đź”—Blockchain Fundamentals - Marketcap Multiple by Cryptorhythms
Intro A brand new original indicator to judge long term bitcoin accumulation and distribution zones. Created by myself - theheirophant.
I love the way the indicator MVRV (market value to realized value) works, but there's no way to replicate it on tradingview as it uses outside data not available in the TV ecosystem. Then while looking at various marketcap alternatives, and idea was plain in front of my face!
Looking at marketcap + top cap + average cap creates a bounded area of price as seen here
Description So I created an oscillator that shows marketcap's relation to top cap as the upper bound, and average cap as the lower bound. It then is rescaled from 0.25 to 10.
It should be viewed on a logrithmic scale and only works on the daily timeframe. You can enable/disable bar coloration and background highlighting from options.
It can be interpreted as times to accumulate and distribute on a long term basis. It would work well for trading spot markets.
The line at 0.75 acts as a sentiment indicator (above it is bullish, below it is bearish).
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I added it but I can't see it. It would be nice if you made the source code visible. a great share
theheirophant
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@Legendblackarrow, it must be on daily timeframe to work. I suggest using BLX (brave new coin) ticker as it has the best historical data.
bluesky509
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Thanks. Any chance you would share the code? For personal usage only.
MrBillions1
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What a great indicator, thanks! Would you be able to add a different colour scheme for when it gets stagnant on 0.25 as it does not go lower than this value?