SOFR Spread (proxy: FEDFUNDS - US03MY)📊 SOFR Spread (Proxy: FEDFUNDS - US03MY) – Monitoring USD Money Market Liquidity
In 2008, the spread exhibits a sharp vertical spike, signaling a severe liquidity dislocation: investors rushed into short-term U.S. Treasuries, pushing their yields down dramatically, while the FEDFUNDS rate remained relatively high.
This behavior indicates extreme systemic stress in the interbank lending market, preceding massive Federal Reserve interventions such as rate cuts, emergency liquidity operations, and the launch of quantitative easing (QE).
Description:
This indicator plots the spread between the Effective Federal Funds Rate (FEDFUNDS) and the 3-Month US Treasury Bill yield (US03MY), used here as a proxy for the SOFR spread.
It serves as a simple yet powerful tool to detect liquidity dislocations and stress signals in the US short-term funding markets.
Interpretation:
🔴 Spread > 0.20% → Possible liquidity stress: elevated repo rates, cash shortage, interbank distrust.
🟡 Spread ≈ 0% → Normal market conditions, balanced liquidity.
🟢 Spread < 0% → Excess liquidity: strong demand for T-Bills, “flight to safety”, or distortion due to expansionary monetary policy.
Ideal for:
Monitoring Fed policy impact
Anticipating market-wide liquidity squeezes
Correlation with DXY, SPX, VIX, MOVE Index, and risk sentiment
🧠 Note: As SOFR is not directly available on TradingView, FEDFUNDS is used as a reliable proxy, closely tracking the same trends in most macro conditions.
Komut dosyalarını "spx" için ara
EMA Distance Indicator [Eddie_Bitcoin]🧠 EMA Distance Indicator
This indicator is a powerful statistical tool designed to provide enhanced context and signal confirmation for traders who want to go beyond price action alone.
🔍 What It Does
It calculates and visualizes the distance (%) between two EMAs (Fast & Slow) on either the current chart symbol or a selected macro/index reference (e.g., BTC Dominance, TOTAL2, SPX). But it doesn't stop there:
Core Features:
✅ Real-time percentage distance between Fast and Slow EMAs
📈 Slope (acceleration) of the distance to capture trend momentum
🎯 Gaussian-based percentile rank of the current distance over a configurable historical sample
📊 Dynamic table display with intuitive emoji-based cues
🟢 Highlights extreme conditions (e.g., TOP 5% or LOW 5% percentile zones)
🔀 Compare both current asset and a macro/index asset side by side
💡 Display Modes:
Show only current symbol
Show only index/macro symbol
Show both with independently positioned tables
🎯 Ideal Use Case
This is not a standalone strategy, but rather a statistical enhancement module designed to pair with tools like my 👉 “AltCoin Index Correlation” indicator. It gives traders a quick-glance view of strength, divergence, and macro alignment for better timing and confidence.
Whether you’re trading altcoins, tracking dominance charts, or watching indices, this tool offers deep visual insight into EMA-based dynamics — wrapped in a clean, emoji-driven UI.
🛠 Created with ❤️ by @Eddie_Bitcoin
🚀 ### Check my profile for other juicy hints and original strategies. ### 🚀
Index Futures vs Cash ArbitrageThis indicator measures the statistical spread between major stock index futures and their corresponding cash indices (e.g., ES vs SPX, NQ vs NDX) using Z-score normalization. It automatically detects commonly traded index pairs (S&P 500, Nasdaq, Dow Jones, Russell 2000) and calculates a smoothed spread between futures and spot prices. A Z-score is then derived from this spread to highlight potential overpricing or underpricing conditions.
Traders can use customizable thresholds to identify mean-reversion opportunities where the futures contract may be temporarily overvalued or undervalued relative to the index. The histogram highlights the direction of the Z-score (green = futures > index, red = futures < index), while built-in alerts notify users of key threshold breaches or zero-line crosses.
This tool is designed for discretionary traders, pairs traders, or anyone exploring statistical arbitrage strategies between futures and spot markets. It is not a buy/sell signal by itself and should be used with additional confluence or risk management techniques.
Gabriel's Squeeze Momentum PRO“Gabriel’s Squeeze Momentum PRO” is a next-generation evolution of the classic SQZMOM concept. It layers multiple John Ehlers filters, Jurik smoothing, adaptive cycle-detection, and a Cauchy-weighted price filter on top of the familiar Bollinger-Band-inside-Keltner-Channel squeeze logic. The goal is to pinpoint volatility contractions and immediately gauge whether forthcoming expansion is likely to break bullish or bearish—while screening out noise, lag, and regime shifts across any symbol or timeframe.
1 · What the script plots
Plot What it represents Why it matters
Momentum line (teal/red) Price-de-trended linear-regression of a Cauchy-filtered source, optionally normalized. Measures directional thrust during / after a squeeze.
Signal line (white JMA) Jurik moving average of the momentum line. Smooth trigger for crossovers / reversals.
Squeeze dots (blue, black, red, yellow, purple, green) Real-time volatility state: No squeeze → Wide → Normal → Narrow → Very Narrow → Fired. Helps anticipate explosive moves as BB exits KC.
Cyclic RSI bands (cyan / fuchsia) Dynamic overbought / oversold bands derived by MESA dominant-cycle analysis. Contextualizes momentum extremes—no fixed 70/30.
Rate-of-Change (optional) (orange / blue shading) ROC of the momentum-signal spread, scaled. Highlights acceleration / deceleration.
Reversal guide lines (optional colored rays) Drawn when momentum crosses its JMA and reversal-mode is on. Visual confirmation of early trend change.
2 · Key engine components
Cauchy PDF-weighted moving average
Creates a heavy-tailed weighting curve; center bars dominate while still capturing fat-tail outliers—excellent for choppy instruments or volume-weighting (Volume weighted?).
Butterworth High-Pass & Super-Smoother Low-Pass
Strip out drift, then smooth what’s left. This isolates true cyclic motion before momentum is computed.
Fast RMS normalizer
Converts the band-pass output into a unit-scale “power” reading—vital for adaptive thresholds.
Goertzel + MESA dominant-cycle
Auto-detects fast & slow cycles, then blends them to size overbought / oversold bands and to set the adaptiveLength (if Use Adaptive Length? is enabled).
Jurik RSX & JMA
Provide ultra-low-lag smoothing for momentum and for reversal detection.
3 · Input groups and how to tune them
Group Why change it Tips
Normalization (Unbounded / Min-Max / Standard Deviations) Puts momentum & signal on the scale that best suits the asset. Crypto / small-caps: StdDev (handles volatility).
