DCA Percent Signal

Overview
The DCA Percent Signal Indicator generates buy and sell signals based on percentage drops from all-time highs and percentage gains from lowest lows since ATH. This indicator is designed for pyramiding strategies where each signal represents a configurable percentage of equity allocation.

Definitions

DCA (Dollar-Cost Averaging): An investment strategy where you invest a fixed amount at regular intervals, regardless of price fluctuations. This indicator generates signals for a DCA-style pyramiding approach.

Gann Bar Types: Classification system for price bars based on their relationship to the previous bar:

• Up Bar: High > previous high AND low ≥ previous low
  
• Down Bar: High ≤ previous high AND low < previous low
  
• Inside Bar: High ≤ previous high AND low ≥ previous low
  
• Outside Bar: High > previous high AND low < previous low
  

ATH (All-Time High): The highest price level reached during the entire chart period
ATL (All-Time Low): The lowest price level reached since the most recent ATH
Pyramiding: A trading strategy that adds to positions on favorable price movements
Look-Ahead Bias: Using future information that wouldn't be available in real-time trading

Default Properties

Signal Thresholds:

• Buy Threshold: 10% (triggers every 10% drop from ATH)
  
• Sell Threshold: 30% (triggers every 30% gain from lowest low since ATH)
  

Price Sources:

• ATH Tracking: High (ATH detection)
  
• ATL Tracking: Low (low detection)
  
• Buy Signal Source: Low (buy signals)
  
• Sell Signal Source: High (sell signals)
  

Filter Options:

• Apply Gann Filter: False (disabled by default)
  
• Buy Sets ATL: False (disabled by default)
  

Display Options:

• Show Buy/Sell Signals: True
  
• Show Reference Lines: True
  
• Show Info Table: False
  
• Show Bar Type: False
  

How It Works

Buy Signals: Trigger every 10% drop from the all-time highest price reached
Sell Signals: Trigger every 30% increase from the lowest low since the most recent all-time high
Smart Tracking: Uses configurable price sources for signal generation

Key Features

• Configurable Thresholds: Adjustable buy/sell percentage thresholds (default: 10%/30%)
  
• Separate Price Sources: Independent sources for ATH tracking, ATL tracking, and signal triggers
  
• Configurable Signals: Uses low for buy signals and high for sell signals by default
  
• Optional Gann Filter: Apply Gann bar analysis for additional signal filtering
  
• Optional Buy Sets ATL: Option to set ATL reference point when buy signals occur
  
• Visual Debug: Detailed labels showing signal parameters and values
  

Usage Instructions

1. Apply to Chart: Use on any timeframe (recommended: 1D or higher for better signal quality)
   
2. Risk Management: Adjust thresholds based on your risk tolerance and market volatility
   
3. Signal Analysis: Monitor debug labels for detailed signal information and validation
   

Signal Logic

• Buy signals are blocked when ATH increases to prevent buying at peaks
  
• Sell signals are blocked when ATL decreases to prevent selling at lows
  
• This ensures signals only trigger on subsequent bars, not the same bar that establishes new reference points
  

Buy Signals:

• Calculate drop percentage from ATH to buy signal source
  
• Trigger when drop reaches threshold increments (10%, 20%, 30%, etc.)
  
• Always blocked on ATH bars to prevent buying at peaks
  
• Optional: Also blocked on up/outside bars when Gann filter enabled
  

Sell Signals:

• Calculate gain percentage from lowest low to sell signal source
  
• Trigger when gain reaches threshold increments (30%, 60%, 90%, etc.)
  
• Always blocked when ATL decreases to prevent selling at lows
  
• Optional: Also blocked on down bars when Gann filter enabled
  

Limitations

• Designed for trending markets; may generate many signals in sideways/ranging markets
  
• Requires sufficient price movement to be effective
  
• Not suitable for scalping or very short timeframes
  

Implementation Notes

• Signals use optimistic price sources (low for buys, high for sells), these can be configured to be more conservative
  
• Gann filter provides additional signal filtering based on bar types
  
• Debug information available in data window for real-time analysis
  
• Detailed labels on each signal show ATH, lowest low, buy level, sell level, and drop/gain percentages