Salience Theory Crypto Returns (AiBitcoinTrend)The Salience Theory Crypto Returns Indicator is a sophisticated tool rooted in behavioral finance, designed to identify trading opportunities in the cryptocurrency market. Based on research by Bordalo et al. (2012) and extended by Cai and Zhao (2022), it leverages salience theory—the tendency of investors, particularly retail traders, to overemphasize standout returns.
In the crypto market, dominated by sentiment-driven retail investors, salience effects are amplified. Attention disproportionately focused on certain cryptocurrencies often leads to temporary price surges, followed by reversals as the market stabilizes. This indicator quantifies these effects using a relative return salience measure, enabling traders to capitalize on price reversals and trends, offering a clear edge in navigating the volatile crypto landscape.
👽 How the Indicator Works
Salience Measure Calculation :
👾 The indicator calculates how much each cryptocurrency's return deviates from the average return of all cryptos over the selected ranking period (e.g., 21 days).
👾 This deviation is the salience measure.
👾 The more a return stands out (salient outcome), the higher the salience measure.
Ranking:
👾 Cryptos are ranked in ascending order based on their salience measures.
👾 Rank 1 (lowest salience) means the crypto is closer to the average return and is more predictable.
👾 Higher ranks indicate greater deviation and unpredictability.
Color Interpretation:
👾 Green: Low salience (closer to average) – Trending or Predictable.
👾 Red/Orange: High salience (far from average) – Overpriced/Unpredictable.
👾 Text Gradient (Teal to Light Blue): Helps visualize potential opportunities for mean reversion trades (i.e., cryptos that may return to equilibrium).
👽 Core Features
Salience Measure Calculation
The indicator calculates the salience measure for each cryptocurrency by evaluating how much its return deviates from the average market return over a user-defined ranking period. This measure helps identify which assets are trending predictably and which are likely to experience a reversal.
Dynamic Ranking System
Cryptocurrencies are dynamically ranked based on their salience measures. The ranking helps differentiate between:
Low Salience Cryptos (Green): These are trending or predictable assets.
High Salience Cryptos (Red): These are overpriced or deviating significantly from the average, signaling potential reversals.
👽 Deep Dive into the Core Mathematics
Salience Theory in Action
Salience theory explains how investors, particularly in the crypto market, tend to prefer assets with standout returns (salient outcomes). This behavior often leads to overpricing of assets with high positive returns and underpricing of those with standout negative returns. The indicator captures these deviations to anticipate mean reversions or trend continuations.
Salience Measure Calculation
// Calculate the average return
avgReturn = array.avg(returns)
// Calculate salience measure for each symbol
salienceMeasures = array.new_float()
for i = 0 to array.size(returns) - 1
ret = array.get(returns, i)
salienceMeasure = math.abs(ret - avgReturn) / (math.abs(ret) + math.abs(avgReturn) + 0.1)
array.push(salienceMeasures, salienceMeasure)
Dynamic Ranking
Cryptos are ranked in ascending order based on their salience measures:
Low Ranks: Cryptos with low salience (predictable, trending).
High Ranks: Cryptos with high salience (unpredictable, likely to revert).
👽 Applications
👾 Trend Identification
Identify cryptocurrencies that are currently trending with low salience measures (green). These assets are likely to continue their current direction, making them good candidates for trend-following strategies.
👾 Mean Reversion Trading
Cryptos with high salience measures (red to light blue) may be poised for a mean reversion. These assets are likely to correct back towards the market average.
👾 Reversal Signals
Anticipate potential reversals by focusing on high-ranked cryptos (red). These assets exhibit significant deviation and are prone to price corrections.
👽 Why It Works in Crypto
The cryptocurrency market is dominated by retail investors prone to sentiment-driven behavior. This leads to exaggerated price movements, making the salience effect a powerful predictor of reversals.
👽 Indicator Settings
👾 Ranking Period : Number of bars used to calculate the average return and salience measure.
Higher Values: Smooth out short-term volatility.
Lower Values: Make the ranking more sensitive to recent price movements.
👾 Number of Quantiles : Divide ranked assets into quantile groups (e.g., quintiles).
Higher Values: More detailed segmentation (deciles, percentiles).
Lower Values: Broader grouping (quintiles, quartiles).
👾 Portfolio Percentage : Percentage of the portfolio allocated to each selected asset.
Enter a percentage (e.g., 20 for 20%), automatically converted to a decimal (e.g., 0.20).
Disclaimer: This information is for entertainment purposes only and does not constitute financial advice. Please consult with a qualified financial advisor before making any investment decisions.
Sentiment
Loacally Weighted MA (LWMA) Direction HistogramThe Locally Weighted Moving Average (LWMA) Direction Histogram indicator is designed to provide traders with a visual representation of the price momentum and trend direction. This Pine Script, written in version 6, calculates an LWMA by assigning higher weights to recent data points, emphasizing the most current market movements. The script incorporates user-defined input parameters, such as the LWMA length and a direction lookback period, making it flexible to adapt to various trading strategies and preferences.
