Indicator Overview

The Price ATH Drawdown indicator calculates the percentage decline from its all-time high (ATH), on a gradient from green (near 0% at cycle peaks) through yellow to deep red (extreme drawdowns beyond -80%). This provides a clear measure of market corrections relative to historical highs, highlighting the depth and duration of bear phases. The price is overlaid on a secondary logarithmic axis, allowing direct comparison between absolute levels and relative declines to contextualise cycle maturity and recovery potential.

Dual-Ticker Comparison Logic

The Ticker fields allow you to transition from absolute price analysis to relative strength analysis:

• Single Stock Analysis: If Ticker 2 is left blank, the indicator defaults to measuring Ticker 1against US Dollars. This allows you to analyse the asset's individual performance.

• Pair Trading & Ratios: Enter a symbol in both fields (e.g. NVDA vs. TSLA) to analyse the relationship between the two. The indicator automatically calculates the ratio (Ticker 1 / Ticker 2), helping you identify when one asset is becoming "expensive" or "cheap" relative to its peer, independent of broader market direction.

How To Use

Deep red extremes below often signal capitulation and prime accumulation zones at cycle bottoms, while persistent green near 0% warns of overextension and potential reversals at tops. Traders monitor rapid recoveries from lows as bullish confirmations for entries, or prolonged shallow drawdowns as signs of weakening momentum. Use zero-line crossings to gauge regime shifts, upward breaks indicate building strength, downward ones suggest increasing downside risk, enhancing timing and risk management in multi-year cycles.