Bitfinex USD Pairs: Betas and Correlations [checkm8]Hello and welcome to my beta and correlation indicator!
This indicator is meant to be used to assess trading alternatives to BTCUSD on Bitfinex, examining alt-USD pairs that can be traded on margin. This list is as follows:
ETHUSD
LTCUSD
EOSUSD
NEOUSD
OMGUSD
XRPUSD
IOTUSD
BCHUSD
SANUSD
ETPUSD
ETCUSD
XMRUSD
ZECUSD
DSHUSD
Before dwelling further on the script, let's revisit the definitions of beta and correlation:
Beta is a statistical measure of a %-change in an asset relative to a 1% change in a benchmark. In our case - this is BTCUSD. For example, if the beta is 1.5, it means that the particular asset moves 1.5% in the same direction as the 1% change of the benchmark. If the beta is negative, the asset is moving in opposite direction of the benchmark. Note: beta is not confined to any range.
Correlation is a statistical measure of the relationship between two assets, from a range of +1 to -1, where a score of +1 implies perfect positive correlation (prices move in the same direction), -1 implies perfect negative correlation (inverse relationship), and 0 implies no relationship in price changes.
For the calculations, BITFINEX:BTCUSD is used as the benchmark.
Through the script's settings:
You can select whether to plot betas or the correlations
You can select the desired length to be used in the measure of beta and correlations
You can enable smoothing for less choppy results. This is accompanied by options to modify the smoothing length and the smoothing method, where SMA, EMA, RMA, and WMA are available.
You can enable and disable individual alt pairs from being displayed (ie. if you do not want LTCUSD plotted, you can turn it off)
Below is an example of the correlation setting.
I would recommend using a smoothing input of 3-6, on SMA, and the 4-hour timeframe for good results. I use this indicator for help in deciding what alt pairs to trade on a particular day, where you will want to trade alts with the highest correlations. Note: be weary of less liquid markets, such as ETP and SAN.
Also note: the labels shown in the snapshot are for presentation purposes only. You can enable Indicator Labels by right clicking the oscillator -> "Price Scale" -> "Indicator Labels".
Please let me know if you have any questions, suggestions, or concerns.
Happy trading!
For additional information as to why you should be using this indicator and trading alts instead of BTCUSD, please refer to my study:
Icantbelieveitsnotbutter
MTF Bitfinex Longs vs. Shorts Support/Resistance [checkm8]Hello and welcome to my multi-timeframe support and resistance indicator based on margin longs and shorts on Bitfinex :D
The premise of the script is simple. It draws support and resistance levels based on large margin movements ( effectively showing the break-even points of those positions ), where:
Longs opening and shorts closing is bullish pressure
Longs closing and shorts opening is bearish pressure
You can select your desired timeframe for the script to show the levels on. The script draws two sets of lines, one based on medium-sized movements and another based on large movements, where you can also manually input the size of the movements for it to track. By default, the script is optimized for 1-hour timeframes on BTCUSD, where the medium sized movements are set to bullish/bearish pressures of over 500 BTC, and large movements based on pressures of over 1000 BTC.
If you choose to use a different currency pair (ex. LTCUSD, ETCUSD, EOSUSD, etc..) you must adjust the volume that the script tracks , as tracking something like a 500 margin long in XRPUSD is useless. This also applies to timeframes , as timeframes lower than 1 hour may require smaller input values, while larger timeframes will require larger movements.
In addition, there is an input for the source. I recommend leaving this setting at hlc3 , because this will capture a more appropriate break-even points for the S/R levels.
A few tips:
If the current price is under a bullish support/resistance level , this implies that the bullish margin positions are underwater (the price is below their long break-evens), ie. shorts closed at the top or longs were entered at the top
If the current price is above a bullish support/resistance level , this implies that the bullish margin positions are in profit and will act as support (they will support their long break-even points)
If the current price is under a bearish support/resistance level , this implies that the bearish margin positions are in profit and will act as resistance (the price is below their short break-evens)
If the current price is above a bearish support/resistance level , this implies that the bearish margin positions are underwater (the price is above their short break-evens), ie. shorts entered at the bottom or longs were closed at the bottom
Happy trading and feel free to reach out with feedback and suggestions! :D
Special thanks goes to oh92 for his input and feedback on the idea. Check out his profile and his vast selection of indicators in the links below!
www.tradingview.com
depthhouse.com
MTF ADX and DMI Grid with RSIHello and welcome to my latest revision of my ADX and DMI series.