The histogram visually represents the difference between the current LWMA and a previous LWMA value (based on the lookback period). Positive values are colored blue, indicating upward momentum, while negative values are yellow, signaling downward movement. Additionally, the script colors candlesticks according to the histogram's value, enhancing clarity for users analyzing market trends. The LWMA line itself is plotted on the chart but hidden by default, enabling traders to toggle its visibility as needed. This blend of histogram and candlestick visualization offers a comprehensive tool for identifying shifts in momentum and potential trading opportunities.
Zero-Lag MA CandlesThe Zero-Lag MA Candles indicator combines the efficiency of a Zero-Lag Moving Average (ZLMA) with dynamic candlestick coloring to provide a clear visual representation of market trends. By leveraging a dual EMA-based calculation, the ZLMA achieves reduced lag, enhancing its responsiveness to price changes. The indicator plots candles on the chart with colors determined by the trend direction of the ZLMA over a user-defined lookback period. Blue candles signify an uptrend, while yellow candles indicate a downtrend, offering traders an intuitive way to identify market sentiment.
This indicator is particularly useful for trend-following strategies, as the crossover and crossunder between the ZLMA and the standard EMA highlight potential reversal points or trend continuation zones. With customizable inputs for ZLMA length, trend lookback period, and color schemes, it caters to diverse trading preferences. Its ability to plot directly on the chart ensures seamless integration with other analysis tools, making it a valuable addition to a trader's toolkit.
Happy trading...
MA Direction Histogram
The MA Direction Histogram is a simple yet powerful tool for visualizing the momentum of a moving average (MA). It highlights whether the MA is trending up or down, making it ideal for identifying market direction quickly.
Key Features:
1. Custom MA Options: Choose from SMA, EMA, WMA, VWMA, or HMA for flexible analysis.
2. Momentum Visualization: Bars show the difference between the MA and its value from a lookback period.
- Blue Bars: Upward momentum.
- Yellow Bars: Downward momentum.
3. Easy Customization: Adjust the MA length, lookback period, and data source.
How to Use:
- Confirm Trends: Positive bars indicate uptrends; negative bars suggest downtrends.
- *Spot Reversals: Look for bar color changes as potential reversal signals.
Compact, intuitive, and versatile, the "MA Direction Histogram" helps traders stay aligned with market momentum. Perfect for trend-based strategies!
Coinbase Premium Index (Any Symbol)The Coinbase Premium Index provides a valuable insight into market dynamics by calculating the price premium between Coinbase (USD pairs) and Binance (USDT pairs). A positive premium typically indicates heavy buying pressure on Coinbase, often coinciding with upward price trends on lower timeframes. Conversely, a negative premium suggests selling pressure or weaker demand on Coinbase compared to Binance.
** Key Features: **
**Dynamic Symbol Detection**: Automatically detects the current chart symbol and adapts the premium calculation accordingly.
**Customizable Moving Averages**:
Select between SMA (Simple Moving Average) or EMA (Exponential Moving Average).
Adjust the moving average period to suit your trading strategy (default: SMA with 50 periods).
**Error Handling for Missing Data**:
Displays "Symbol not on Coinbase" when the cryptocurrency is unavailable on Coinbase.
Plots zero-value columns in light grey for unsupported symbols.
**Visual Representation**:
Premium values are displayed as columns: green for positive premiums, red for negative premiums.
A moving average line in light grey helps highlight trends.
Zero Line: A horizontal dashed line is included as a reference point.
** Why Use This Script?**
The Coinbase Premium Index helps traders identify moments of increased buying pressure among U.S. investors, often indicative of bullish momentum on lower timeframes. Use this tool to monitor premium dynamics and gain a clearer understanding of market sentiment across major exchanges.
** How to Use: **
Add this script to your TradingView chart.
Adjust the moving average type and period through the input menu.
Use the premium columns and moving averages to identify potential price trends and validate exchange-specific trading opportunities.
Enhanced Gap Up/Down AnalysisThis Pine Script indicator, titled "Enhanced Gap Up/Down Analysis", is designed to visually analyze the percentage gaps between the current day's opening price and the previous day's closing price. It provides valuable insights into market behavior by categorizing gaps and coloring them based on specific conditions.
Key Features:
Bar Coloring Based on Conditions:
Gap-Up Days:
Green if the day closes higher than it opens.
Red if the day closes lower than it opens.
Gap-Down Days:
Red if the day closes lower than it opens.
Green if the day closes higher than it opens.
The bar's position reflects the gap percentage (positive values for gap-ups above the X-axis, negative values for gap-downs below the X-axis).
Gap Size Thresholds:
Users can define small and moderate gap thresholds to categorize gaps:
Small Gaps: Transparent color.
Moderate Gaps: Opaque color.
Large Gaps: Fully visible color.
Ensures small gaps are less than moderate gaps with validation logic.
Filter Gaps by Percentage:
Includes filters to show gaps only within a user-defined range (minFilterGap to maxFilterGap).
Histogram Visualization:
Plots the gap percentages as a histogram for easy visual analysis:
Positive bars for gap-ups.
Negative bars for gap-downs.
Alerts for Large Gaps:
Alerts notify when a gap exceeds the moderate threshold in either direction.
Use Cases:
Identify Market Sentiment:
Quickly assess whether gap-ups or gap-downs dominate.
Analyze whether gaps tend to follow through or reverse by observing bar colors.
