Untitled

//@version=5
indicator("10% Drop from Current High", overlay=true)

// Input parameters
dropPercentage = input.float(10, "Drop Percentage", minval=0.1)  // Percentage drop from current high
lookbackPeriod = input.int(20, "Lookback Period")  // Period to calculate the highest high

// Track the highest price within the lookback period
currentHigh = ta.highest(high, lookbackPeriod)

// Calculate the 10% drop level from the current high
dropLevel = currentHigh * (1 - dropPercentage / 100)

// Check if the current price is below or equal to the drop level
priceBelowDropLevel = close <= dropLevel

// Plot the current high and drop level
plot(currentHigh, color=color.blue, linewidth=2, title="Current High")
plot(dropLevel, color=color.red, linewidth=2, title="10% Drop Level")

// Highlight bars where the price has dropped 10% or more from the current high
bgcolor(priceBelowDropLevel ? color.new(color.red, 90) : na, title="Price Below Drop Level")

// Plot a shape when the price touches or drops below the drop level
plotshape(series=priceBelowDropLevel, location=location.belowbar, color=color.red, style=shape.labeldown, size = size.small)