Intro Miner Capitulation has been talked about alot recently in the news and on twitter. I wanted to join the in fun and add my own spin on things.
Description This shows the 30 (yellow) and 60 (orange) day moving average of the hash rate of bitcoin. I added an option to show the convergence/divergence of the two moving averages in a visual manner similar to the MACD.
I also added the ability to select both the length and type of MA used in the calculation of the capitulation so you can experiment.
Other additions include bar coloration by trade state, and background highlighting of capitulation periods.
Editable Capitulation/Recovery plots will show clearly when the crosses happen.
The way to replicate my display is to add the indicator twice below the chart and combine in the same pane. First indicator displays the averages by default. The second one you enable convergence/divergence display option and uncheck the rest.
Last I add the indicator one more time and dragged it on chart. Do not combine the scales into one, of else it will ruin the scale (you want them separate scales). Its just showing you possibilities, use whatever works for you!
👍 We hope you enjoyed this indicator and find it useful! We post free crypto analysis, strategies and indicators regularly. This is our 73rd script on Tradingview!
I have followed hashrates manually quite a lot. This is great. Something has to be kept in mind. 1) I view hashrate "capitulations" as miners voting with their funds. They do have legal inside info and connections to whales, so the hope is that their "vote" knows more than we do. However, it is just that, their best-effort vote - they could be wrong. 2) The more people understand this dynamic, the less useful it will be. Use the force wisely :-D
theheirophant
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@nyeates, solid comments, and I agree with you. im glad you like it!!
AltJams
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Very neat, thanks for sharing
theheirophant
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@wroclai, your welcome!
LDAMATO
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Hi can be use for stocks ? Thanks
RyoujinHatake
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this indicator looks very solid, i will test it and share my experiences here, thanks for providing access to the public for free.
theheirophant
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@RyoujinHatake, thanks man! Always appreciate any feedback or constructive ideas/feature requests/etc.
***Just remember to always be on daily resolution (for now) or else the signals will not be correct. ***
I will be releasing a fix soon so that the signals will be based on daily timeframe, even if you are on a lower timeframe.
RyoujinHatake
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@theheirophant, i think you should try one for 4h if possible you are correct with the signals being a mess on 4h or less i can-t really offer any feedback yet but why no signal for the major crash that happened during july 2019? the hash ribbon indicator have the same issue...signals are powerful but they sure do lag a lot
theheirophant
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@RyoujinHatake, Lag is simply the price you pay for confirmation. Thats why it backtests so well. If you are catching the meat of a trend you really dont need to worry about bottoms and tops. Just capture the majority of the movement and enjoy :)
That said I will update this onevery soon with the fix. Thanks for the kind words
RyoujinHatake
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@theheirophant, well you see...the reason i worry about this little detail so much is that my current exchange only allow cross type orders and i don-t really got a lot of capital to backup not saying the indicator is bad or anything of the sort, is great that being said since is daily a lot of volatility can happen on a day that can literally blow my acc to zero, though i guess with such a strong signal is pretty safe using stops, i was wary of them since i know market makers hunt them lol.
that being said, any thoughts of why it didn-t catched the crash of july 2019 for example? i noticed your indicator and the hash ribbon also had this issue so just curious if you find out i would like to know lol