Price Movement > Custom Points with Day of Week

20 Sep

The code is a TradingView Pine Script indicator designed to track and visualize price movements in a financial market (like stocks or cryptocurrencies) based on a specific point threshold. Here’s a breakdown of its functionality:

Purpose of the Code:
Price Movement Calculation: It calculates the difference between the closing price and the opening price of each bar (or candle) to determine if the price has moved significantly.

Threshold Input: The user can set a threshold (e.g., 500 points) to determine what constitutes a significant movement.

Movement Conditions:

Positive Movement: If the price movement is greater than the threshold, it’s marked as a positive movement.
Negative Movement: If the price movement is less than the negative threshold (i.e., below -500 points), it’s marked as a negative movement.
Day of the Week Identification: The script identifies the day of the week for each bar (Monday through Sunday).

Visual Output:

It plots shapes (like labels) on the chart:
For positive movements, it shows "YES" in green, indicating the movement exceeded the threshold for that day.
For negative movements, it shows "YES" in red, indicating the movement fell below the negative threshold for that day.
Use Cases:
Traders: It helps traders quickly identify days where significant price movements occurred, allowing them to analyze trends and make informed trading decisions.
Market Analysis: The indicator can be used for backtesting strategies based on significant price movements.
Overall, this code serves as a visual tool for analyzing price volatility in a market based on user-defined thresholds and day-based observations. If you have any specific questions or need further clarification about any part of it, feel free to ask!