Asset Premium/Discount Monitor

📊 Overview
The Asset Premium/Discount Monitor is a tool for analyzing the relative value between two correlated assets. It measures when one asset is trading at a premium or discount compared to its historical relationship with another asset, helping traders identify potential mean reversion opportunities, or pairs trading opportunities.

🎯 Use Cases
Perfect for analyzing:

• MSTR vs BTCUSD - MicroStrategy's premium/discount to Bitcoin
  
• COIN vs BTCUSD - Coinbase's relative value to Bitcoin
  
• TSLA vs QQQ - Tesla's premium to tech sector
  
• Regional banks KRE vs XLF - Individual bank stocks vs financial sector
  

Any two correlated assets where relative value matters

Example of a trade: MSTR vs BTC - When indicator shows MSTR at 95% percentile (extreme premium): Short MSTR, Buy BTC. Then exit when the spread reverts to the mean, say 40-60% percentile.

🔧 How It Works
Core Calculation

• Ratio Analysis: Calculates the price ratio between your asset and the correlated asset
  
• Historical Baseline: Establishes the "normal" relationship using a 252-day moving average. You can change this.
  
• Premium Measurement: Measures current deviation from historical average as a percentage
  
• Statistical Context: Provides percentile rankings and standard deviation bands
  

The Math
Premium % = (Current Ratio / Historical Average Ratio - 1) × 100

🎨 Customization Options
Correlated Asset: Choose any symbol for comparison
Lookback Period: Adjust historical baseline (50-1000 days)
Smoothing: Reduce noise with moving average (1-50 days)
Visual Toggles: Show/hide bands and percentile lines
Color Themes: Customize premium/discount colors

📊 Interpretation Guide
Premium/Discount Reading

• Positive %: Asset trading above historical relationship (premium)
  
• Negative %: Asset trading below historical relationship (discount)
  
• Near 0%: Asset at fair value relative to correlation
  

Percentile Ranking

• 90%+: Near recent highs - potential selling opportunity
  
• 10% and below: Near recent lows - potential buying opportunity
  
• 25-75%: Normal trading range
  

Signal Classifications

• 🔴 SELL PREMIUM: Asset expensive relative to recent range
  
• 🟡 Premium Rich: Moderately expensive, monitor for reversal
  
• ⚪ NEUTRAL: Fair value territory
  
• 🟡 Discount Opportunity: Moderately cheap, potential accumulation zone
  
• 🟢 BUY DISCOUNT: Asset cheap relative to recent range
  

🚨 Built-in Alerts

• Extreme Premium Alert: Triggers when percentile > 95%
  
• Extreme Discount Alert: Triggers when percentile < 5%
  

⚠️ Important Notes

• Works best with highly correlated assets
  
• Historical relationships can change - monitor correlation strength
  
• Not investment advice - use as one factor in your analysis
  
• Backtest thoroughly before implementing any strategy
  

🔄 Updates & Future Features
This indicator will be continuously improved based on user feedback. So... please give me your feedback!