Filter Relevant Gaps:
Focus on significant gaps (e.g., only gaps greater than 2%).
Visual Aid for Trading:
Helps traders detect patterns in market gaps and price movement relationships (e.g., gaps and reversals).
Customizable Inputs:
Small and Moderate Gap Thresholds: Define gap categories.
Gap Filter Range: Control which gaps to display.
Alerts: Get notified of significant gaps.
This tool is particularly useful for traders analyzing price gaps and their implications for market trends or reversals.
Psychological Levels- Rounding Numbers Psychological Levels Indicator
Overview:
The Psychological Levels Indicator automatically identifies and plots significant price levels based on psychological thresholds, which are key areas where market participants often focus their attention. These levels act as potential support or resistance zones due to human behavioral tendencies to round off numbers. This indicator dynamically adjusts the levels based on the stock's price range and ensures seamless visibility across the chart.
Key Features:
Dynamic Step Sizes:
The indicator adjusts the levels dynamically based on the stock price:
For prices below 500: Levels are spaced at 10.
For prices between 500 and 3000: Levels are spaced at 50, 100, and 1000.
For prices between 3000 and 10,000: Levels are spaced at 100 and 1000.
For prices above 10,000: Levels are spaced at 500 and 1000.
Extended Visibility:
The plotted levels are extended across the entire chart for improved visualization, ensuring traders can easily monitor these critical zones over time.
Customization Options:
Line Color: Choose the color for the levels to suit your charting style.
Line Style: Select from solid, dashed, or dotted lines.
Line Width: Adjust the thickness of the lines for better clarity.
Clean and Efficient Design:
The indicator only plots levels relevant to the visible chart range, avoiding unnecessary clutter and ensuring a clean workspace.
How It Works:
It calculates the relevant step sizes based on the price:
Smaller step sizes for lower-priced stocks.
Larger step sizes for higher-priced stocks.
Primary, secondary, and (if applicable) tertiary levels are plotted dynamically:
Primary Levels: The most granular levels based on the stock price.
Secondary Levels: Higher-order levels for broader significance.
Tertiary Levels: Additional levels for lower-priced stocks to enhance detail.
These levels are plotted across the chart, allowing traders to visualize key psychological areas effortlessly.
Use Cases:
Day Trading: Identify potential intraday support and resistance levels.
Swing Trading: Recognize key price zones where trends may pause or reverse.
Long-Term Investing: Gain insights into significant price zones for entry or exit strategies.
Ticker Tape with Multiple Inputs# Ticker Tape
A customizable multi-symbol price tracker that displays real-time price information in a scrolling ticker format, similar to financial news tickers.
This indicator is inspired from Tradingciew's default tickertape indicator with changes in the way inputs are given.
### Overview
This indicator allows you to monitor up to 15 different symbols simultaneously across any supported exchanges on TradingView. It displays essential price information including current price, price change, and percentage change in an easy-to-read format at the bottom of your chart.
### Features
• Monitor up to 15 different symbols simultaneously
• Support for any exchange available on TradingView
• Real-time price updates
• Color-coded price changes (green for increase, red for decrease)
• Smooth scrolling animation (can be disabled)
• Customizable scroll speed and position offset
### Input Parameters
#### Ticker Tape Controls
• Running: Enable/disable the scrolling animation
• Offset: Adjust the starting position of the ticker tape
#### Symbol Settings
• Exchange (1-15): Enter the exchange name (e.g., NSE, BINANCE, NYSE)
• Symbol (1-15): Enter the symbol name (e.g., BANKNIFTY, RELIANCE, BTCUSDT)
### Display Format
For each symbol, the ticker shows:
1. Symbol Name
2. Current Price
3. Price Change (Absolute and Percentage)
### Example Usage
Input Settings:
Exchange 1: NSE
Symbol 1: BANKNIFTY
Exchange 2: NSE
Symbol 2: RELIANCE
The ticker tape will display:
`NIFTY BANK 46750.00 +350.45 (0.75%) | RELIANCE 2456.85 -12.40 (-0.50%) |`
### Use Cases
1. Multi-Market Monitoring: Track different markets simultaneously without switching between charts
2. Portfolio Tracking: Monitor all your positions in real-time
### Tips for Best Use
1. Group related symbols together for easier monitoring
2. Use the offset parameter to position important symbols in your preferred viewing area
3. Disable scrolling if you prefer a static display
4. Leave exchange field empty for default exchange symbols
### Notes
• Price updates occur in real-time during market hours
• Color coding helps quickly identify price direction
• The indicator adapts to any chart timeframe
• Empty input pairs are automatically skipped
### Performance Considerations
The indicator is optimized for efficiency, but monitoring too many high-frequency symbols might impact chart performance. It's recommended to use only the symbols you actively need to monitor.
Version: 2.0 Stock_Cloud
Last Updated: December 2024
[blackcat] L1 Banker Move█ OVERVIEW
The Pine Script is an indicator designed to analyze market signals for institutional and short-term investors. It calculates and plots three main signals: Institutional Signal, Institutional Build, and Short-Term Investor Signal. The script uses a combination of price, volume, and moving average data to generate these signals, which can help traders identify potential buying or selling opportunities.