FX / indices: Min-Max or leave unbounded for raw juice.
Cauchy Distribution Tailors the Cauchy filter. Gamma ↓ (0.1-0.4) ⇒ faster / riskier. Use Adaptive Length pairs it with MESA cycle length for auto speed control.
Rate of Change Visual momentum acceleration. Leave off (Show Rate of Change = false) if you want a cleaner pane.
Momentum Colors / Directional Momentum? Switch between classic SQZMOM coloring and trend-biased histogram. Turn on when you prefer “green-gets-greener / red-gets-redder” style signals.
Squeeze Colors & Thresholds Fine-tune what “wide / normal / narrow” mean. Larger assets (SPX, BTC-Perp): raise the thresholds a touch. Thin or low-ATR symbols: lower them.
Multi-Time-frame blocks (1 h, 4 h, D, W, M) Pre-sets for BB/KC length, squeeze thresholds, and reversal MA length per TF. The script auto-detects the chart timeframe and loads the matching row—just adjust each block once.
Reversal Signals Whether to draw vertical rays on momentum crossovers. Use on swing-trading timeframes (≥1 h) to catch early momentum flips.
4 · How to read & trade it
Scan for purple / yellow / red dots
These indicate Very-Narrow, Narrow, and Normal squeezes—markets are coiling.
Wait for a fired squeeze (green dot)
BB has pushed outside KC; volatility is expanding. Momentum direction often dictates breakout bias.
Check momentum relative to zero & signal
Bullish setup: Momentum > 0 and crossing above signal. Bearish setup: Momentum < 0 and crossing below signal. Alerts “Bullish / Bearish Trend Reversal” are raised here if enabled.
Validate with cyclic bands
If momentum launches from near the lower cyan band, bullish moves are higher-probability (symmetrical for upper fuchsia band).
Confirm trend strength
Directional-momentum histogram keeps turning brighter in trend direction; ROC is above zero and rising.
Manage the trade
First target = prior squeeze mid-range or recent swing high/low.
Consider scaling out when momentum weakens (histogram fades) or reverses through signal line.
Optional: draw the reversal rays to highlight exit zones automatically.
5 · Practical workflows
Scalpers (1-5 min)
Uncheck Use Adaptive Length, set main Length to 10-12, Gamma to 0.3.
Use ROC for ultra-fast divergences.
Treat Normal squeezes (red) as tradable; ignore Wide. Healthy Volume is ideal.
Swing traders (1 h – 4 h)
Keep default adaptive length; enable 1-H/4-H reversal blocks.
Trade only after Very-Narrow/Narrow squeezes; ride until weekly/daily reversal ray prints.
Position / Trend followers (Daily+)
Raise Wide/Normal thresholds a bit (e.g., 2.2 / 1.7).
Momentum normalization = Standard Deviations to filter regime shifts.
Combine with higher-timeframe MTF panel or moving-average ribbons.
6 · Built-in alert catalog
Alert name Fires when Typical action
🟢 Fired Squeeze Green dot appears (vol expansion already under way) Stay in trend or add on pullbacks.
🟠 Low / 🔴 Normal / 🟡 Tight / 🟣 Very Tight Respective squeeze engages Get your watch-list ready; plan trades.
🐂 Bullish / 🐻 Bearish Trend Reversal Momentum crosses signal in requested direction Entry / exit / scale adds.
Set alerts on “Once Per Bar Close” for reliable signals.
7 · Best practices & caveats
Context is king – Use higher-timeframe structure (support/resistance, VWAP, market profile) to avoid false breakouts.
Data quality – On illiquid symbols, consider turning volume weighting off (pre-market gaps distort results).
Normalization choice – Mixing different normalizations across charts can confuse muscle memory; pick one style per asset class.
Lag vs. noise – If entries feel late, lower Gamma or disable adaptive length. If too jumpy, increase Length or choose Standard-Deviation normalization.
Not a stand-alone holy grail – Combine with risk management (ATR-based stops, Kelly-fraction sizing) and confirm with price action.
Harness the script’s adaptive filtering, multi-TF presets, and rich alert suite to spot compression, time breakouts, and stay on the right side of momentum—whether you’re scalping ES futures or swing-trading alt-coins.
SMT - JimmyTrades🔧 SMT – JimmyTrades: Publication Rules and User Guide
📌 What This Script Does
This script detects Smart Money Traps (SMT) Divergences between the instrument on your chart and a comparative symbol (default: ES). It automatically plots both confirmed and unconfirmed bullish and bearish SMT setups across multiple timeframes.
These SMT divergences can help traders:
Identify potential reversal points
Confirm high-probability entries in line with smart money behavior
Enhance bias when confluence aligns with other market structure or liquidity factors
⚙️ Important Settings
Please make sure you correctly configure the following inputs:
Symbol: The comparative asset to check divergence against. Common examples: ES, NQ, SPX.
Session Type: Ensure this matches your chart’s session setting: Extended or Regular.
Adjustment Type: Match this to your chart (None, Dividends, or Splits) under TradingView’s chart settings (bottom-right corner).
Pivot Lookback: Controls the sensitivity of divergence detection (default is 15). Higher values reduce signal frequency.
Timeframes: You can enable up to six timeframes independently for SMT scanning.
🟢 Bullish SMT Signals
Bullish SMTs are identified when price on your chart makes a lower low, but the comparative symbol (e.g., ES) does not, suggesting potential accumulation or trap liquidity.
🔴 Bearish SMT Signals
Bearish SMTs are flagged when your chart makes a higher high, while the comparative symbol fails to do so, hinting at distribution or a stop run setup.
📈 How to Use This Script
Add the indicator to your chart.
Set the correct comparative symbol (e.g., ES for NQ, SPX for SPY, etc.).
Choose your preferred timeframes.
Watch for unconfirmed SMTs (dotted lines) as potential early warnings.
Look for confirmed SMTs (solid lines) once price respects the divergence zone for several bars.
Combine with structure, liquidity sweeps, killzones, and high-impact news for higher confluence.
🧠 Best Practices
Use SMT signals as part of a broader trade plan—not standalone entries.
Focus on SMTs forming after liquidity sweeps or during session opens (London/NY).
Combine with your higher-timeframe bias, breaker blocks, or Pegasus/Unicorn entry models.
⚠️ Limitations
Historical backtest may show perfect SMTs—real-time confirmation requires patience.
SMTs may not play out without proper context—avoid blindly entering based on signal alone.
This script is not financial advice—use at your own discretion and always manage risk.
