Sigmoidal Candle Count Risk (SCCR)

2 Oca

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:

• 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)
  

Pine Script®

• Additionally, it uses a symmetrically weighted moving average for smoothing.
  

Pine Script®

3 Oca

Sürüm Notları

Made a mistake in the previous description. Here is the corrected sigmoid function:

Pine Script®

Also updated the RiskMeasure() parameters from close>open,open>close to close>close[1],close[1]>close to better reflect increases/decreases in price.

9 Oca

Sürüm Notları

Added a timeframe option. Larger timeframe readings tend to provide more probable setups.

12 Oca

Sürüm Notları

Changed scale from 0-1 to 0-100 and added middle line.

1 May

Sürüm Notları

General script clean up, visual updates, and added description in the script.