🎲 Previous experiments
- Apart from collecting the stats on number of occurrences of HH, HL, LH, LL - this script also keeps track of average ratio for each levels and average bars.
- Based on these data, we try to calculate the next projections including possible bar and price.
- Cloud covering the candles indicate historical levels of average HH, HL, LH, LL projections.
Hover on projection labels to find more details in tooltips.
🎲 Overall method in a nutshell
🎲 Going bit deeper
🎯 Unconfirmed and its projection - Last of the is always unconfirmed. Meaning, it can potentially repaint based on further price movements. But, projection of the unconfirmed will not change as it will be based on previous two - both of which are confirmed.
🎯 Next Projection - Next is projected based on last two - which include last unconfirmed . Hence, these projections can potentially repaint based on the last repaint.
🎯 Historical projections displayed as cloud - Historical projection values are displayed as cloud around .
A cloud above represents area from average lower high range to average higher high range. Cloud color is green if average ratio of high is more than 1. Red Otherwise.
A cloud below represents area from average higher low range to average lower low range. Cloud color is red if average ratio of high is more than 1. Green otherwise
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.