INVITE-ONLY SCRIPT
Ethereum: Confidence Bands
Updated
Purpose of this Script
Similar to "Bitcoin: Confidence Bands", this script is designed to show regions of positive and negative overextension for Ethereum, where price is expected to either reverse long-term or at least shorter-term, using custom price loops tuned for the Ethereum case. Again, the idea is that one can be highly confident that Ethereum's price stays within the Confidence Bands, especially when looking at weekly closes. It might be wise to reduce exposure to Ethereum when price gets very near to the red band, and vice versa for an approach of the blue band. Of course this constitutes no financial advice, and one should always consider all available information for making trading decisions.
Settings
This indicator should only be used:
- with the default inputs (but of course feel free to play around a bit for testing purposes)
- on the weekly (W) time frame
- and for the following ticker setup, used to get well averaged Ethereum price data (ideally just copy this and paste it into the ticker field in the upper left area of the chart interface): (KRAKEN:ETHUSD+COINBASE:ETHUSD+BITFINEX:ETHUSD+POLONIEX:ETHUSD)/4
Otherwise the intended functionality cannot be guaranteed.
Access
For access please contact me via DM on TradingView or on Twitter (linked on my TradingView profile and in my signature).
Similar to "Bitcoin: Confidence Bands", this script is designed to show regions of positive and negative overextension for Ethereum, where price is expected to either reverse long-term or at least shorter-term, using custom price loops tuned for the Ethereum case. Again, the idea is that one can be highly confident that Ethereum's price stays within the Confidence Bands, especially when looking at weekly closes. It might be wise to reduce exposure to Ethereum when price gets very near to the red band, and vice versa for an approach of the blue band. Of course this constitutes no financial advice, and one should always consider all available information for making trading decisions.
Settings
This indicator should only be used:
- with the default inputs (but of course feel free to play around a bit for testing purposes)
- on the weekly (W) time frame
- and for the following ticker setup, used to get well averaged Ethereum price data (ideally just copy this and paste it into the ticker field in the upper left area of the chart interface): (KRAKEN:ETHUSD+COINBASE:ETHUSD+BITFINEX:ETHUSD+POLONIEX:ETHUSD)/4
Otherwise the intended functionality cannot be guaranteed.
Access
For access please contact me via DM on TradingView or on Twitter (linked on my TradingView profile and in my signature).
Release Notes
Added Accumulation Bands that can be used during the cycle accumulation phase to identify regions of over- and underextension. The acumulation phase is here defined as starting from the absolute cycle bottom and ending at the next Bitcoin halving. Outside this defined market phase the accumulation bands get increasingly inefficient as stronger impulses and crashes occur during bullmarket and bearmarket respectively, leading to frequent breaches of those bands. For bull- and bearmarkets the classic Confidence Bands should be used.The image below shows the two hitherto existing accumulation phases for Ethereum marked with blue semi-transparent boxes, and the corresponding price touches of the yellow and cyan Accumulation Bands. Note that in the second accumulation phase the March 2020 black swan liquidity crisis happened, which led to a breach of the lower Accumulation Band down to the lower Confidence Band.
https://www.tradingview.com/x/pZyR4hyS/
Note that the Accumulation Bands are hidden from the chart by default when you apply the indicator to your chart, but can be activated in the Input Settings menu.
Release Notes
Added the Resolution parameter, which should always be kept on weekly time frame in the Input Settings menu. With this, the Confidence Bands can correctly be observed on the daily (and other) time frames.Release Notes
Due to data feed problems with Poloniex exchange, it is now recommended to use the ETHEREUM ALL TIME HISTORY INDEX *or* (KRAKEN:ETHUSD+COINBASE:ETHUSD+BITFINEX:ETHUSD+BITSTAMP:ETHUSD)/4 as the ticker.Invite-only script
Access to this script is restricted to users authorized by the author and usually requires payment. You can add it to your favorites, but you will only be able to use it after requesting permission and obtaining it from its author. Contact Dean_Trader for more information, or follow the author's instructions below.
TradingView does not suggest paying for a script and using it unless you 100% trust its author and understand how the script works. In many cases, you can find a good open-source alternative for free in our Community Scripts.
Author's instructions
″All Ethereum trades based on this indicator are also discussed within DeanTrader's private groups. To gain access to those you have to purchase the full DeanTrader Swing Algo V1 Series package. Please contact me via DM on TradingView for this.
Want to use this script on a chart?
Warning: please read before requesting access.
Website (for access to my scripts): deantrader.com
Twitter (for Swing Algo footage): twitter.com/Dean_Trader
Twitter (for Swing Algo footage): twitter.com/Dean_Trader
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.