Digital Magician: Revealing the Candlestick Principle of Pine Script

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In the magical world of TradingView, Pine Script is like a wizard who can make numbers dance and indicators sing. Today, let's unveil the mysterious veil of this digital magician and explore how it shines on the stage of quantitative trading.

Firstly, it's important to know that Pine Script is not a wizardry that can be cast with a flick of a wand. It is a scientific language based on logic and data. When you apply a Pine Script to a chart on TradingView, the script starts performing its magic on each candlestick. In more technical terms, it uses the open, high, low, close, and volume (OHLCV) of each candlestick to work its magic.

Here is a key magic rule to remember: the rightmost candlestick in the dataset, which is the most recent candlestick, is our "real-time candlestick," while the others are "historical candlesticks". This distinction is important because Pine Script applies different spellcasting methods to these two types of candlesticks. For historical candlesticks, the script only executes once based on their closing price. However, for real-time candlesticks, the script executes every time the data is updated.

Next, let's talk about those magical built-in variables, such as open, high, low, close, and volume. On historical candlesticks, these variables are set to the values of the corresponding candlestick. It's like the script is reviewing history and using past data to predict the future. When the script reaches the current time candlestick, things get interesting. This candlestick keeps updating, like a living being, and every change in price or volume triggers the script to cast its spell again.

Another thing worth noting is the difference between strategies and indicators. By default, strategies are only executed at the close of each real-time candle, while indicators are executed every time there is an update. It's like indicators are sharp and agile wizards, able to react quickly to the latest changes, while strategies are more like wise and steady sorcerers, making judgments only at the end of each time period.

In TradingView's data collection, whenever you scroll the chart to view more historical candles, new candles are loaded. However, loading stops when you reach the maximum number of candles or the end of the data set. This process is like traveling in the river of time, exploring more historical stories.

In real-time candlesticks, the behavior of Pine scripts is quite different from historical candlesticks. Every change in price or volume triggers a reexecution of the script on the real-time candlestick. It's like a magician adjusting his magic circle with each new wave.

Ultimately, when the real-time candlestick comes to an end, it becomes a past real-time candlestick, and the final spell cast by the script determines its ultimate fate. It's like summarizing at the end of each chapter in a story.

First, it is important to understand that the behavior of Pine scripts on real-time candlesticks is distinct from historical candlesticks. When our focus is on the rightmost candlestick on the chart - the real-time candlestick - we enter a whole new realm of Pine scripting. In this realm, the script is no longer simply reviewing history but is dancing in sync with real-time market dynamics.

The two different manifestations of strategy types scripts on real-time candlestick charts are akin to two different casting methods of a magician. By default, these strategies cast their spells only once at the close of each candlestick, but with a simple incantation - setting calc_on_every_tick to true - they can cast their spells with every update of the real-time candlestick, just like indicators.

When the script first encounters a real-time candlestick, it utilizes the current values of built-in variables to create a set of results, much like a painter. However, this magician is not content with a single creation. Whenever there is new market data fluctuation, it swings its wand again, performing a new round of calculations and drawings. It is as if on the real-time trading stage, with each change in the melody, the dancer has to change their steps.

However, in this dance, there is a special process called "rollback". Before each new market data arrives, the script resets its user-defined variables, as if clearing the canvas and preparing to draw a new scene. This process ensures that no matter how the market fluctuates, the script can always start drawing in a clean and consistent state. When the real-time candlestick finally closes, marking the end of a market transaction, the script also performs its final magic, freezing the story of this candlestick.

In the magical world of real-time candlesticks, we can summarize the following points:

The script begins casting spells at the opening of real-time candlesticks and updates with each market update.

Before each market data update, the script's variables go through a "rollback" process, just like a painter cleaning the canvas to prepare for the next painting.

When the real-time candlestick closes, the script submits its final magical creation.

In this process, the updates of real-time candlesticks are not just changes in data, but also opportunities for the magician to cast spells. Whether it's the opening bell of the market or the trader's clicks, they can all serve as signals for the digital magician to wave his wand again.

Through this article, we not only gain a deep understanding of how Pine scripts handle real-time candlesticks in a unique way, but also appreciate the perfect combination of data and technology in quantitative trading. Just like every spell in the magical world, the handling of each real-time candlestick is a precise capture of market dynamics, showcasing the wisdom and skill of the digital magician. On this stage, every data update is a new beginning, and every candlestick has its unique story.

In general, Pine Script behaves like an amazing magic show in TradingView. It looks back on the past on historical candles and deals with the present on real-time candles. Understanding these magical principles can help quantitative traders make better use of this powerful tool and make numbers and charts come alive. Remember, every Pine Script is a magical companion on your quantitative trading journey! So let's follow this digital magician and explore the magical world of TradingView together!