OPEN-SOURCE SCRIPT
Normalized Close Indicator
The central aspect of this indicator is the computation of a normalized close price. The normalized close price is computed by first determining the highest and lowest closing prices over a specified historical period. This highest and lowest value form the boundaries of the historical price range.
Once these bounds are established, the current closing price's position within this range is calculated. This is done by subtracting the lowest close from the current close and dividing the result by the range (the highest close minus the lowest close). This yields a value between 0 and 1, which is then multiplied by 100 to provide a percentage. This is not calculating percentile rank, but often it overlaps.
This percentage represents where the current close price stands relative to the historical price range. If the value is near 0, it indicates that the current close price is near the historical low, potentially signaling an oversold condition. Conversely, if the value is near 100, it suggests that the current close price is near the historical high, possibly indicating an overbought condition.
By using this approach, the indicator helps identify points at which the price may be considered relatively high (overbought) or low (oversold) compared to its recent historical range.
Additionally alerts are to switch from long to short and vice versa, for the most part, my strategy that incorporates this indicator is either long or short, sometimes though, the opposite bounds (high level for longs and low level for shorts) are not reached, then stop loss and take profit levels are needed.
I discovered it works fine on markets that spend most of time in a range like BTC/USD, adjustment needs to be done in user inputs and in Pine Script (length) for different exchanges, in current configuration works fine for me on Deribit Perpetuals (BTCUSD.P and ETHUSD.P), on 5 minute and 3 minute timeframes with a stop loss of 1.5% and take profit of 4.5% for BTCUSD.P and 1.7% and 5.1% for ETHUSD.P.
Once these bounds are established, the current closing price's position within this range is calculated. This is done by subtracting the lowest close from the current close and dividing the result by the range (the highest close minus the lowest close). This yields a value between 0 and 1, which is then multiplied by 100 to provide a percentage. This is not calculating percentile rank, but often it overlaps.
This percentage represents where the current close price stands relative to the historical price range. If the value is near 0, it indicates that the current close price is near the historical low, potentially signaling an oversold condition. Conversely, if the value is near 100, it suggests that the current close price is near the historical high, possibly indicating an overbought condition.
By using this approach, the indicator helps identify points at which the price may be considered relatively high (overbought) or low (oversold) compared to its recent historical range.
Additionally alerts are to switch from long to short and vice versa, for the most part, my strategy that incorporates this indicator is either long or short, sometimes though, the opposite bounds (high level for longs and low level for shorts) are not reached, then stop loss and take profit levels are needed.
I discovered it works fine on markets that spend most of time in a range like BTC/USD, adjustment needs to be done in user inputs and in Pine Script (length) for different exchanges, in current configuration works fine for me on Deribit Perpetuals (BTCUSD.P and ETHUSD.P), on 5 minute and 3 minute timeframes with a stop loss of 1.5% and take profit of 4.5% for BTCUSD.P and 1.7% and 5.1% for ETHUSD.P.
開源腳本
在真正的TradingView精神中，這個腳本的作者以開源的方式發佈，這樣交易員可以理解和驗證它。請向作者致敬！您可以免費使用它，但在出版物中再次使用這段程式碼將受到網站規則的約束。 您可以收藏它以在圖表上使用。
想在圖表上使用此腳本？
免責聲明
這些資訊和出版物並不意味著也不構成TradingView提供或認可的金融、投資、交易或其他類型的意見或建議。請在使用條款閱讀更多資訊。