Price Drop Counter

The Price Drop Counter is a very basic statistical indicator.
See it as an analytical tool that tracks how many times an asset's price has dropped by a specified percentage from its recent peak within a defined date range.
The indicator monitors the highest price reached and counts each occurrence when the price falls by your chosen threshold, then resets its peak tracking point after each drop is registered.

Uses

• Volatility Assessment: Measure how frequently significant price corrections occur during specific periods
  
• Market Behavior Analysis: Compare drop frequency across different timeframes or market conditions
  
• Risk Evaluation: Identify assets or periods with higher downside volatility
  
• Historical Pattern Recognition: Study how often major pullbacks happened during bull or bear markets
  
• Backtesting Support: Analyze how your strategy would perform based on the frequency of drawdowns
  

How to use it

• Add the indicator to your TradingView chart
  
• Configure the Percent Drop (%) to define your threshold (default: 10%). The indicator will count each time price falls by this percentage from the most recent high
  
• IMPORTANT Set your Start Date and End Date to analyze a specific period of interest
  
• The blue step-line plot shows the cumulative count of drops within your date range
  
• Adjust the percentage threshold based on your analysis needs - use smaller values (2-5%) for more frequent signals or larger values (15-20%) for major corrections only
  

The counter resets its high-water mark after each qualifying drop, allowing it to track multiple sequential drops within the same period.