Divergence Macro Sentiment Indicator (DMSI)The Divergence Macro Sentiment Indicator (DMSI)
Think of DMSI as your daily “mood ring” for the markets. It boils down the tug-of-war between growth assets (S&P 500, copper, oil) and safe havens (gold, VIX) into one clear histogram—so you instantly know if the bulls have broad backing or are charging ahead with one foot tied behind.
🔍 What You’re Seeing
Green bars (above zero): Risk-on conviction.
Equities and commodities are rallying while gold and volatility retreat.
Red bars (below zero): Risk-off caution.
Gold or VIX are climbing even as stocks rise—or stocks aren’t fully joined by oil/copper.
Zero line: The line in the sand between “full-steam ahead” and “proceed with care.”
📈 How to Read It
Cross-Zero Signals
Bullish trigger: DMSI flips up through zero after a red stretch → fresh long entries.
Bearish trigger: DMSI tumbles below zero from green territory → tighten stops or go defensive.
Divergence Warnings
If SPX makes new highs but DMSI is rolling over (lower green bars or red), that’s your early red flag—rallies may fizzle.
Strength Confirmation
On pullbacks, only buy dips when DMSI ≥ 0. When DMSI is deeply positive, you can be more aggressive on position size or add leverage.
💡 Trade Guidance & Use Cases
Trend Filter: Only take your S&P or sector-ETF long setups when DMSI is non-negative—avoids hollow rallies.
Macro Pair Trades:
Deep red DMSI: go long gold or gold miners (GLD, GDX).
Strong green DMSI: lean into cyclicals, industrials, even energy names.
Risk Management:
Scale out as DMSI fades into negative territory mid-trade.
Scale in or add to winners when it stays bullish.
Swing Confirmation: Overlay on any oscillator or price-pattern system—accept signals only when the macro tide is flowing in your favour.
🚀 Why It Works
Markets don’t move in a vacuum. When stocks rally but the “real-economy” metals and volatility aren’t cooperating, something’s off under the hood. DMSI catches those cross-asset cracks before price alone can—and gives you an early warning system for smarter entries, tighter risk, and bigger gains when the macro trend really kicks in.
UM Dual MA with Price Bar Color change & Fill
Description
This is a dual moving average indicator with colored bars and moving averages. I wrote this indicator to keep myself on the right side of the market and trends. It plots two moving averages, (length and type of MA are user-defined) and colors the MAs green when trending higher or red when trending lower. The price bars are green when both MAs are green, red when both MAs are red, and orange when one MA is green and the other is red. The idea behind the indicator is to be extremely visual. If I am buying a red bar, I ask myself "why?" If I am selling a green bar, again, "why?"
Recommended Usage
Configure your tow favorite Moving averages. Consider long positions when one or both turn green. Scale into a position with a portion upon the first MA turning green, and then more when the second turns green. Consider scaling out when the bars are orange after an up move.
Orange bars are either areas of consolidation or prior to major turns.
You can also look for MA crossovers.
The indicator works on any timeframe and any security. I use it on daily, hourly, 2 day charts.
Default settings
The defaults are the author's preferred settings:
- 8 period WMA and 16 period WMA.
- Bars are green when both MAs are trending higher, red when both MAs are trending lower, and orange when one MA is trending higher and the other is trending lower.
Moving average types, lengths, and colors are user-configurable. Bar colors are also user-configurable.
Alerts
Alerts can be set by right-clicking the indicator and selecting the dropdown:
- Bullish Trend Both MAs turning green
- Bearish Trend Both MAs turning red
- Mixed Trend, 1 green 1 red MA
Helpful Hints:
Look for bullish areas when both MAs turn green after a sustained downtrend
Look for bearish areas when both MAs turn red
Careful in areas of orange bars, this could be a consolidation or a warning to a potential trend direction change.
Switch up your timeframes, I toggle back and forth between 1 and 2 days.
Stretch your timeframe over a lower time frame; for example, I like the 8 and 16 daily WMA. With most securities I get 16 bars with pre and post market. This translates into 128 and 256 MAs on the hourly chart. This slows down moves and color transitions for better manageability.
Author's Subjective Observations
I like the 128/256 WMA on the hourly charts for leveraged and inverse ETFs such as SPXL/SPXS, TQQQ/SQQQ, TNA/TZA. Or even the volatility ETFs/ETNS: UVXY, VXX.
Here is a one-hour chart example:
I have noticed that as volatility increases, I should begin looking at higher timeframes. This seems counterintuitive, but higher volatility increases the level of noise or swings.
I question myself when I short a green bar or buy a red bar; "Why am I doing this?" The colors help me visually stay on the right side of trend. If I am going to speculate on a market turn, at least do it when the bars are orange (MA trends differ)
My last observation is a 2-day chart of leveraged ETFs with the 8 and 16 WMAs. I frequently trade SPXL, FNGA, and TNA. If you are really dissecting this indicator,
look at a few 2-day charts. 2-day charts seem to catch the major swings nicely up and down. They also weed out the daily sudden big swings such as a panic move from economic data
or tweets. When both the MAs turn red on a 2-day chart the same day or same bar, beware; this could be a rough ride or short opportunity. I found weekly charts too long for my style but good
to review for direction. Less decisions on longer charts equate to less brain damage for myself.
These are just my thoughts, of course you do you and what suits your style best! Happy Trading.
Risk-On / Risk-Off MeterThe risk on/off meter helps you assess the market's overall risk sentiment.
Try using it on the VIX daily chart.
The calculation is based on the following values:
Risk-On Assets
spx dax nas100 copper oil audusd nzdusd btc audjpy
Risk-Off Assets
gold usdjpy usdchf vix us02y us10y us30y dxy
Below a calculated value of 25, Risk Of is displayed as being above a value of 65 Risk On. The neutral market phase is in between. The indicator is used purely as a market sentiment indicator and does not provide any trading recommendations.
OverUnder Yield Spread🗺️ OverUnder is a structural regime visualizer , engineered to diagnose the shape, tone, and trajectory of the yield curve. Rather than signaling trades directly, it informs traders of the world they’re operating in. Yield curve steepening or flattening, normalizing or inverting — each regime reflects a macro pressure zone that impacts duration demand, liquidity conditions, and systemic risk appetite. OverUnder abstracts that complexity into a color-coded compression map, helping traders orient themselves before making risk decisions. Whether you’re in bonds, currencies, crypto, or equities, the regime matters — and OverUnder makes it visible.
🧠 Core Logic
Built to show the slope and intent of a selected rate pair, the OverUnder Yield Spread defaults to 🇺🇸US10Y-US2Y, but can just as easily compare global sovereign curves or even dislocated monetary systems. This value is continuously monitored and passed through a debounce filter to determine whether the curve is:
• Inverted, or
• Steepening
If the curve is flattening below zero: the world is bracing for contraction. Policy lags. Risk appetite deteriorates. Duration gets bid, but only as protection. Stocks and speculative assets suffer, regardless of positioning.