█ LOGICAL FRAMEWORK
The script is structured into several main sections:
1 — Input Parameters
The script does not explicitly define any input parameters, relying on default values for calculations.
2 — Custom Functions
• reference_value(values, length) : Retrieves the first non-NA value from a specified number of past values.
• calculate_institutional_and_short_term_signals(low, close, open, volume) : Calculates the institutional and short-term investor signals based on price, volume, and moving average data.
3 — Calculations
• Price and Volume Metrics: The script calculates various smoothed price changes, lowest and highest values over different periods, and volume-weighted prices.
• Moving Averages: It computes simple moving averages (SMA) and exponential moving averages (EMA) for different periods.
• RSI Calculation: The script calculates a custom RSI for different periods.
• Signal Generation: It generates the institutional and short-term investor signals based on the calculated metrics.
4 — Plotting
The script plots the three main signals on the chart using the plot function.
The flow of data and logic is as follows:
• The reference_value function is used to find reference values for calculations.
• The calculate_institutional_and_short_term_signals function performs the core calculations and returns the institutional and short-term investor signals.
• The main script calls this function and plots the results.
█ CUSTOM FUNCTIONS
1 — reference_value(values, length)
• Purpose : Retrieves the first non-NA value from a specified number of past values.
• Parameters :
• values: An array of values.
• length: The number of past values to consider.
• Return Value : The first non-NA value found or na if no valid value is found.
• Functionality : Iterates through the specified number of past values and returns the first non-NA value.
2 — calculate_institutional_and_short_term_signals(low, close, open, volume)
• Purpose : Calculates the institutional and short-term investor signals based on price, volume, and moving average data.
• Parameters :
• low: Low price series.
• close: Close price series.
• open: Open price series.
• volume: Volume series.
• Return Values :
• institutional_signal: The institutional signal.
• institutional_build: The institutional build signal.
• short_term_investor_signal: The short-term investor signal.
• Functionality :
• Computes various price and volume metrics.
• Calculates moving averages and volume-weighted prices.
• Generates the institutional and short-term investor signals based on these metrics.
█ KEY POINTS AND TECHNIQUES
1 — Advanced Pine Script Features
• Custom Functions: The script defines and uses custom functions to encapsulate complex logic.
• Conditional Statements: Extensive use of iff and if statements to control the flow of calculations.
• Looping Constructs: The for loop in reference_value function to iterate through past values.
• Exponential Moving Averages (EMA): Used to smooth out price and signal changes.
• Volume-Weighted Price (VWP): Calculated to factor in volume in price analysis.
• Custom RSI Calculation: A custom RSI formula is used, which differs from the standard RSI calculation.
2 — Optimization Techniques
• Efficient Data Handling: The reference_value function efficiently finds the first non-NA value without unnecessary computations.
• Smoothed Signals: Using EMAs to smooth out noisy signals for better trend identification.
3 — Unique Approaches
• Combination of Metrics: The script combines multiple metrics (price, volume, moving averages, and custom RSI) to generate comprehensive signals.
• Institutional Build Signal: A unique approach to detect institutional activity by comparing current price levels with historical lows and smoothed price changes.
█ EXTENDED KNOWLEDGE AND APPLICATIONS
1 — Potential Modifications
• Input Parameters: Add input parameters to allow users to customize the lengths and thresholds used in the calculations.
• Strategy Version: Convert the indicator into a strategy by adding buy/sell signals based on the generated signals.
• Additional Indicators: Integrate other technical indicators (e.g., MACD, Bollinger Bands) to enhance the signal generation process.
2 — Similar Trading Scenarios
• Institutional Activity Analysis: Use similar techniques to analyze institutional activity in other markets or assets.
• Volume Analysis: Apply the volume-weighted price and volume analysis to identify significant price movements.
• Multi-Timeframe Analysis: Extend the script to analyze signals across multiple timeframes for a more robust trading strategy.
3 — Related Pine Script Concepts
• Pine Script Functions: Understanding how to define and use custom functions effectively.
• Conditional Logic: Mastering the use of iff and if statements for complex logic.
• Looping Constructs: Familiarity with for loops for iterating through data.
• Moving Averages: Knowledge of different types of moving averages and their applications.
• Volume Analysis: Techniques for incorporating volume data into price analysis.
squeeze candles with volume Function :
This indicator was designed to detect specific candles called “squeeze”. These candles are characterized by a relatively small body (the difference between the opening and closing price) and long shadows (the distance between the high and low prices), accompanied by significant volume. They often indicate a period of increased volatility or a potential trend reversal.
Use :
Visual detection:
Candles identified as "squeeze" are highlighted in red on the chart.
An “S” icon appears above each detected squeeze candle.
Alerts:
The indicator emits an audible and visual alert when a squeeze candle with high volume is detected (if alerts are enabled).
Market analysis:
This indicator is particularly useful for identifying trading opportunities during periods when the market is showing signs of compression or impending volatility.
Customizable settings:
Minimum volume: Defines the threshold at which the volume is considered high.
Maximum body/shadow ratio: Allows you to adjust the sensitivity to detect squeeze candles (the lower the ratio, the smaller the detected candles will have in relation to their shadows).
Benefits :
Provides accurate alerts on key market candles.