This indicator features the Average Directional Index (ADX) and the Directional Moving Index (DMI), with a multi-timeframe (MTF) grid that shows you the dominant DMI on the select timeframes. There are four grid rows, allowing you to select four different timeframes to show in the study. In addition to this, the colors displayed in the grid will reflect RSI levels, when the RSIs on the select timeframes exceed 70 or 80, or fall below 30 or 20.
For example, if one of your select timeframes is 4h, the standard settings will display a blue block in the relative row of the grid if the +DMI is above the -DMI on the 4h timeframe. If the RSI exceeds 70, the shade of blue will become darker, and become even darker if the 4h RSI exceeds 80. This will apply for the inverse case, where if the -DMI is dominant, the grid will display a darker shade of red as the 4h RSI falls below 30 and 20.
The ADX is the line in the oscillator that changes between black, white, and gray. ADX will be black when it is rising, white when it is falling, and gray when it is below the key level value (default set to 20). When ADX is below 20, you can assume the dominant DMI is irrelevant as there is no real trend strength. You can change your set key value in the oscillator settings, as well as all the colors, and so on.
If you are not familiar with the ADX and DMI indicator, a useful guide can be found below:
1) An ADX reading below 20 signifies that there is no prevailing trend in play. This means that, regardless of DMI dominance, there is no real strength. This is a good measure for sideways price action.
2) If +DMI is above -DMI, this means that a bullish trend is in play, and vice versa (where a -DMI dominance shows a bearish trend in play). Make sure to pay attention to the value of ADX, as this will show the significance of DMI dominance.
3) The strongest possible position you can have is one where the DMIs have a crossover on an ADX that is perking or sloping upwards.
4) You should be exiting your positions at the peak of the ADX , shown by the color changes, as this is often the furthest extent of the dominant trend. Once the ADX tips, the trend weakens and is less likely to see continuation. NOTE: Divergences are possible, where the ADX may be falling, but the dominant trend sees continuation. This simply means that the dominant trend is weakening, but still going.
5) Speculating on DMI crossovers is dangerous, especially on larger timeframes. Be careful when doing so if you are not familiar with the calculations behind the DMIs and if you are not familiar with how movements on lower timeframes translate to larger timeframes.
Additional resources to learn about ADX & DMI:
1) seekingalpha.com
2) stockcharts.com
Previous versions:
1)
2)
Happy trading and feel free to reach out with any question, suggestions, or concerns!
MTF Center of Gravity Grid [checkm8]Hello and welcome to my multi-timeframe center of gravity (COG) grid.
Center of gravity is a zero-lag oscillator created by John Ehlers and to get a better understanding of it, you can read his original works here: www.mesasoftware.com
My oscillator features a grid from four timeframes (selected by the user), to show the whether the center of gravity line is above or below its relative EMA. You can use this indicator as a tool to spot potential changes in the trend as they occur. In addition to this, the oscillator displays the COG line, with its relative EMA, on the current timeframe.
By default:
1) The fill between the COG and the EMA will be navy blue when the COG is dominant, and maroon when the EMA is dominant.
2) The grid will show fuchsia-colored blocks when the COG is above its relative EMA on the selected MTF timeframe, and orange when the COG is below the EMA.
If you have any questions, suggestions, or concerns, feel free to reach out.
Happy trading!
MTF RSI Grid with MFI [checkm8]Hello and welcome to my version of the multi-timeframe RSI grid, with MFI.
This oscillator is relatively simple and plots four sets of timeframes (selected by the user) within the levels between 30 and 70. In addition to this, it plots the RSI from the current timeframe, as well as the MFI.
