OPEN-SOURCE SCRIPT
BTC Sigma Cloud
Overview
The BTC Sigma Cloud indicator calculates and displays 1, 2, and 3 sigma price movements for Bitcoin (BTC) on a rolling basis, visualized as a cloud. It shows historical volatility bands and projects them forward for the next 7 days.
Settings:
Vol Lookback: Default is 20 periods. Adjust to change the volatility calculation window.
Interpretation:
Cloud Bands: The cloud consists of three shaded layers representing 1σ, 2σ, and 3σ moves above and below the current price.
1σ (Innermost): 68% probability of price staying within this range.
2σ (Middle): 95% probability.
3σ (Outermost): 99.7% probability.
Historical View: The cloud tracks past price movements based on volatility.
Projection: The cloud extends 7 days forward, indicating potential price ranges based on current volatility.
Labels: Subtle labels (1σ, -1σ, 2σ, -2σ, 3σ, -3σ) mark the upper and lower bounds of each sigma level on the latest bar for clarity.
Trading Use:
Use the cloud to gauge potential support/resistance zones.
Monitor price behavior near sigma levels for breakout or reversal signals.
The projected cloud helps anticipate future price ranges for planning trades.
Notes
Best used on daily charts for Bitcoin.
Adjust the lookback period to suit shorter or longer-term analysis.
Combine with other indicators for confirmation.
The BTC Sigma Cloud indicator calculates and displays 1, 2, and 3 sigma price movements for Bitcoin (BTC) on a rolling basis, visualized as a cloud. It shows historical volatility bands and projects them forward for the next 7 days.
Settings:
Vol Lookback: Default is 20 periods. Adjust to change the volatility calculation window.
Interpretation:
Cloud Bands: The cloud consists of three shaded layers representing 1σ, 2σ, and 3σ moves above and below the current price.
1σ (Innermost): 68% probability of price staying within this range.
2σ (Middle): 95% probability.
3σ (Outermost): 99.7% probability.
Historical View: The cloud tracks past price movements based on volatility.
Projection: The cloud extends 7 days forward, indicating potential price ranges based on current volatility.
Labels: Subtle labels (1σ, -1σ, 2σ, -2σ, 3σ, -3σ) mark the upper and lower bounds of each sigma level on the latest bar for clarity.
Trading Use:
Use the cloud to gauge potential support/resistance zones.
Monitor price behavior near sigma levels for breakout or reversal signals.
The projected cloud helps anticipate future price ranges for planning trades.
Notes
Best used on daily charts for Bitcoin.
Adjust the lookback period to suit shorter or longer-term analysis.
Combine with other indicators for confirmation.
Script de código abierto
Siguiendo fielmente el espíritu de TradingView, el creador de este script lo ha publicado en código abierto, permitiendo que otros traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Puede utilizarlo de forma gratuita, pero tenga en cuenta que la publicación de este código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.
Script de código abierto
Siguiendo fielmente el espíritu de TradingView, el creador de este script lo ha publicado en código abierto, permitiendo que otros traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Puede utilizarlo de forma gratuita, pero tenga en cuenta que la publicación de este código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones que ofrecemos, no implican ni constituyen un asesoramiento financiero, ni de inversión, trading o cualquier otro tipo de consejo o recomendación emitida o respaldada por TradingView. Puede obtener información adicional en las Condiciones de uso.