Helps anticipate large movements through analysis of volume and candle characteristics.
Adaptable to different strategies thanks to adjustable parameters.
Ideal for:
Traders who want to identify areas of potential volatility or reversal signals in the market, regardless of the asset or time frame used.
US Recessions OverlayThe US Recessions Overlay indicator highlights the periods of US economic recessions directly on your TradingView chart. Using historical data from the Great Depression to the present, it provides a visual representation of recessions as transparent red backgrounds. This can help traders and analysts correlate market movements with historical economic downturns.
Features:
- Displays US recessions since the Great Depression (1929) as shaded areas.
- Automatically adjusts the background shading to match the date ranges of historical recessions.
- A simple and effective way to observe market behavior during recessionary periods.
- Fully customizable to include new recession periods or modify transparency levels.
How to Use:
Apply the indicator to any chart. Recession periods will appear as red-shaded backgrounds, providing a clear visual cue for market behavior during those times.
Use Case:
Ideal for traders, economists, and market historians who wish to study the impact of recessions on financial markets.
Candled LWMA (Loacally Weighted MA)The Locally Weighted Moving Average (LWMA) is a type of moving average that emphasizes recent data points by assigning them higher weights compared to older values. Unlike the Simple Moving Average (SMA), which treats all data points equally, or the Exponential Moving Average (EMA), which uses a fixed weighting factor, the LWMA applies a linear weighting scheme. This means that the most recent prices contribute more significantly to the average, making the LWMA more responsive to price changes while retaining a smooth curve.
In trading, the LWMA is particularly useful for identifying trends and detecting price reversals with reduced lag. By giving more importance to the latest prices, it provides a clearer picture of the current market dynamics. Traders often use the LWMA in combination with other indicators to confirm trends or spot potential entry and exit points. The adjustable length parameter allows for fine-tuning the indicator to match different market conditions and trading styles. Its ability to adapt to recent price behavior makes it a valuable tool for both short-term and long-term traders.
RSI to Price RatioThe RSI to Price Ratio is a technical indicator designed to provide traders with a unique perspective by analyzing the relationship between the Relative Strength Index (RSI) and the underlying asset's price. Unlike traditional RSI, which is viewed on a scale from 0 to 100, this indicator normalizes the RSI by dividing it by the price, resulting in a dynamic ratio that adjusts to price movements. The histogram format makes it easy to visualize fluctuations, with distinct color coding for overbought (red), oversold (green), and neutral (blue) conditions.
This indicator excels in helping traders identify potential reversal zones and trend continuation signals. Overbought and oversold levels are dynamically adjusted using the price source, making the indicator more adaptive to market conditions. Additionally, the ability to plot these OB/OS thresholds as lines on the histogram ensures traders can quickly assess whether the market is overstretched in either direction. By combining RSI’s momentum analysis with price normalization, this tool is particularly suited for traders who value precision and nuanced insights into market behavior. It can be used as a standalone indicator or in conjunction with other tools to refine entry and exit strategies.
Volume Weighted Jurik Moving AverageThe Jurik Moving Average (JMA) is a smoothing indicator that is designed to improve upon traditional moving averages by reducing lag while enhancing responsiveness to price movements. It was created by Jurik Research and is often used to track trends with greater accuracy and minimal delay. The JMA is based on a combination of **exponential smoothing** and **phase adjustments**, making it more adaptable to varying market conditions compared to standard moving averages like SMA (Simple Moving Average) or EMA (Exponential Moving Average).
The core advantage of the JMA lies in its ability to adjust to price changes without excessively lagging, which is a common issue with traditional moving averages. It incorporates a **phase parameter** that can be adjusted to smooth out the signal further or make it more responsive to recent price action. This phase adjustment allows traders to fine-tune the JMA's sensitivity to the market, optimizing it for different timeframes and trading strategies.
How JMA Works and Benefits of Adding Volume Weight
The JMA works by applying a **smoothing process** to price data while allowing for adjustments through its phase and power parameters. These parameters help control the degree of smoothness and responsiveness. The result is a curve that follows price trends closely but with less lag than traditional moving averages.
Adding **volume weighting** to the JMA enhances its ability to reflect market activity more accurately. Just like the **Volume-Weighted Moving Average (VWMA)**, volume-weighting adjusts the moving average based on the strength of trading volume, meaning that price movements with higher volume will have a greater influence on the JMA. This can help traders identify trends that are supported by significant market participation, making the moving average more reliable.
The benefit of a volume-weighted JMA is that it responds more effectively to price movements that occur during periods of high trading volume, which are often considered more significant. This can help traders avoid false signals that may occur during low-volume periods when price changes may not reflect true market sentiment. By incorporating volume into the calculation, the JMA becomes more aligned with real market conditions, enhancing its effectiveness for trend identification and decision-making.
Bitcoin Events HistoryWith this tool, you can travel back to Bitcoin’s very first price quote and retrace its entire history directly on your chart. Major events are plotted as labels or markers, providing context for how significant moments shaped Bitcoin’s journey.
Key Features
Comprehensive Event Coverage: From Bitcoin’s inception to the most recent updates.
Custom View: Change label colors, styles, sizes, and fonts using the script’s settings.