As per the default settings:
1) The grid will show lime-colored blocks when the RSI is below 20 and green blocks when RSI is below 30.
2) The grid will show red-colored blocks when RSI is above 80 and orange blocks when RSI is above 70.
3) The initial MTF setup is set to 1 Hour, 2 Hour, 3 Hour, and 4 Hour timeframes. You can adjust this to your preference in the oscillator settings.
4) The purple line is RSI, the teal line is MFI.
Note: the grid only displays RSI values, not MFI.
Happy trading!
Volatility Profit (VPI) & Bollinger Bands (BB) [checkm8]Hello and welcome to my 2-in-1 indicator of Volatility Profit Indicator and Bollinger Bands.
Volatility Profit Indicator is a script inspired by Jim Berg, from a 2005 article titled "The Truth About Volatility". This is a set of bands, where the upper band is based on a moving average of highs over a given period, added to the average true range of the period. The lower band is based on a moving average of lows over the same given period, from which the average true range is subtracted. The formula is shown below:
VPI High Band = MA(HI, type, x) + y * ATR(z)
VPI Low Band = MA(LO, type, x) - y * ATR(z)
where... type = MA Type (default to Exponential) x = MA Period (default to 13) y = True Range Multiplier (default to 2) z = True Range Period (default to 20)
Bollinger Bands should be familiar by now, but they are calculated based on a moving average of a source ( / 3), added to a particular standard deviation of the source.
This indicator:
- Allows you to choose whether you want to plot the Volatility Profit Indicator or Bollinger Bands. By default, each will show three bands.
- Has pre-made color schemes to choose from to simplify your life.
- Has smoothing for the Volatility Profit Indicator
- Allows you to choose the source for Bollinger Bands
- Allows you to select what multiplier of the average true range the Volatility Profit Indicator plots, as well as what standard deviations the Bollinger Bands show.
If you have any additional questions, concerns, or suggestions - feel free to reach out.
All the best & happy trading.
Godmode - checkm8's RevampHello and welcome to my revamp of the famous Godmode 3.1 oscillator (originally created by LazyBear, xSilas, and Ni6HTH4wK).
I wanted to create a version that improved on some of the flaws of the initial code, mainly being the use of multi-exchanges, as well as the code from the original oscillator as shown below:
godmode(src) => avg(tci(src),csi(src),mf(src),willy(src))
tradition(src) => avg(tci(src),mf(src),rsi(src, n3))
wt1 = multi?avg(godmode(src0),godmode(src1),godmode(src2),godmode(src3),godmode(src4)):tradition(src0)
wt2 = sma(wt1,6)
As you can see, the original versions of Godmode did not actually utilize the Godmode function within their scripts if you were not running the multi-exchange function. I have fixed that. This version is fully dynamic and not restricted to any particular asset or exchange pairing.
In addition, I have added the following features in the "Input" settings:
- An option to switch between the "Godmode" (avg(tci(src),csi(src),mf(src),willy(src))) calculation and "Tradition" (avg(tci(src),mf(src),rsi(src, n3))), as explained above
- The ability to switch from the original (High + Low + Close)/3 source to (High + Low)/2, (High + Open + Close + Low)/4, and just Close
- Pre-made lengths to use for the Godmode oscillator, with the option to customize and set your own
- Selection of the type of MA used for the lagging Godmode line, with options of EMA, SMA, WMA, and RMA, as well as the length used in the calculation
- The ability to enable smoothing of the leading Godmode line, with options of EMA, SMA, WMA, and RMA, as well as the length used in the calculation <-- This is awesome
- New overextensions, with different colors being displayed at 25 & 75, 20 & 80, 15 & 85, and 10 & 90 (similar to overextensions on RSI)
- The ability to display the overextensions as background color, as well as dots along the oscillator (as per original copy). There are also pre-made color schemes for the overextensions, to save you some time.
Please make yourselves comfortable with the customization settings, as they were designed to make your life easier!
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The original Godmode 3.1 can be found at the page linked below:
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If you have any questions or suggestion, feel free to reach out!
