OPEN-SOURCE SCRIPT
Updated Trading level
Many people use a 1D chart with either sma20 or ema20 as their short-term trend line. That is based on the assumption that the underlying stock's turnover rate is not lower than 20 days.
That implies that the underlying stock takes at least 20 days of trading to turnover its floating shares. In this case, we can consider a complete turnover of all traders/investors in that particular period.
The turnover rate reflects the underlying stock's character since its participants' collected forces cause the price movement. Here, we use turnover rate estimation to identify a possible trading level of a given underlying stock.
I hope this indicator can help newbies to avoid day trading stock, which might not be appropriate for their level to trade such underlying.
That implies that the underlying stock takes at least 20 days of trading to turnover its floating shares. In this case, we can consider a complete turnover of all traders/investors in that particular period.
The turnover rate reflects the underlying stock's character since its participants' collected forces cause the price movement. Here, we use turnover rate estimation to identify a possible trading level of a given underlying stock.
I hope this indicator can help newbies to avoid day trading stock, which might not be appropriate for their level to trade such underlying.
Release Notes
Add an input option to enter shares float manually in the case for those people who do not have a pro account to use financial data. Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.