📍 Curve Regimes in Bull and Bear Contexts
• Flattening occurs when the short and long ends compress . In a bull regime, flattening may reflect long-end demand or fading growth expectations. In a bear regime, flattening often precedes or confirms central bank tightening.
• Steepening indicates expanding spread . In a bull context, this may signal healthy risk appetite or early expansion. In a bear or crisis context, it may reflect aggressive front-end cuts and dislocation between short- and long-term expectations.
• If the curve is steepening above zero: the world is rotating into early expansion. Risk assets behave constructively. Bond traders position for normalization. Equities and crypto begin trending higher on rising forward expectations.
🖐️ Dynamically Colored Spread Line Reflects 1 of 4 Regime States
• 🟢 Normal / Steepening — early expansion or reflation
• 🔵 Normal / Flattening — late-cycle or neutral slowdown
• 🟠 Inverted / Steepening — policy reversal or soft landing attempt
• 🔴 Inverted / Flattening — hard contraction, credit stress, policy lag
🍋 The Lemon Label
At every bar, an anchored label floats directly on the spread line. It displays the active regime (in plain English) and the precise spread in percent (or basis points, depending on resolution). Colored lemon yellow, neither green nor red, the label is always legible — a design choice to de-emphasize bias and center the data .
🎨 Fill Zones
These bands offer spatial, persistent views of macro compression or inversion depth.
• Blue fill appears above the zero line in normal (non-inverted) conditions
• Red fill appears below the zero line during inversion
🧪 Sample Reading: 1W chart of TLT
OverUnder reveals a multi-year arc of structural inversion and regime transition. From mid-2021 through late 2023, the spread remains decisively inverted, signaling persistent flattening and credit stress as bond prices trended sharply lower. This prolonged inversion aligns with a high-volatility phase in TLT, marked by lower highs and an accelerating downtrend, confirming policy lag and macro tightening conditions.
As of early 2025, the spread has crossed back above the zero baseline into a “Normal / Steepening” regime (annotated at +0.56%), suggesting a macro inflection point. Price action remains subdued, but the shift in yield structure may foreshadow a change in trend context — particularly if follow-through in steepening persists.
🎭 Different Traders Respond Differently:
• Bond traders monitor slope change to anticipate policy pivots or recession signals.
• Equity traders use regime shifts to time rotations, from growth into defense, or from contraction into reflation.
• Currency traders interpret curve steepening as yield compression or divergence depending on region.
• Crypto traders treat inversion as a liquidity vacuum — and steepening as an early-phase risk unlock.
🛡️ Can It Compare Different Bond Markets?
Yes — with caveats. The indicator can be used to compare distinct sovereign yield instruments, for example:
• 🇫🇷FR10Y vs 🇩🇪DE10Y - France vs Germany
• 🇯🇵JP10Y vs 🇺🇸US10Y - BoJ vs Fed policy curves
However:
🙈 This no longer visualizes the domestic yield curve, but rather the differential between rate expectations across regions
🙉 The interpretation of “inversion” changes — it reflects spread compression across nations , not within a domestic yield structure
🙊 Color regimes should then be viewed as relative rate positioning , not absolute curve health
🙋🏻 Example: OverUnder compares French vs German 10Y yields
1. 🇫🇷 Change the long-duration ticker to FR10Y
2. 🇩🇪 Set the short-duration ticker to DE10Y
3. 🤔 Interpret the result as: “How much higher is France’s long-term borrowing cost vs Germany’s?”
You’ll see steepening when the spread rises (France decoupling), flattening when the spread compresses (convergence), and inversions when Germany yields rise above France’s — historically rare and meaningful.
🧐 Suggested Use
OverUnder is not a signal engine — it’s a context map. Its value comes from situating any trade idea within the prevailing yield regime. Use it before entries, not after them.
• On the 1W timeframe, OverUnder excels as a macro overlay. Yield regime shifts unfold over quarters, not days. Weekly structure smooths out rate volatility and reveals the true curvature of policy response and liquidity pressure. Use this view to orient your portfolio, define directional bias, or confirm long-duration trend turns in assets like TLT, SPX, or BTC.
• On the 1D timeframe, the indicator becomes tactically useful — especially when aligning breakout setups or trend continuations with steepening or flattening transitions. Daily views can also identify early-stage regime cracks that may not yet be visible on the weekly.
• Avoid sub-daily use unless you’re anchoring a thesis already built on higher timeframe structure. The yield curve is a macro construct — it doesn’t oscillate cleanly at intraday speeds. Shorter views may offer clarity during event-driven spikes (like FOMC reactions), but they do not replace weekly context.
Ultimately, OverUnder helps you decide: What kind of world am I trading in? Use it to confirm macro context, avoid fighting the curve, and lean into trades aligned with the broader pressure regime.
JPMorgan Collar LevelsThis indicator visualizes the current JPMorgan Hedging Collar strategy commonly used by institutional funds like JHEQX. It plots three key levels:
– Short Call strike (upper bound)
– Long Put strike (protection level)
– Short Put strike (cost reduction)
The area between the long put and short call is shaded to represent the active hedging zone. This setup is updated quarterly and can influence SPX market behavior near expiration dates.
Inputs are customizable to reflect the latest collar configuration. Useful for traders tracking institutional hedging flows or analyzing market structure near key option expirations.
Risk-On / Risk-Off ScoreRisk-On / Risk-Off Score (Macro Sentiment Indicator)
This indicator calculates a custom Risk-On / Risk-Off Score to objectively assess the current market risk sentiment using a carefully selected basket of macroeconomic assets and intermarket relationships.
🧠 What does this indicator do?
The score is based on 14 key components grouped into three categories:
🟢 Risk-On Assets (rising = appetite for risk)
(+1 if performance over X days is positive, otherwise –1)
NASDAQ 100 (NAS100USD)
S&P 500 (SPX)
Bitcoin (BTCUSD)
Copper (HG1!)