All the best and happy trading! :D
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Special thanks to:
- Original authors: LazyBear, xSilas, and Ni6HTH4wK
- Suggestions: ETCBTC, WillowGoLightly, and mobitz
- Moral support: ETCBTC
checkm8's ADX & DMI v2 with MTF Godmode CrossoversHello & welcome to my updated version of the ADX & DMI indicator.
The average directional index and directional moving indices are a godsend and I think you should incorporate it into your trading.
Here's a quick how-to:
A detailed guide is available in my first version:
Additional edits:
My indicator paints the background of the indicator green when +DMI is above -DMI and red when -DMI is above +DMI. In addition to this, the background will paint darker green when the RSI on the timeframe exceeds 70 and even darker when the RSI exceeds 80, in a +DMI dominance. The background will paint darker red when the RSI on the timeframe falls below 30 and even darker when the RSI falls below 20, in a -DMI dominance.
The indicator also displays multi-timeframe (MTF) crossovers on Godmode MACDs, plotted on the ADX line. If the dots are teal, it means that the shorter-term MA crossed above the longer-term MA (bullish), and if it is fuchsia, the shorter-term MA crossed below the longer-term MA (bearish).
Additional notes:
Additional edits:
1) Speculating on DMI crossovers is dangerous, especially on larger timeframes. Be careful when doing so if you are not familiar with the calculations behind the DMIs and if you are not familiar with how movements on lower timeframes translate to larger timeframes.
Additional resources to learn about ADX & DMI:
1) seekingalpha.com
2) stockcharts.com
Special thanks:
-xSilas, for the development of the Godmode calculations used in my indicator
-dent77x, for being a thinkpool and emotional support
-kristarling, for help with the coding
ADX + DMI v.checkm8Hello & welcome to my custom version of the ADX & DMI indicator.
The average directional index and directional moving indices are a godsend and I think you should incorporate it into your trading.
Here's a quick how-to:
The ADX , despite its name, is a directional index but only represents the strength of the dominant trend, which is marked by the DMIs ( +DMI and -DMI ). To interpret this, a rising ADX signifies that the dominant trend is gaining strength or momentum, while a falling ADX represents the weakening of the dominant trend. My indicator paints the ADX black if it is rising (trend gaining strength) and white if it is falling (trend losing strength). The ADX also has a critical level of 20, which signifies whether or not a trend actually exists. For example, if the ADX is above 20, there is a trend in effect, but if it is below 20 - there is no definite trend in play, even if the price may be rising or falling. On my indicator, the ADX turns grey when it is below 20 to signify the irrelevance of the dominant trend at such points. To better explain this, it does not matter which DMI dominates when the ADX is below 20, as it can be interpreted as a very weak move.
There are two DMIs, represented by +DMI (blue), which represents bullish momentum, and -DMI (red), which represent bearish momentum. If the +DMI dominates the -DMI , a bullish trend is most likely at play, and if the -DMI dominates the +DMI , a bearish trend most likely prevails. The ADX must be considered in this, as a +DMI dominance over -DMI when ADX is below 20 could be interpreted as "chop", with no clear directional signals, while the same dominance on a rising ADX will represent a strong momentum in favor of the dominant DMI.
The aim of the indicator is to identify trend reversals and give signals to newly developing trends. Crossovers are a key element, as they dictate which DMI dominates the playing field.
Additional notes:
1) The strongest possible position you can have is one where the DMIs have a crossover on an ADX that is perking or sloping upwards.
2) You should be exiting your positions at the peak of the ADX , shown by the color changes, as this is often the furthest extent of the dominant trend. Once the ADX tips, the trend weakens and is less likely to see continuation. NOTE: Divergences are possible, where the ADX may be falling, but the dominant trend sees continuation. This simply means that the dominant trend is weakening, but still going.
3) The indicator has green and red bars to show which trend dominates. If the +DMI is above -DMI , the area until the next crossover will be green, while a -DMI dominance over +DMI will show a red area until the crossover.
4) If you have any questions, feel free to reach out and ask me!
