OPEN-SOURCE SCRIPT
Ark Crypto Heatband
The crypto landscape is largely dominated by BTC and characterised by cyclical stages with varying degrees of mean reversion.
To understand what stage of the cycle we are currently experiencing, it is useful to examine to what degree the current BTC price has extended beyond a long term average. This is true even when analysing other crypto assets and helpful to view side by side.
This indicator uses the 1400 period daily SMA, which is broadly the 200 period weekly SMA. This can be configured, but historically has represented a baseline to which BTC commonly returns.
The graph plots current price in terms of multiples of this long term average. Traditionally, at multiples beyond 10, BTC is considered overextended with a higher likelihood of trending towards the mean thereafter. Colors indicate the extend of price extension.
The indicator specifically references BTC by default on all charts as it is designed to use BTC as general purpose indication of where crypto as a whole currently sits. Accordingly the indicator is only to be used on crypto charts.
To understand what stage of the cycle we are currently experiencing, it is useful to examine to what degree the current BTC price has extended beyond a long term average. This is true even when analysing other crypto assets and helpful to view side by side.
This indicator uses the 1400 period daily SMA, which is broadly the 200 period weekly SMA. This can be configured, but historically has represented a baseline to which BTC commonly returns.
The graph plots current price in terms of multiples of this long term average. Traditionally, at multiples beyond 10, BTC is considered overextended with a higher likelihood of trending towards the mean thereafter. Colors indicate the extend of price extension.
The indicator specifically references BTC by default on all charts as it is designed to use BTC as general purpose indication of where crypto as a whole currently sits. Accordingly the indicator is only to be used on crypto charts.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que la republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que la republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.