WTI Crude Oil (CLK2025)
🔴 Risk-Off Assets (rising = flight to safety)
(–1 if performance is positive, otherwise +1)
Gold (XAUUSD)
US Treasury Bonds (TLT ETF) (TLT)
US Dollar Index (DXY)
USD/CHF
USD/JPY
US 10Y Yields (US10Y) (yields are interpreted inversely)
⚖️ Risk Spreads / Relative Indicators
(+1 if rising, –1 if falling)
Copper/Gold Ratio → HG1! / XAUUSD
NASDAQ/VIX Ratio → NAS100USD / VIX
HYG/TLT Ratio → HYG / TLT
📏 Score Calculation
Total score = sum of all components
Range: from –14 (extreme Risk-Off) to +14 (strong Risk-On)
Color-coded output:
🟢 Score > 2 = Risk-On
🟠 –2 to +2 = Neutral
🔴 Score < –2 = Risk-Off
Displayed as a line plot with background color and signal markers
🧪 Timeframe of analysis:
Default: 5 days (adjustable via input)
Calculated using Rate of Change (% change)
🧭 Use Cases:
Quickly assess macro sentiment
Filter for position sizing, hedging, or intraday bias
Especially useful for:
Swing traders
Day traders with macro filters
Volatility and options traders
📌 Note:
This is not a buy/sell signal indicator, but a contextual sentiment tool designed to help you stay aligned with overall market conditions.
ZVGS Reactor🧠 ZVGS Reactor - High-Accuracy Trend Confirmation Strategy (Pine Script v6)
🚀 Overview
ZVGS Reactor is a precision-engineered, multi-layered trading strategy designed for crypto, forex, and equity markets. It blends adaptive trend tracking, directional strength confirmation, and volume validation to generate high-probability entries and exits. Built on a non-repainting foundation, the strategy ensures reliable performance in both backtesting and live trading environments.
🔹 How This Strategy Works (Indicator Fusion)
The ZVGS Reactor combines four core components:
1️⃣ ZLEMA Baseline for Trend Bias
📌 What It Does: Tracks the smoothed price trend and defines directional bias.
✔ Zero Lag Exponential Moving Average (ZLEMA)
Adaptive and responsive to price movement
Price above ZLEMA = bullish bias
Price below ZLEMA = bearish bias
2️⃣ Gradient Trend Filter for Momentum Slope
📌 What It Does: Measures slope strength to confirm directional momentum.
✔ Gradient Filter
Positive slope = bullish push
Negative slope = bearish pressure
3️⃣ Vortex Indicator (RMA Smoothed) for Trend Strength
📌 What It Does: Confirms whether the market is trending strongly in one direction.
✔ Vortex Indicator (VI)
VI+ > VI- = Bullish trend
VI- > VI+ = Bearish trend
Normalized & threshold-filtered for reliable confirmations
4️⃣ Volume Confirmation with Spike or Moving Average Toggle
📌 What It Does: Filters for strong market participation to reduce false breakouts.
✔ Volume Confirmation System
Spike Mode: Volume must exceed 1.5x its recent average
Toggle Option: Switch between spike mode and standard volume > average
Prevents entries in low-volume chop conditions
🎯 Entry & Exit Logic
✔ Long Entry (All Conditions Must Be Met):
Price above ZLEMA
Gradient slope > 0
Vortex confirms bullish strength
Volume passes confirmation filter
✔ Short Entry (All Conditions Must Be Met):
Price below ZLEMA
Gradient slope < 0
Vortex confirms bearish strength
Volume passes confirmation filter
✔ Exits (Fully Automated):
TP1: Close 50% at the first target
TP2: Fully exit at the second target
Stop Loss: Configurable SL included
🔧 Strategy Customization
All parameters are fully adjustable:
✅ ZLEMA length
✅ Volume confirmation mode (Spike or SMA)
✅ TP1/TP2/SL % levels
✅ Vortex length & threshold
✅ Gradient smoothing period
📈 Recommended Use Cases
Markets:
✅ Crypto (BTC, ETH, SOL, etc.)
✅ Forex (EUR/USD, GBP/JPY, etc.)
✅ Stocks & Indices (SPX, NASDAQ, DAX)
Timeframes:
✅ Swing: 1H – 4H – 1D
✅ Intraday: 5M – 15M – 30M
⚙️ Backtest Settings for Realistic Simulation
Initial Capital: $1,000
Commission: 0.05%
Slippage: 1
Date Filter: Built-in start and end time range
📢 TradingView Disclaimer
This script is for educational purposes only and does not constitute financial advice. Trading involves risk. Past performance is not indicative of future results. Always use demo testing before live deployment. Users are fully responsible for their own trading decisions.
🚀 Why Choose ZVGS Reactor?
✅ Zero-lag baseline with adaptive filtering
✅ Trend, strength, and volume confirmation
✅ Volume spike toggle for flexibility
✅ 100% Non-repainting — true signal stability
✅ Clean dashboard with real-time stats
✅ Works across all markets and timeframes
📢 Start Trading Smarter with ZVGS Reactor!
🔗 Use it on TradingView today and optimize your edge. 🔥
Panic Drop Stock Market Bull/Bear Market Panic Drop Bull/Bear
What It Does:
This indicator identifies bull and bear markets for the S&P 500 (or any stock/index) using the 50-period and 150-period Simple Moving Averages (SMAs). A green background signals a confirmed bull market when the 50 SMA is above the 150 SMA and the 150 SMA slope is flat or upward. A red background signals a confirmed bear market when the 50 SMA is below the 150 SMA and the 150 SMA slope is downward. The background color persists until a new confirmed state is detected, ensuring no gaps—perfect for spotting long-term market trends whether you’re a beginner, trend trader, or long-term investor.
Key Features:
Plots 50 SMA (default: blue line) and 150 SMA (default: orange line).
Background highlights: green for bull markets, red for bear markets.
Persistent background color—no gaps during unconfirmed periods.
Alerts for confirmed bull and bear market transitions.
Fully adjustable: MA periods, slope lookback, and more.
How to Use It:
Add to your S&P 500 chart (e.g., SPX or SPY) on a daily or weekly timeframe (daily default recommended for long-term trends).
Watch for background color changes:
Green background: Confirmed bull market—consider long positions or holding.
Red background: Confirmed bear market—consider shorting or exiting longs.
Customize via settings:
Adjust MA periods (default: 50 and 150).
Set slope lookback (default: 5 bars) to control slope sensitivity.
Change MA colors if desired.
Set alerts: Right-click on the chart > "Add Alert" > Select "Bull Market Confirmed" or "Bear Market Confirmed."
Trade smart: Use the background to confirm market regimes—e.g., go long during green (bull) phases above key support levels, or protect capital during red (bear) phases.
Why It’s Great:
Beginners: Simple background colors make market trends easy to spot.
Trend Traders: 50/150 SMA crossover with slope confirmation catches major market shifts.
Long-Term Investors: Persistent background ensures you stay in the trend without noise.
