Short Sale Restriction (SSR) Level - Intraday and daily charts

16 apr 2023

This script plots the Short Sale Restriction (SSR) Level relative to the previous day's closing price. It works on any time frame from 1 minute to daily, showing the correct level even during the extended session.

The Short Sale Restriction (SSR) is a rule of the Securities and Exchange Commission (SEC) that restricts traders from short-selling stocks that are rapidly decreasing in value in an attempt to profit from the price drop. The rule was introduced in 2010, after the 2008 financial crisis, to prevent market manipulation and excessive volatility.
The SSR works as follows: when the price of a particular stock drops 10% compared to the previous day's closing price, the SSR is triggered and a temporary limitation is imposed on traders' ability to short-sell that stock for the rest of the trading day and the following day. During the SSR activation period, traders can still short-sell, but only if the sale is "covered" by another long position on the same stock.
Knowledge of the SSR level is especially important for day traders because it helps them to plan their trading strategies in advance, avoiding situations where short-selling becomes more difficult. Additionally, if a stock has exceeded the SSR threshold, traders can expect an increase in price volatility.

26 apr

Note di rilascio

This script is suspended.

Following internal changes in how TradingView provides data from lower timeframes, this script no longer functions properly on the daily timeframe and should therefore be suspended.