Daily O/C Span (Real Values & SMA Comparison)

This Pine Script indicator helps you visualize and track the "momentum" or "strength" of each trading day, and compares it to a recent average. It essentially measures the net movement of the price from when the market opens to when it closes.


What the Script Does

The script performs the following actions:

Calculates Daily Movement: For every single trading day, it calculates the difference between the closing price and the opening price (Close - Open).

Plots the "Span": These daily differences are plotted as vertical bars (a histogram) in a separate window below your main price chart.
-Green bars mean the stock closed higher than it opened (a strong day).
-Red bars mean the stock closed lower than it opened (a weak day).

Calculates the Average: It calculates the Simple Moving Average (SMA) of these daily spans over an adjustable period (default is 30 days).

Plots the Average Line: A blue line is plotted over the green/red bars, showing the typical magnitude of daily movement.

Displays Comparison: A table in the top-right corner provides a quick, real-time numerical comparison of today's span versus the 30-day average span.


How It Can Improve Trading

This indicator helps you understand the character and conviction of price action, offering several trading insights:

Gauging Momentum: It clarifies whether the stock's moves are generally strong and sustained within a day (large spans) or hesitant (small spans).

Identifying Trends: During an uptrend, you might expect the average span line to be consistently positive (above zero), and vice versa for a downtrend. A positive average span indicates buyers are consistently closing the day stronger than where they started it.

Spotting Reversals: If a stock is in a strong uptrend but you suddenly see a series of large red bars (large negative spans), it could signal a shift in momentum and potential upcoming reversal.

Volatility Context: By comparing the current day's bar to the blue average line, you can quickly determine if today is an unusually strong/weak day relative to recent history.

In short, it helps you see the underlying buyer/seller conviction within each day, making it easier to gauge the overall market sentiment and anticipate potential shifts.