Created by Timothy Assi (Panic Drop), eToro’s elite investor. Test it, tweak it, and trade with confidence!
OPEX & VIX Expiry Markers (Past, Present, Future)Expiry Date Indicator for Options & Index Traders
Track Key Expiration Dates Automatically
For traders focused on options, indices, and expiration-based strategies, staying aware of key expiration dates is essential. This TradingView indicator automatically plots OPEX, VIX Expiry, and Quarterly Expirations on your charts—helping you plan trades more effectively without manual tracking.
Features:
✔ OPEX Expiration Markers – Highlights the third Friday of each month, when equity and index options expire.
✔ VIX Expiration Tracking – Marks Wednesday VIX expirations, useful for volatility-based trades.
✔ Quarterly Expiration Highlights – Identifies major market expiration cycles for better trade management.
✔ Live Countdown to Next OPEX – Displays how many days remain until the next expiration.
✔ Works on Any Timeframe – Past, present, and future expiration dates update dynamically.
✔ Customizable Settings – Enable or disable specific features based on your trading style.
Ideal for Traders Who Use:
📈 SPX / SPY / NDX / VIX Options Strategies
📅 Iron Condors, Credit Spreads, and Expiration-Based Trades
This tool helps traders stay ahead of expiration cycles, ensuring they never miss an important date. Simple, effective, and built for seamless integration into your trading workflow.
This keeps it professional and to the point without overhyping it. Let me know if you'd like any further refinements! 🚀
TILT - Timed Index of Liquidity TrendsThe Timed Index of Liquidity Trends (TILT) is a tracking tool for high-market cap, high-volatility assets like Bitcoin (BTCUSD), the S&P 500 (SPY), the Nasdaq 100 (QQQ), and Gold. Liquidity drives markets; understanding when liquidity is expanding or contracting can help traders anticipate major market swings with greater confidence.
TILT’s M2 Calculation
TILT is based on a global M2 money supply proxy, which aggregates liquidity conditions from major economies. Since TradingView does not provide direct M2 data for all regions, the indicator uses market-based proxies instead:
🇺🇸 United States – S&P 500 Index (SPX)
🇨🇦 Canada – TSX Composite Index (TSX)
🇪🇺 Eurozone – EUR/USD Exchange Rate (EURUSD)
🇬🇧 United Kingdom – GBP/USD Exchange Rate (GBPUSD)
🇷🇺 Russia – Moscow Exchange Index (MOEX)
🇨🇳 China – China 50 Index (CN50USD)
🇯🇵 Japan – Nikkei 225 Index (JPN225)
🇦🇺 Australia – Gold (XAUUSD) as a liquidity proxy
🇮🇳 India – Nifty 50 Index (NIFTY)
🇰🇷 South Korea – KOSPI Index (KOSPI)
🇧🇷 Brazil – Bovespa Index (IBOV)
🇿🇦 South Africa – USD/ZAR Exchange Rate (USDZAR)
By summing these liquidity proxies, TILT provides a comprehensive view of global M2 conditions, allowing traders to see when money supply is expanding (bullish liquidity conditions) or contracting (bearish liquidity conditions).
How to Use TILT for Trading High-Volatility Assets
TILT is not a traditional price indicator. It is a macro tool designed to show whether liquidity is flowing into or out of the financial system. Assets like Bitcoin, QQQ, and Gold tend to perform well when liquidity is expanding and decline when liquidity is contracting.
₿ Bitcoin (BTCUSD) – The Ultimate Liquidity Sponge
Bitcoin thrives on excess liquidity because it is still a speculative asset with no central authority.
· Liquidity Expanding → BTC tends to rise, as speculative capital flows in.
· Liquidity Contracting → BTC struggles or enters a bear market as leverage dries up.
Example Use Case: If TILT turns green (expanding liquidity) and BTC is near a technical support zone, it may indicate a buying opportunity before the next rally.
📊 S&P 500 (SPY) & Nasdaq 100 (QQQ) – Growth & Risk Appetite
These indices are heavily influenced by liquidity conditions because they represent growth stocks and corporate credit access.
· SPY (🇺🇸) → Moves based on global liquidity, particularly Fed policy & M2 expansion.
· QQQ (🇺🇸) → Even more sensitive than SPY due to high exposure to tech stocks.
Example Use Case: If TILT shows liquidity expansion, QQQ often leads SPY higher, providing early signals for market-wide risk-on behavior.
🥇 Gold – Liquidity & Inflation Hedge
Gold is a monetary asset, meaning it benefits from liquidity expansion and inflation fears.
· Liquidity Expanding → Gold can rally as real yields decline.
· Liquidity Contracting → Gold struggles, especially if real yields rise.
Example Use Case: If TILT turns red (liquidity contracting) and bond yields are rising, gold could enter a bearish phase.
⏱️ Timing Market Swings with the Offset Function
The offset function in TILT allows traders to shift liquidity data forward or backward in time to find the best correlation with price action. However, the offset is not fixed and should be re-evaluated periodically to ensure it remains optimized as a leading indicator. Liquidity cycles and market conditions change over time, meaning an offset that worked well in one period may need adjustment in another.
🤔 Why Use an Offset?
Liquidity moves markets with a lag – The effect of M2 expansion/contraction takes time to show up in risk assets.
Finding the right lag helps confirm liquidity-driven price moves – This is crucial for Bitcoin, QQQ, and Gold, which react differently to liquidity shifts.
Since liquidity conditions evolve, the offset should be adjusted from time to time to maintain predictive accuracy.
👋 How to Fit the Offset Using Vertical Reference Lines
The best way to optimize the offset is by testing historical liquidity cycles and using vertical reference lines (and/or the Date Range tool) to align liquidity trends with major price swings.
Step 1: Plot TILT and the asset you’re analyzing (e.g., BTCUSD) on the same chart.
Step 2: Add vertical lines on significant price reversals (major tops & bottoms).
Step 3: Adjust TILT’s offset forward or backward to see if liquidity trends lead or lag those reversals.
Step 4: Periodically revisit the offset setting to ensure it still aligns well with current market conditions.
Example: If BTC topped 10 bars after TILT turned red, you might set the offset to +10 to better align liquidity changes with price action. If, over time, BTC begins reacting faster or slower to liquidity shifts, the offset should be updated accordingly.
💡 Advanced Tips for TILT Users
· Combine TILT With Sentiment Indicators Like the Fear & Greed Index
· Low Fear & Expanding Liquidity → Strong buy signal for BTC & risk assets
· High Greed & Contracting Liquidity → Caution: Market topping signal
· Use With Volume & On-Chain Metrics for BTC
· Rising TILT + Increasing BTC Volume → Confirms strong accumulation
· TILT Falling + Weak BTC Volume → Potential distribution & market risk
· Watch for Divergences
If BTC makes a new high but TILT is falling, it could indicate a liquidity-driven market top.