Regular Updates: New events are added regularly to keep the history current.
Replay History
Use Bar Replay Mode to step through Bitcoin’s price history and see events unfold in sequence.
Follow the on-screen instructions for a more immersive experience.
Community Contributions
If you notice a significant event missing or misplaced on a particular date, feel free to leave a comment! Your suggestions will be considered for the next update.
To all Bitcoin enthusiasts, traders, and anyone eager to explore the history of cryptocurrency from its inception, I hope you enjoy this indicator :)
Correlation Coefficient [Giang]### **Introduction to the "Correlation Coefficient" Indicator**
#### **Idea behind the Indicator**
The "Correlation Coefficient" indicator was developed to analyze the linear relationship between Bitcoin (**BTCUSD**) and other important economic indices or financial assets, such as:
- **SPX** (S&P 500 Index): Represents the U.S. stock market.
- **DXY** (Dollar Index): Reflects the strength of the USD against major currencies.
- **SPY** (ETF representing the S&P 500): A popular trading instrument.
- **GOLD** (Gold price): A traditional safe-haven asset.
The correlation between these assets can help traders understand how Bitcoin reacts to market movements of traditional financial instruments, providing opportunities for more effective trading decisions.
Additionally, the indicator allows users to **customize asset symbols for comparison**, not limited to the default indices (SPX, DXY, SPY, GOLD). This flexibility enables traders to tailor their analysis to specific goals and portfolios.
---
#### **Significance and Use of Correlation in Trading**
**Correlation** is a measure of the linear relationship between two data series. In the context of this indicator:
- **The correlation coefficient ranges from -1 to 1**:
- **1**: Perfect positive relationship (both increase or decrease together).
- **0**: No linear relationship.
- **-1**: Perfect negative relationship (one increases while the other decreases).
- **Use in trading**:
- Identify **strong relationships or unusual divergences** between Bitcoin and other assets.
- Help determine **market sentiment**: For example, if Bitcoin has a negative correlation with DXY, traders might expect Bitcoin to rise when the USD weakens.
- Provide a foundation for hedging strategies or investments based on inter-asset relationships.
---
#### **Components of the Indicator**
The "Correlation Coefficient" indicator consists of the following key components:
1. **Main Data (BTCUSD)**:
- The closing price of Bitcoin is used as the central asset for calculations.
2. **Comparison Data**:
- Users can select different asset symbols for comparison. By default, the indicator supports:
- **SPX**: Stock market index.
- **DXY**: Dollar Index.
- **SPY**: Popular ETF.
- **GOLD**: Gold price.
3. **Correlation Coefficients**:
- Calculated between BTC and each comparison index, based on a Weighted Moving Average (WMA) over a user-defined period.
4. **Graphical Representation**:
- Displays individual correlation coefficients with each comparison index, making it easier for traders to track and analyze.
---
#### **How to Analyze and Use the Indicator**
**1. Identify Key Correlations:**
- Observe the correlation lines between BTC and the indices to determine positive or negative relationships.
- Example:
- If the **Correlation Coefficient (BTC-DXY)** sharply declines to -1, this indicates that when USD strengthens, Bitcoin tends to weaken.
**2. Analyze the Strength of Correlations:**
- **Strong Correlations**: If the coefficient is close to 1 or -1, the relationship between the two assets is very clear.
- **Weak Correlations**: If the coefficient is near 0, Bitcoin may be influenced by other factors outside the compared index.
**3. Develop Trading Strategies:**
- Use correlations to predict Bitcoin's price movements:
- If BTC has an inverse relationship with **DXY**, traders might consider selling BTC when the USD strengthens.
- If BTC and **SPX** are strongly correlated, traders can monitor the stock market to predict Bitcoin's trend.
**4. Evaluate Changes Over Time:**
- Use different timeframes (daily, weekly) to track the correlation's fluctuations.
- Look for unusual signals, such as a breakdown or shift from positive to negative relationships.
---
#### **Conclusion**
The "Correlation Coefficient" indicator is a powerful tool that helps traders analyze the relationship between Bitcoin and major financial indices. The ability to customize asset symbols for comparison makes the indicator flexible and suitable for various trading strategies. When used correctly, this indicator not only provides insights into market sentiment but also supports the development of intelligent trading strategies and optimized profits.
MktCumTickThis script is a market sentiment indicator that calculates the cumulative TICK (Trade Imbalance Sentiment) for four major markets: NYSE (New York Stock Exchange), NASDAQ (National Association of Securities Dealers Automated Quotations), Dow Jones, and AMEX (American Stock Exchange).
Here's a breakdown of the script:
1. Market data requests: The script requests data for the four markets, including:
- TICK (Trade Imbalance Sentiment) data
- HLC3 (High, Low, Close) data
- ADVN (Advancing issues), DECL (Declining issues), and UNCH (Unchanged issues) data
2. Cumulative TICK calculation: The script calculates the cumulative TICK for each market by dividing the TICK data by the maximum TICK value for each market.
3. Plotting: The script plots the cumulative TICK values for each market as separate lines on the chart.
4. Background color: The script changes the background color of the chart based on the cumulative TICK values. If all four markets have decreasing cumulative TICK values, the background color turns red. If all four markets have increasing cumulative TICK values, the background color turns green.
