VS-BTC
Last updated
Last updated
Link: https://bit.ly/44jMbAY
This indicator has been designed for use on bitcoin and ethereum.
The signals merely indicate extreme points in price at the given time.
They may serve as reversal signals in some cases or as mean reversion setups and scalping opportunities in others. Additionally, they can be used as alerts, signals, or reminders for the areas where you need to pay attention. Combining them with your own analysis will result in a much higher yield compared to using them as the sole signal.
The indicator shows when price diverges from what would be expected.
if we extrapolated current price velocity, indicating price has hit liquidity.
we compare price and expected price based on historical price reference points.
In strong momentum markets, if the generated signal aligns with the market's bias or direction, you can follow it. If the signals are in the opposite direction, exercise caution since the Maximum Favorable Excursion (MFE) in such situations is usually less than in other circumstances.
You can check the signal of this indicator on altcoins as well. the signals from this indicator doesn't get generated for each altcoins separately. but it shows the signals based on bitcoin data. and you can see they also are tops and bottoms because most of the times altcoins just follow bitcoin and eth.
The suggested timeframes for using these signals are 15m, 30m, 1H.
(because they are not too fast or slow and can fit different kinds of people)
However, make sure to check the signals on other timeframes as well. They are also good signals, so see if they align with your preferences.
Examples: (These are for v1) (for v1.2 checkout v1.2) (you have ability to choose the version)
Example of plotting the btc/eth data on the alt charts can be useful sometimes:
The metric we are assessing, a mean reversion indicator of considerable specificity, operates on the principle of identifying those instances wherein the prevailing price trajectory significantly deviates from the anticipatory path one would reasonably deduce if current rates of price velocity were extrapolated linearly. This divergence thereby insinuates that the market price has struck a point of liquidity, thereby suggesting that it has attained a critical juncture where a potential reversal may be imminent. However, instead of merely juxtaposing the raw variables of price and its corresponding velocity, which is a rather simplistic and somewhat inadequate analytical approach, our metric takes a more nuanced stance. It juxtaposes the current market price against a calculated expectation of price, which is derived from a comprehensive examination and extrapolation of prior historical price reference points, thereby accounting for the complex temporal dynamics that invariably shape market behavior.