Bloodbath Indicator

This indicator identifies days where the number of new 52-week lows for all issues exceeds a user-defined threshold (default 4%), potentially signaling a market downturn. The background of the chart turns red on such days, providing a visual alert to traders following the "Bloodbath Sidestepping" strategy.

Based on: "THE RIPPLE EFFECT OF DAILY NEW LOWS," By Ralph Vince and Larry Williams, 2024 Charles H. Dow Award Winner

threshold: Percentage of issues making new 52-week lows to trigger the indicator (default: 4.0).


Usage:
The chart background will turn red on days exceeding the threshold of new 52-week lows.

Limitations:
This indicator relies on historical data and doesn't guarantee future performance.
It focuses solely on new 52-week lows and may miss other market signals.
The strategy may generate false positives and requires further analysis before trading decisions.

Disclaimer:
This script is for informational purposes only and should not be considered financial advice. Always conduct your own research before making any trading decisions.