The purpose of this indicator is to provide a visual representation of market sentiment across multiple markets. By analyzing the cumulative TICK values, traders can gain insights into market trends and make more informed trading decisions.
Some possible uses of this indicator include:
- Identifying market trends and sentiment
- Confirming trade entries and exits
- Monitoring market conditions and adjusting trading strategies accordingly
Coinbase Premium HeatmapCoinbase Premium Heatmap visualizes spot bitcoin premium (or discount) on Coinbase, relative to other spot markets, visualized as a heatmap overlay.
OPTIMIZED FOR CLARITY
Coinbase Premium can whipsaw quickly, with dramatic state changes over relatively brief periods, unnecessarily complicating its use (for our purposes).
To mitigate whipsaws, the script (a) averages premium/discount on an hourly basis, and (b) introduces lightweight exponential smoothing, to further simplify/clarify state.
WHY IT MATTERS
Spot Coinbase premium is a strong proxy for bullish institutional sentiment and net inflows/accumulation by western financial institutions, ETF providers, and corporations (like MicroStrategy) adding bitcoin to their treasury.
In aggregate, this holder cohort drives trend & sentiment more than any other, so it's important to know their directional bias.
HOW IT'S CALCULATED
Premium / discount calculates the spread between Coinbase spot BTC price, and spot price on Binance + Bybit. Calculation is averaged hourly, with light exponential smoothing.
HOW WE USE THE SCRIPT
When assessing optimal moments to hedge exposure (or sell spot assets) near a presumed impending cycle top, awareness of institutional sentiment is a crucial variable. This script:
(a) Filters out unnecessarily early cycle exit signals (if Coinbase premium is still present)
(b) Confirms other metrics that indicate an impending cycle top (if the neutral to bearish institutional sentiment we'd expect to see is in effect), and
(c) Visualizes state changes (from bearish to bullish & vice versa), that often make for good swing entries & exits on lower timeframes.
Futures Correlation VisualizerOVERVIEW
This indicator plots the normalized price changes of commonly traded futures. Visualizing data in this way makes studying and understanding market participation and sentiment easier.
Note:
Only 20 symbols can be plotted. The "request" functions are limited to 40 calls , 1 timeframe counts as a call, and 2 timeframes are used per symbol. Normalized values are derived by dividing the charts timeframe by 1D data. A runtime error will occur when more than 20 symbols are enabled. This limitation is unavoidable.
INPUTS
You can configure:
Colors and color scheme
Symbols to plot (most common futures)
Norm. source (todays open / yesterdays close)
Measurement type (%, ‱, Δ)
Label, zone, and zero options
True Total Altcoin Market CapThis indicator calculates the real total altcoin market capitalization by removing Bitcoin, Ethereum, and major stablecoins (USDT, USDC, BUSD, DAI) from the total cryptocurrency market cap. It replaces the standard price bars with custom-colored candlesticks showing the true altcoin market movements.
Features:
Excludes BTC, ETH, and major stablecoins for accurate altcoin market analysis
Custom color scheme: Green (#26a79b) for bullish and Red (#ef5351) for bearish candles
Based on CRYPTOCAP:TOTAL data
Helps traders focus on pure altcoin market trends
Non-repainting, using standard OHLC data
This tool provides a clearer view of altcoin market strength by filtering out the influence of major cryptocurrencies and stablecoins.
Daily Directional Bias Indicator (S&P 500)This indicator is designed to help you be on the right side of the trade.
Most traders who struggle to know which way price may move are only looking at part of the picture. This Directional Bias Indicator uses both the Accumulation/Distribution Line and VIX for directional confirmation.
The Accumulation/Distribution Line
The Accumulation/Distribution (ACC) line helps us gauge market momentum by showing the cumulative flow of money into or out of an asset. When the ACC line is rising, it suggests that buying pressure is dominating, indicating a bullish market. Conversely, when the ACC line is falling, it suggests that selling pressure is stronger, indicating a bearish market. By comparing the ACC line with the VWAP, traders can see if the price is moving in line with the overall market sentiment. If the ACC line is above the VWAP, it suggests the market is in a bullish phase; if it's below, it indicates a bearish phase.
The VIX
The VIX (Volatility Index) is often referred to as the "fear gauge" of the market. When the VIX is rising, it typically signals increased market fear and higher volatility, which can be a sign of bearish market conditions. Conversely, when the VIX is falling, it suggests lower volatility and a more stable, bullish market. Using the VIX with the VWAP helps us confirm market direction, particularly in relation to the S&P 500.
VWAP
For both the ACC Line and VIX, we use a VWAP line to gauge whether the ACC line or the VIX is above or below the average. When the ACC line is above the VWAP, we view it as a sign that price will go up. However, because the VIX has an inverse relationship, when the VIX falls below the VWAP, we take that as a sign to go long.
How to use
The yellow line represents the ACC Line.
The red line represents the VWAP based on the ACC line.
The triangles at the bottom simply show when the ACC line is above or below the VWAP.
The triangles at the top show whether the VIX is bullish or bearish.
If both triangles (top or bottom) are bullish, this confirms that the price of an asset like the S&P 500 will likely go up. If both triangles are pointing down, it suggests that price will fall.
