OPEN-SOURCE SCRIPT

Trend Continuation Ratio

This TradingView indicator calculates the likelihood of consecutive bullish or bearish days over a specified period, giving insights into day-to-day continuation patterns within the market.

How It Works

Period Length Input:

  • The user sets the period length (e.g., 20 days) to analyze.
  • After each period, the counts reset, allowing fresh data for each new interval.


Bullish and Bearish Day Definitions:

  • A day is considered bullish if the closing price is higher than the opening price.
  • A day is considered bearish if the closing price is lower than the opening price.


Count Tracking:

  • Within each specified period, the indicator tracks:

  • Total Bullish Days: The number of days where the close is greater than the open.
  • Total Bearish Days: The number of days where the close is less than the open.

Bullish to Bullish Continuations: Counts each instance where a bullish day is followed by another bullish day.
Bearish to Bearish Continuations: Counts each instance where a bearish day is followed by another bearish day.

Calculating Continuation Ratios:

The Bullish Continuation Ratio is calculated as the percentage of bullish days that were followed by another bullish day:

Bullish Continuation Ratio = (Bullish to Bullish Continuations /Total Bullish Days)×100

Bullish Continuation Ratio=( Total Bullish Days/Bullish to Bullish Continuations )×100

The Bearish Continuation Ratio is the percentage of bearish days followed by another bearish day:

Bearish Continuation Ratio = (Bearish to Bearish Continuations/Total Bearish Days)×100
Bearish Continuation Ratio=( Total Bearish Days/Bearish to Bearish Continuations​ )×100

Display on Chart:

The indicator displays a table in the top-right corner of the chart with:
  • Bullish Continuation Ratio (%): Percentage of bullish days that led to another bullish day within the period.
  • Bearish Continuation Ratio (%): Percentage of bearish days that led to another bearish day within the period.


Usage Insights
  • High Ratios: If the bullish or bearish continuation ratio is high, it suggests a trend where bullish/bearish days often lead to similar days, indicating possible momentum.

  • Low Ratios: Low continuation ratios indicate frequent reversals, which could suggest a range-bound or volatile market.


This indicator is helpful for assessing short-term trend continuation tendencies, allowing traders to gauge whether they are more likely to see follow-through on bullish or bearish days within a chosen timeframe.
biasChart patternsCyclestrend

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