCP Levels.
QUERIES / COMMENTS
Please feel free to reach out to me with any queries or comments. All the best with your trading.
Regards
PriceCatch
Release Notes
Code cleanup.
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.