If BTC makes a new low but TILT is rising, it could indicate a bottom forming.
Conclusion: TILT = The Macro Liquidity Key for Volatile Assets
TILT is an effective tool for timing market swings in Bitcoin, QQQ, SPY, and Gold, as these assets are highly sensitive to liquidity cycles.
· Tracks global M2 trends using liquidity proxies from major economies
· Helps confirm major tops & bottoms in risk assets
· Offset function allows precise timing of liquidity-driven market moves
· Offset should be reviewed periodically to maintain optimal accuracy
· Pairs well with sentiment tools like the Fear & Greed Index for crypto
By using TILT correctly, traders can anticipate major market turns and position ahead of liquidity-driven moves.
IBS (Internal Bar Strength) Trading Strategy for SPY and NDQImplementation by AlgoTradeKit
Overview
The IBS Trading Strategy is a daily bars long-only trading system, based on the concept of Internal Bar Strength (IBS). The strategy aims to identify potential reversals by monitoring how the previous bar’s close positions itself within its high-low range. It is suitable for stock and US indices. The default parameters are optimized for SPY/SPX and NDQ/QQQ
Strategy Concept
The Internal Bar Strength (IBS) is calculated using the formula:
IBS = (Previous Close - Previous Low) / (Previous High - Previous Low)
This value always lies between 0 and 1. An IBS value below 0.2 is typically interpreted as an oversold condition, while a value above 0.9 suggests an overbought state.
Trading Rules
- Long Entry :
- Condition 1 : IBS is below the user-defined entry threshold (default is 0.2).
- Condition 2 : The current price is above an N-period Exponential Moving Average (EMA) (default period is 252).
- Note : You can disable the EMA condition by setting the EMA period to 0.
- Long Exit
- The position is closed when IBS rises above the user-defined exit threshold (default is 0.9).
Customization Options
- IBS Entry Threshold : Adjust to set the sensitivity for entering a long trade based on oversold conditions.
- IBS Exit Threshold : Customize to define the exit point when the market becomes overbought.
- EMA Period : Set the lookback period for the EMA to align with your trend bias; disable this condition by setting the period to 0.
Risk Management & Trading Considerations
- Designed for daily charts, the strategy captures higher timeframe trends and minimizes noise.
- The entry and exit conditions are straightforward, aiming to avoid over-trading while letting clear signals dictate trade management.
- Always use proper risk management techniques and test the strategy thoroughly on historical data and in a simulated environment before applying it in live markets.
Disclaimer
This strategy is for educational and informational purposes only and does not constitute financial advice. Trading involves risk, and past performance is not indicative of future results. Always conduct your own research and consider your risk tolerance before making any trades.
Long-Only For SPXThe "GOATED Long-Only" TradingView strategy, written in Pine Script v5, is designed for long-term momentum trading with a $50 initial capital. It identifies high-momentum stocks by calculating a composite momentum score across 3-month (63 days), 6-month (126 days), 9-month (189 days), and 12-month (252 days) periods, using the formula (current_price / past_price) - 1. The strategy filters stocks with annualized volatility below 0.5 (calculated as the standard deviation of daily returns, annualized by multiplying by the square root of 252 trading days) and requires momentum to exceed a customizable threshold (default 0.0). It enters long positions when momentum becomes positive and exits when it turns negative, using stop-loss (1%) and take-profit (50%) levels to manage risk. The strategy visualizes momentum and volatility on the chart, plotting entry/exit signals as green triangles (long entry) and red triangles (long exit) for backtesting and analysis.
Put/Call RatioPut/Call Ratio Indicator
This indicator visualizes the Put/Call Ratio for various market symbols, helping traders assess market sentiment and potential reversals. It offers a dropdown menu to select from a range of Put/Call Ratios, including broad equities (CBOE), major indices (SPX, QQQ, IWM, VIX), and individual stocks (TSLA, GOOG, META, AMZN, MSFT, INTC).
The indicator plots the Put/Call Ratio with adjustable moving averages and standard deviation bands to highlight overbought or oversold conditions. A short-term moving average (default: 10 periods) is displayed with trend-based coloring, while longer-term moving averages (defaults: 30 and 200 periods) are calculated but hidden by default. Bands at 1, 1.5, and 2 standard deviations provide context for extreme readings.
Key Overbought/Oversold Signals:
Short-Term Extremes: The 10-day moving average moves beyond 1 standard deviation from the 200-day moving average, signaling potential overbought (above) or oversold (below) conditions. This will be highlighted by red or green background color.
Ratio Extremes: The Put/Call Ratio line itself crosses outside 2 standard deviations from the 200-day moving average, indicating stronger overbought or oversold zones.
Conditional coloring of the ratio line reflects its position relative to the bands, and background shading highlights when the short-term moving average crosses key levels.
Key Features:
Selectable Put/Call Ratio symbols.
Trend-colored moving averages.
Standard deviation bands for volatility analysis.
Dynamic line and background coloring for quick insights.
Usage:
Use this indicator to gauge market sentiment—high ratios may suggest bearish sentiment or oversold conditions, while low ratios may indicate bullish sentiment or overbought conditions. Combine with price action or other tools for confirmation.
[GOG] Risk-Appetite IndicatorOverall tradfi risk appetite indicator. Plotting ARKK/SPX and ARKW/SPX. Look for divergences to your risk assets to look for entries and exits. Also generally useful to compare to past peaks to spot euphoria.
ChillLax Relative Strength Line with NewHigh NewLow Blue DotThis is similar to the IBD MarketSurge (MarketSmith) Blue Dot:
This plots the Relative Strength line vs. an index (default index is SPX), with a Dot when the RS line is hitting a New High.
If the RS hits a New High over the past X bars (default is 50), it shows a Light Blue (user definable) Dot on the RS line, if RS hits New High before the instrument hits New High, it shows a bigger/darker Blue Dot. Reverse for New Lows (orange for RS NL, Red for RS NL before Price NL)
This Dot is similar to the IBD Marketsurge RS New High Blue Dot, this indicator shows all the previous dots (MarketSurge shows only the last one). This on, unlike IBD, also shows RS New Lows. This one distinguishes RS NH before Price NH, and RS NL before Price NL. Lastly, IBD's lookback period is 52 week, here it is default to 50 days, but it is changeable.
