x_candle_high_low_trailing_stop.pine

// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/

// Creates a trailing stop technique using the high or low of a certain number of past candles.
// The numberOfCandles input allows the user to specify how many past candles to use in the calculation.
// The sellShort variable is calculated using the highest function, which gets the highest value in a series 
// over a specified number of past candles. In this case, the series is high and the number of past candles 
// is numberOfCandles. The buyLong variable is calculated using the lowest function, which gets the lowest 
// value in a series over a specified number of past candles. In this case, the series is low and the number
// of past candles is numberOfCandles. The sellShort and buyLong values are plotted on the chart using the plot function.

//@version=5
indicator(title="X Candle High / X Candle Low Trailing Stop Technique", shorttitle="Candle High/Low Trailing Stop", overlay=true)

// Add a script parameter to specify the number of closed candles.
numberOfCandles = input.int(defval=3, title="Number of Closed Candles")

// Calculate the high and low prices of the wick of the specified number of candles
highX = ta.highest(high, numberOfCandles)[1]
lowX = ta.lowest(low, numberOfCandles)[1]

// Plot the high and low prices on the chart
plot(highX, "Sell/Short", color=color.red, linewidth=2)
plot(lowX, "Buy/Long", color=color.green, linewidth=2)