It is tracking Previous candle high and Previous candle low. It is an important script to trail PDH PDL system (and more importantly to create alerts) which is rampantly used by price action traders.
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Previous Script has certain restrictions for intraday. That has been fixed here.
1. So, Firstly scan for stocks that are falling or shooting up more than 6%. I took Dr Reddy because it is the most fallen stock in entire FnO today. You can also do this. Take top 3 and bottom 3 in FNO stocks.
2. Then check them in a smaller timeframe where you can see it is not breaking the previous candle's high and falling (Like Dr Reddy) for a stock which is falling or Vice Versa.
3. If the previous candle's high is broken in case of a falling stock (or, vice versa for a stock that is going up) you long it with a stop loss at the candle's low.
4. After two, three candles if it is in profit, update the stop loss to cost.
Example trade -
CO DRREDDY18DECFUT NFO 0 0.00 2,602.00 +4,300.00 0.00%
Amit_Ghosh
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PS: I made this tiny script because I wanted to create an alert for this method.
When things fall like Dr-Reddy was falling ; Your task is to sell with a stop loss at PCH. Previous Candle High and also when the stop triggers. It triggers a buy too with SL at PCL. #WorksWith Stocks that moved > 6%