As always, test for yourself.
Happy trading!
COT Report Indicator with Selectable Data TypeOverview
The COT Report Indicator with Selectable Data Types is a powerful tool for traders who want to gain deeper insights into market sentiment using the Commitment of Traders (COT) data. This indicator allows you to visualize the net positions of different participant categories—Commercial, Noncommercial, and Nonreportable—directly on your chart.
The indicator is fully customizable, allowing you to select the type of data to display, sync with your chart's timeframe, or choose a custom timeframe. Whether you're analyzing gold, crude oil, indices, or forex pairs, this indicator adapts seamlessly to your trading needs.
Features
Dynamic Data Selection:
Choose between Commercial, Noncommercial, or Nonreportable data types.
Analyze the net positions of market participants for more informed decision-making.
Flexible Timeframes:
Sync with the chart's timeframe for quick analysis.
Select a custom timeframe to view COT data at your preferred granularity.
Wide Asset Coverage:
Supports various assets, including gold, silver, crude oil, indices, and forex pairs.
Automatically adjusts to the ticker you're analyzing.
Clear Visual Representation:
Displays Net Long, Net Short, and Net Difference (Long - Short) positions with distinct colors for easy interpretation.
Error Handling:
Alerts you if the symbol is unsupported, ensuring you know when COT data isn't available for a specific asset.
How to Use
Add the Indicator:
Click "Indicators" in TradingView and search for "COT Report Indicator with Selectable Data Types."
Add it to your chart.
Customize the Settings:
Data Type: Choose between Commercial, Noncommercial, or Nonreportable positions.
Data Source: Select "Futures Only" or "Futures and Options."
Timeframe: Sync with the chart's timeframe or specify a custom one (e.g., weekly, monthly).
Interpret the Data:
Green Line: Net Long Positions.
Red Line: Net Short Positions.
Black Line: Net Difference (Long - Short).
Supported Symbols:
Gold, Silver, Crude Oil, Natural Gas, Forex Pairs, S&P 500, US30, NAS100, and more.
Who Can Benefit
Trend Followers: Identify the buying/selling trends of Commercial and Noncommercial participants.
Sentiment Analysts: Understand shifts in sentiment among major market players.
Long-Term Traders: Use COT data to confirm or contradict your fundamental analysis.
Example Use Case
For example, if you're trading gold (XAUUSD) and select Noncommercial Positions, you’ll see the long and short positions of speculators. An increase in net long positions may signal bullish sentiment, while an increase in net short positions may indicate bearish sentiment.
If you switch to Commercial Positions, you'll get insights into how hedgers and institutions are positioning themselves, helping you confirm or counterbalance your current trading strategy.
Limitations
The indicator only works with supported symbols (COT data availability is limited to specific assets).
The COT data is updated weekly, so it is not suitable for short-term intraday trading.
Risk Indicator# Risk Indicator
A dynamic risk analysis tool that helps traders identify optimal entry and exit points using a normalized risk scale from 0 to 1. The indicator combines price action, moving averages, and logarithmic scaling to provide clear visual signals for different risk zones.
### Key Features
• Displays risk levels on a scale of 0-1 with intuitive color gradients (blue → cyan → green → yellow → orange → red)
• Shows predicted price levels for different risk values
• Divides the chart into 5 DCA (Dollar Cost Average) zones
• Includes customizable alerts for rapid risk changes and zone transitions
• Automatically adjusts to market conditions using dynamic ATH/ATL calculations
### Customizable Parameters
• SMA Period: Adjust the smoothing period for the baseline moving average
• Power Factor: Fine-tune the sensitivity of risk calculations
• Initial ATL Value: Set the starting point for ATL calculations
• Label Offset: Adjust the position of price level labels
• Visual Options: Toggle price levels and zone labels
• Alert Settings: Customize alert thresholds and enable/disable notifications
### Risk Zones Explained
The indicator divides the chart into five distinct zones:
- 0.0-0.2: DCA 5x (Deep Blue) - Strongest buy zone
- 0.2-0.4: DCA 4x (Cyan) - Strong buy zone
- 0.4-0.6: DCA 3x (Green) - Neutral zone
- 0.6-0.8: DCA 2x (Yellow/Orange) - Take profit zone
- 0.8-1.0: DCA 1x (Red) - Strong take profit / potential sell zone
### Alerts
Built-in alerts for:
• Rapid increases in risk level
• Rapid decreases in risk level
• Entry into buy zones
• Entry into sell zones
### How to Use
1. Add the indicator to your chart
2. Adjust the SMA period and power factor to match your trading timeframe
3. Monitor the risk level and corresponding price predictions
4. Use the DCA zones to guide your position sizing
5. Set up alerts for your preferred risk thresholds
### Tips
- Lower risk values (blue/cyan) suggest potentially good entry points
- Higher risk values (orange/red) suggest taking profits or reducing position size
- Use in conjunction with other technical analysis tools for best results
- Adjust the power factor to fine-tune sensitivity to price movements
### Notes
- Past performance is not indicative of future results
- This indicator is meant to be used as part of a complete trading strategy
- Always manage your risk and position size according to your trading plan
Version 1.0
