ucsgears

Rob Hoffman's Inventory Retracement Bar - by UCSgears

Claims by Rob Hoffman
Developed and used to win trading competitions around the world, the Hoffman Inventory Retracement Trade is quickly becoming one of the most popular ways to identify where short-term counter trend institutional inventory has subsided and when it’s time to re-enter into a trade’s original trend direction.

I have not included the TREND condition.

- Enjoy


Rob Hoffman Inventory Retracement Bar - http://tradersonline-mag.com/01_ezine/01...


Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

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Want to use this script on a chart?
study(title="UCS_Rob Hoffman_Inventory Retracement Bar", shorttitle="UCS_RH_IRB", precision=2, overlay=true)

z = input(45, title="Inventory Retracement Percentage %", maxval=100)

// Candle Range
a = abs(high - low)
// Candle Body
b = abs(close - open)
// Percent to Decimal
c = z/100

// Range Verification 
rv = b < c*a

// Price Level for Retracement
x = low + (c * a)
y = high - (c * a)

sl = rv == 1 and high > y and close < y and open < y 
ss = rv == 1 and low < x and close > x and open > x 

// Line Definition
li = sl ? y : ss ? x : (x+y)/2

// Plot Statement
plotshape(sl, style=shape.triangledown, location=location.abovebar, color=red, title = "Long Bar", transp = 0)
plotshape(ss, style=shape.triangleup, location=location.belowbar, color=green, title = "Short Bar", transp = 0)

plot(li, style = line, color = blue, title = "Inventory Bar Retracement Price Line")