Overview
The "Pre-COVID High and COVID Low" indicator is designed to identify and mark significant price levels on your chart, specifically targeting the pre-COVID-19 high and the low during the initial COVID-19 market impact. This script is particularly useful for traders who are interested in analyzing how stocks or other financial instruments reacted during the onset of the COVID-19 pandemic, providing a historical perspective that may help in making informed trading decisions.
How It Works
The "Pre-COVID High and COVID Low" indicator is designed to identify and mark significant price levels on your chart, specifically targeting the pre-COVID-19 high and the low during the initial COVID-19 market impact. This script is particularly useful for traders who are interested in analyzing how stocks or other financial instruments reacted during the onset of the COVID-19 pandemic, providing a historical perspective that may help in making informed trading decisions.
How It Works
- Date Ranges: The script uses predefined date ranges to calculate the highest and lowest price levels before and during the early stages of the COVID-19 pandemic. These ranges are:
- Pre-COVID High: Between January 1, 2020, and March 31, 2020.
- COVID Low: Between March 1, 2020, and March 31, 2020.
- Calculation Method:
- The highest price during the pre-COVID period is tracked and recorded as the "Pre-COVID High".
- The lowest price during the specified COVID period is tracked and recorded as the "COVID Low".
- Visibility Conditions: The script includes logic to ensure that these historical levels are only displayed if they fall within a range close to the current visible price range on the chart. This prevents the indicator from compressing the price scale unduly.
- Adding to Your Chart: To use this indicator, add it to any chart on TradingView. It works best with daily time frames to clearly visualize the impact over these specific months.
- Interpretation:
- The "Pre-COVID High" is marked with a red line and is labeled the first day it becomes applicable.
- The "COVID Low" is marked with a green line and is similarly labeled on its applicable day.
- Trading Strategy Consideration: Traders can use these historical levels as potential support or resistance zones for their trading strategies. These levels can indicate significant price points where the market previously showed strong reactions.