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Change in Dominance

By Q_D_Nam_N_96
Title: Change in Dominance Indicator

Description:

This is a tool designed to gauge the prevailing trend in the cryptocurrency market. By analyzing the Rate of Change (ROC) in percentage terms over the previous 9 bars for BTC Dominance (BTC.D), Ethereum Dominance (ETH.D), Other Altcoins Dominance (OTHER.D), and USDT Dominance (USDT.D).

How It Works:

The indicator calculates the ROC for BTC.D, ETH.D (aggregated as part of the Altcoin market), OTHER.D (also included in the Altcoin calculation), and USDT.D.
Three lines represent the trends for Bitcoin (BTC), Altcoins (ETH and OTHER combined), and USDT respectively:

  1. Green Line: Represents the trend for BTC. A higher green line indicates a dominance of BTC in the market trend, suggesting money flow into Bitcoin.
  2. Silver Line: Indicates the Altcoin trend (combining ETH and OTHER). When the silver line is the highest among the three, it signals that Altcoins are leading the market, which can be considered bullish as it suggests money is flowing into Altcoins.
  3. Red Line: Represents the USDT trend. A dominant red line over others implies a bearish market sentiment, indicating money flow out of cryptocurrencies and into USDT.


Usage Tips:

  1. Altcoin Bullishness: When the silver line is above both the red and green lines, it suggests a bullish trend for Altcoins, indicating that money is flowing into the Altcoin sector of the market.
  2. Market Bearishness: If the red line surpasses the silver and green lines, it could be a signal that investors are moving their funds into USDT, often a sign of bearish market sentiment.
  3. BTC Bullishness: A higher green line compared to the silver and red lines implies that Bitcoin is the dominant force in the market, suggesting a bullish sentiment for BTC.
OscillatorsTrend Analysis

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.

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