Those who follow me on Twitter may have seen this chart pop up on occasion so I thought I’d share it with you this weekend. It simply shows how deep the current correction is in percentage terms from the high. It is designed for use on daily charts during intermediate term pullbacks. The study also has a bear mode that measures corrections up when the trend is down. To initialize the study, the user enters the start date if the current prevailing trend, select bull or bear mode, and the spacing of the percentage lines. In the picture below, I started the study at the March lows of last year and used a two percent spacing. Also pictured is my version of the Renko chart which will be released to the Pro Subscribers in a forthcoming update. Best of luck in your trading. -Eric

Percent Correction

# TS_PercentCorrection
# http://www.thinkscripter.com
# thinkscripter@gmail.com
# Last Update 22 May 2010

# Designed for use on daily charts

input startDateYYYYMMDD = 20100101;
input mode = {default Bull, Bear};
input spacing = 1.0;

def start = if getYyyyMmDd() > startDateYYYYMMDD then 1 else 0;

rec highPrint = compoundValue(1, if start then if high > highPrint[1] then high else highPrint[1] else high , high);
rec lowPrint = compoundValue(1, if start then if low < lowPrint[1] then low else lowPrint[1] else low , low);

def onePercent = if mode == mode.Bull then highPrint * 0.01 else -lowPrint * 0.01;
def base = if mode == mode.Bull then highPrint else lowPrint;

plot hp = if start then base else double.nan;
plot p1 = if start then base - onePercent * 1 * spacing else double.nan;
plot p2 = if start then base - onePercent * 2 * spacing else double.nan;
plot p3 = if start then base - onePercent * 3 * spacing else double.nan;
plot p4 = if start then base - onePercent * 4 * spacing else double.nan;
plot p5 = if start then base - onePercent * 5 * spacing else double.nan;
plot p6 = if start then base - onePercent * 6 * spacing else double.nan;
plot p7 = if start then base - onePercent * 7 * spacing else double.nan;
plot p8 = if start then base - onePercent * 8 * spacing else double.nan;
plot p9 = if start then base - onePercent * 9 * spacing else double.nan;
plot p10 = if start then base - onePercent * 10 * spacing else double.nan;

hp.HideBubble();
p1.HideBubble();
p2.HideBubble();
p3.HideBubble();
p4.HideBubble();
p5.HideBubble();
p6.HideBubble();
p7.HideBubble();
p8.HideBubble();
p9.HideBubble();
p10.HideBubble();

AddChartBubble(yes, if IsNaN(close[-1]) then p1 else double.nan, concat("-", concat(1.0 * spacing, "%")), color.white);
AddChartBubble(yes,  if IsNaN(close[-1]) then p2 else double.nan, concat("-", concat(2.0 * spacing, "%")), color.white);
AddChartBubble(yes, if IsNaN(close[-1]) then  p3 else double.nan, concat("-", concat(3 * spacing, "%")), color.white);
AddChartBubble(yes, if IsNaN(close[-1]) then  p4 else double.nan, concat("-", concat(4 * spacing, "%")), color.white);
AddChartBubble(yes, if IsNaN(close[-1]) then  p5 else double.nan, concat("-", concat(5 * spacing, "%")), color.white);
AddChartBubble(yes, if IsNaN(close[-1]) then  p6 else double.nan, concat("-", concat(6 * spacing, "%")), color.white);
AddChartBubble(yes, if IsNaN(close[-1]) then  p7 else double.nan, concat("-", concat(7 * spacing, "%")), color.white);
AddChartBubble(yes,  if IsNaN(close[-1]) then p8 else double.nan, concat("-", concat(8 * spacing, "%")), color.white);
AddChartBubble(yes, if IsNaN(close[-1]) then  p9 else double.nan, concat("-", concat(9 * spacing, "%")), color.white);
AddChartBubble(yes,  if IsNaN(close[-1]) then p10 else double.nan, concat("-", concat(10 * spacing, "%")), color.white);

hp.HideTitle();
p1.HideTitle();
p2.HideTitle();
p3.HideTitle();
p4.HideTitle();
p5.HideTitle();
p6.HideTitle();
p7.HideTitle();
p8.HideTitle();
p9.HideTitle();
p10.HideTitle();