Relative Performance SuiteOverview
The Relative Performance Suite (RPS) is a versatile and comprehensive indicator designed to evaluate an asset's performance relative to a benchmark. By offering multiple methods to measure performance, including Relative Performance, Alpha, and Price Ratio, this tool helps traders and investors assess asset strength, resilience, and overall behavior in different market conditions.
Key Features:
✅ Multiple Performance Measures:
Choose from various relative performance calculations, including:
Relative Performance:
Measures how much an asset has outperformed or underperformed its benchmark over a given period.
Relative Performance (Proportional):
A proportional version of relative performance,
factoring in scaling effects.
Relative Performance (MA Based):
Uses moving averages to smooth performance fluctuations.
Alpha:
A measure of an asset’s performance relative to what would be expected based on its beta and the benchmark’s return. It represents the excess return above the risk-free rate after adjusting for market risk.
Price Ratio:
Compares asset prices directly to determine relative value over time.
✅ Customizable Moving Averages:
Apply different moving average types (SMA, EMA, SMMA, WMA, VWMA) to smooth price inputs and refine calculations.
✅ Beta Calculation:
Includes a Beta measure used in Alpha calculation, which users can toggle the visibility of helping users understand an asset's sensitivity to market movements.
✅ Risk-Free Rate Adjustment:
Incorporate risk-free rates (e.g., US Treasury yields, Fed Funds Rate) for a more accurate calculation of Alpha.
✅ Logarithmic Returns Option:
Users can switch between standard returns and log returns for more refined performance analysis.
✅ Dynamic Color Coding:
Identify outperformance or underperformance with intuitive color coding.
Option to color bars based on relative strength, making chart analysis easier.
✅ Customizable Tables for Data Display:
Overview table summarizing key metrics.
Explanation table offering insights into how values are derived.
How to Use:
Select a Benchmark: Choose a comparison symbol (e.g., TOTAL or SPX ).
Pick a Performance Metric: Use different modes to analyze relative performance.
Customize Calculation Methods: Adjust moving averages, timeframes, and log returns based on preference.
Interpret the Colors & Tables: Utilize the dynamic coloring and tables to quickly assess market conditions.
Ideal For:
Traders looking to compare individual asset performance against an index or benchmark.
Investors analyzing Alpha & Beta to understand risk-adjusted returns.
Market analysts who want a visually intuitive and data-rich performance tracking tool.
This indicator provides a powerful and flexible way to track relative asset strength, helping users make more informed trading decisions.
SPY/TLT Strategy█ STRATEGY OVERVIEW
The "SPY/TLT Strategy" is a trend-following crossover strategy designed to trade the relationship between TLT and its Simple Moving Average (SMA). The default configuration uses TLT (iShares 20+ Year Treasury Bond ETF) with a 20-period SMA, entering long positions on bullish crossovers and exiting on bearish crossunders. **This strategy is NOT optimized and performs best in trending markets.**
█ KEY FEATURES
SMA Crossover System: Uses price/SMA relationship for signal generation (Default: 20-period)
Dynamic Time Window: Configurable backtesting period (Default: 2014-2099)
Equity-Based Position Sizing: Default 100% equity allocation per trade
Real-Time Visual Feedback: Price/SMA plot with trend-state background coloring
Event-Driven Execution: Processes orders at bar close for accurate backtesting
█ SIGNAL GENERATION
1. LONG ENTRY CONDITION
TLT closing price crosses ABOVE SMA
Occurs within specified time window
Generates market order at next bar open
2. EXIT CONDITION
TLT closing price crosses BELOW SMA
Closes all open positions immediately
█ ADDITIONAL SETTINGS
SMA Period: Simple Moving Average length (Default: 20)
Start Time and End Time: The time window for trade execution (Default: 1 Jan 2014 - 1 Jan 2099)
Security Symbol: Ticker for analysis (Default: TLT)
█ PERFORMANCE OVERVIEW
Ideal Market Conditions: Strong trending environments
Potential Drawbacks: Whipsaws in range-bound markets
Backtesting results should be analyzed to optimize the MA Period and EMA Filter settings for specific instruments
BTC-SPX Momentum Gauge + EMA SignalHere's an explanation of the market dynamics and signal benefits of this script:
Momentum and Sentiment Indicator:
The script uses the momentum of the S&P 500 to change the chart's background color, providing a quick visual cue of market sentiment. Green indicates potential bullish momentum in the broader market, while red suggests bearish momentum. This can help traders gauge overall market direction at a glance.
Bitcoin Trend Analysis:
By plotting the scaled TEMA of Bitcoin (BTC), traders can see how Bitcoin's trend correlates or diverges from the current asset being analyzed. Since Bitcoin is often viewed as a hedge against traditional financial systems or inflation, its trend can signal broader economic shifts or investor sentiment towards alternative investments.
Dual Trend Confirmation:
The script offers two trend lines: one for Bitcoin and one for the current ticker. When these lines move in tandem, it might indicate a strong market trend across both traditional and crypto markets. Divergence between these lines can highlight potential market anomalies or opportunities for arbitrage or hedging.
Smoothness vs. Reactivity:
The use of TEMA for Bitcoin provides a smoother signal than a simple moving average, reducing lag while still reacting to price changes. This can be particularly useful for identifying longer-term trends in Bitcoin's volatile market. The 20-period EMA for the current ticker, on the other hand, gives a quicker response to price changes in the asset you're directly trading.
Cross-Asset Correlation:
By overlaying Bitcoin's trend on another asset's chart, traders can analyze how these markets might influence each other. For instance, if Bitcoin is in an uptrend while a traditional asset is declining, it might suggest capital rotation into cryptocurrencies.
Trading Signals:
Crossovers or divergences between the TEMA of Bitcoin and the EMA of the current ticker could be used as signals for entry or exit points. For example, if the BTC TEMA crosses above the current ticker's EMA, it might suggest a shift towards crypto assets.
Risk Management:
The visual cues from the background color and moving averages can aid in risk management. For example, trading in the direction of the momentum indicated by the background color might be seen as going with the market flow, potentially reducing risk.
Macro-Economic Insights:
The relationship between Bitcoin and traditional markets can offer insights into macroeconomic conditions, particularly related to inflation, monetary policy, and investor sentiment towards fiat currencies.
Headwind and tailwind:
Currently BTC correlated trade instruments experience headwind or tailwind from the broader market. This indicator lets the user see it to help their trade decision process.
Additional Statement:
As the market realizes the dangers of the fiat that its construct is built upon and evolves and migrates into stable money, incorruptible by inflation, this indicator will reveal the external influence of that corruptible and the internal influence of the incorruptible; having diminishing returns as the rise of stable money overtakes the treasuries of the fiat construct.
