EMA/MACD Market Stage Indicator Custom
Exponential Moving Average Ribbon
This price technical indicator combines a classic EMA ribbon with other essential Moving Averages, Convergences, Divergences, volatility and price ranges into a all-in-one indicator that shows broader trends, market stages, buy zones and caution zones. This structural indicator forms a solid starting point to get a better grasp of market direction and structure and is particularly powerful when used in conjunction with Money Flow and On Balance Volume for trend confirmation.
If the ribbon is green, this usually means that the price is increasing and there is a strong uptrend, which is good for trend scalping. However, bear in mind that the more extended this ribbon gets, the bigger the likelyhood of a short-term correction. If a correction happens, the ribbon turns yellow. When yellow, imagine the market is at a decision point. Swing traders may buy the dip (and go long) if volume technicals are looking good. However, if the orange box appears labeled as 'caution' zone and volume technicals suggest declining interest, it might be time to go on defence and reduce exposure or even leave the market alltogether. A small pump within an orange zone is an excellent offramp. If the the red 'Rollover' area appears, markets are highly volatile and amidst a crash. These area's may provide low entries for DCA traders, but for most traders are best to avoid. If the ribbon is red, markets continue to fall and spot traders should be very careful and trade defensively. The blue zones represent 'Accumulation' zones which indicates that most selling pressure has alleviated, which presents good opportunities to increase exposure to side ways trading or longer term accumulation and swing entries.
- If the ribbon is green, prices are rising in price technical terms. However, traders should remember this is a lagging indicator.
- If the ribbon is red, prices are falling in price technical terms. However, traders should remember this is a lagging indicator.
BTC Futures Discrepancy Custom
BTC Futures Discount vs. Premium
Futures markets are generally comprised of more professional traders as opposed to spot markets that have more retail traders. Prices don't always match up. Studying the difference in prices and behaviour of these two markets can be telling for the expected market direction. This indicator smooths out day-to-day discrepancies by intelligently using smoothing averages to project broader expectations of imminent market trend. This is a leading indicator, opposed to technical trend indicators that are generally lagging indicators.
This indicator measures the discrepancy between the average ask price for Bitcoin on the futures markets and compares it to the spot price. When on average the Bitcoin Futures are sold at a premium (meaning, the price is higher than the actual price, futures market participants are expecting prices to rise). Conversely, if the Futures Price gets sold at a discount, this indicates that prices are expected to fall or reverse to the downside. Particularly powerful when used in conjunction with other indicators.
- If this indicator flashes green, the ask price for Bitcoin on the futures markets is on average higher than the spot price. This signals that the futures market expects Bitcoin prices to rise. This signal is a leading signal and typically precedes price technical trends.
- If this indicator flashes red, the ask price for Bitcoin on the futures markets is on average lower than the spot price. This signals that the futures market expects Bitcoin prices to fall. This signal is a leading signal and typically precedes price technical trends.
MFI Secondary Trend Custom
Money Flow Index - Crypto Sector
This custom MFI indicator combines visual characteristics of the MACD, but instead derives them from the Money Flow Index. The standard Money Flow Index (MFI) is a technical oscillator that uses price and volume data for identifying overbought or oversold signals in an asset. It can also be used to spot divergences which warn of a trend change in price. The oscillator moves between 0 and 100.
Unlike conventional oscillators such as the Relative Strength Index (RSI), the Money Flow Index incorporates both price and volume data, as opposed to just price. For this reason, some analysts call MFI the volume-weighted RSI.
This indicator is best used in conjunction with the EMA Ribbon. There is two ways to use this indicator. It encompasses a trendline (plotted as an area) and a histogram which presents short-term money flow. Generally, if the trendline area is above the 0-axis, this generally supports a longer term bullish trend, in which case the area flashes green. If the MFI signal line drops below 0, the broader trend turns bearish, which is reflected in red. The short term Money Flow, represented as an histogram, represents increases or decline in volume which ussually coincide with bigger moves. The short term money flow may start flashing green or red preceding the larger trend. If the Money Flow turns negative, but the larger trend is still intact, it the histogram will remain green but fades. Conversely, if the Money Flow turns positive but the broader trend still shows volume outflow, the histogram will show a faded red.
- If the area trend is green, the money flow is in positive territory, which is generally indicative of a bullish trend.
- If the histogram is green, there is a short term inflow within a bullish structure. If the green fades, money is flowing out but does not (yet) indicate a reversal on the larger timeframe.
- If the area trend is red, the money flow is in negative territory, which is generally indicative of a bearish trend.
- If the histogram is red, there is a short term outflow within a bearish structure. If the red fades, money is flowing in but does not (yet) indicate a reversal on the larger timeframe.
OBV Primary Trend Custom
On Balance Volume - Crypto Sector
This indicator combines a 'multiple ratio' with moving averages of the On Balance Volume. The standard On-balance volume (OBV), creates a running total of positive and negative trading volume for a stock or security. One of the original momentum oscillators, OBV spawns from Joe Granville's theory that volume precedes price in an instructive, measurable fashion. The formula's calculation is simple, rising whenever volume on up days is greater than volume on down days and vice versa.
Generally, healthy market trends are supported by increasing volume, representing increased interests by traders and investors. By applying large-timeframe moving averages to the On Balance Volume, the broader trend can be algorithmically determined. If this indicator shows green, it means the On Balance Volume is increasing which is telling for a bullish trend. Since this indicator does not take price into account, it can be a leading indicator, signalling potential trend reversals before they happen. Generally, if this indicator starts to flash bearish whilst prices are still elevated, this is a precursor to falling prices and investors or traders can anticipate by lowering their long exposure. Conversely, if price structure is oversold, and this indicator starts to flash green, investors and traders seek to increase their exposure to given asset to anticipate imminent rising prices.
- Green is generally accompanied with a bullish trend, or indicates that a bullish trend is imminent.
- Red generally implies a bearish trend, or indicates that a bearish reversal is imminent.