OPEN-SOURCE SCRIPT
Updated Sigmoidal Candle Count Risk (SCCR)
Sigmoidal Candle Count Risk (SCCR)
This indicator is designed to identify potential reversal levels based on the number of consecutive candles moving in the same direction. Its core premise is based on the sequence of consecutive candles moving in uniform. The assumption is that an increasing sequence of consecutive candles heightens the likelihood of a reversal.
Functionality:
This indicator is designed to identify potential reversal levels based on the number of consecutive candles moving in the same direction. Its core premise is based on the sequence of consecutive candles moving in uniform. The assumption is that an increasing sequence of consecutive candles heightens the likelihood of a reversal.
Functionality:
- It uses the sigmoid function to translate the difference between bullish (upward) and bearish (downward) candle counts into a risk value ranging from 0 (low risk, bullish sentiment) to 1 (high risk, bearish sentiment)
- Additionally, it uses a symmetrically weighted moving average for smoothing.
Release Notes
Made a mistake in the previous description. Here is the corrected sigmoid function:Also updated the RiskMeasure() parameters from close>open,open>close to close>close[1],close[1]>close to better reflect increases/decreases in price.
Release Notes
Added a timeframe option. Larger timeframe readings tend to provide more probable setups.Release Notes
Changed scale from 0-1 to 0-100 and added middle line.Release Notes
General script clean up, visual updates, and added description in the script.
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.
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