Percentage Retracement from High

Percentage Retracement Indicator

Description
The Percentage Retracement Indicator is a powerful analytical tool that visualizes price pullbacks from historical highs in percentage terms. Unlike traditional retracement tools that overlay on the price chart, this indicator displays the exact percentage drawdown in a dedicated pane below the chart, allowing for precise measurement of market corrections.
Key Features

Clear Visualization: Displays the current percentage retracement from a reference high in a separate pane, making it easy to gauge correction depth
Multiple Reference Points: Choose from ATH (All-Time High), Period High, Weekly High, Monthly High, Quarterly High, or Yearly High as your reference point
Color-Coded Levels: Intuitive color gradient from green (shallow pullbacks) to red and purple (deep corrections)
Customizable Thresholds: Set your own percentage levels for monitoring corrections (-5%, -10%, -20%, etc.)
Time-Based Labels: Clearly labeled percentage levels positioned along the timeline

Trading Applications

Identify Entry Points: Recognize historical pullback patterns to find optimal entry zones
Risk Management: Set stop-losses based on historical retracement behavior
Market Phases Analysis: Distinguish between healthy pullbacks and potential trend reversals
Comparative Analysis: Compare current drawdowns to historical corrections to gauge market sentiment
Volatility Assessment: Track the depth of pullbacks across different market regimes

Benefits
This indicator provides a clear, quantitative view of market corrections that isn't immediately obvious from price action alone. By transforming price movements into percentage terms, it creates an objective framework for analyzing pullbacks across different assets and timeframes.
Perfect for swing traders, position traders, and investors looking to add objective measures for market entry and exit during retracements.