OVERVIEW
This indicator automatically identifies and progressively draws daily percentage levels, normalized to the first market bar.
Percentages are one of the most common ways to measure price movement (outside price itself). Being able to visually reference these levels helps contextualize price action, in addition to giving us a glimpse into how algos might "see" the market.
This script is most useful on charts with smaller time frames (1 to 5 minutes). This is not ideal for medium or larger time frames (greater than 5 minutes).
INPUTS
You can configure:
• Line size, style, colors and maximum length
• Label colors and visibility
• Fractional and intra level visibility
• Bidirectional zone parameters (custom range and extended anomalies)
• Normalization source
• Price Proximity features
• Market Hours and Time Zone
INSPIRATION
Broad Assumptions:
• +/- 70% of days move 1%, 20% of days move 1-2%, and 10% of days have moves exceeding 2%.
• +/- 10-20% of days trend, with moves ≥ 1%.
• All trading strategies are effectively scalping, mean reversion, or trend.
• Humans program algos to capitalize on these assumptions, using percentages to mange / execute trades.