Open Interest Valuation Heatmap [MarktQuant]
Purpose:
- Sentiment Analysis: By showing the valuation of open interest, this indicator helps users gauge market sentiment towards each asset, identifying which cryptocurrencies might be due for a correction or are potentially undervalued.
- Investment Decisions: Assists in making informed decisions about when to enter or exit positions based on the perceived overbought or oversold conditions of the market.
- Risk Assessment: Offers a visual tool for assessing which assets might carry higher risk due to overvaluation in open interest.
Features:
- Heatmap Visualization: Utilizes a color gradient to represent the valuation of open interest.
- Green indicates assets with lower valuation, potentially undervalued or with less open interest.
- Red signals assets with higher valuation, indicating they might be overbought or have significant open interest.
- Asset-Specific Analysis: Each asset is individually analyzed, allowing users to compare valuation across different cryptocurrencies directly.
- Customizable Scale: Users can adjust the scale of coloring and the position of the table.
Usage:
- Market Entry/Exit Points: Use the heatmap to decide when might be a good time to buy into an asset (when it's in the green, indicating lower open interest valuation) or sell (when it's in the red, indicating higher valuation).
- Diversification: Helps in diversifying portfolio by visually identifying which assets might be poised for growth or at risk of decline based on open interest valuation.
- Market Timing: Although not a direct timing tool, understanding the valuation of open interest can help in anticipating market movements, especially in volatile crypto markets.
Limitations:
Market Dynamics: The valuation of open interest doesn't always predict price movements directly; it's an indicator of market sentiment which can change rapidly.
The Multi-Asset Valuation Heatmap Indicator is an invaluable tool for those looking to understand deeper market dynamics beyond simple price or volume changes. By focusing on the valuation of open interest, it offers a unique perspective on market conditions, potentially aiding in more strategic trading and investment decisions across a broad spectrum of cryptocurrencies.
Swapped BCH for PEPE
Invite-only script
Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact MarktQuant directly.
Note that this private, invite-only script has not been reviewed by script moderators, and its compliance with House Rules is undetermined. TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.
Author's instructions
📊 whop.com/marktquant
🌐 marktquant.com
Nothing shared on this page constitutes financial advice. All information, tools, and analyses are provided solely for informational and educational purposes.
Disclaimer
Invite-only script
Only users approved by the author can access this script. You'll need to request and get permission to use it. This is typically granted after payment. For more details, follow the author's instructions below or contact MarktQuant directly.
Note that this private, invite-only script has not been reviewed by script moderators, and its compliance with House Rules is undetermined. TradingView does NOT recommend paying for or using a script unless you fully trust its author and understand how it works. You may also find free, open-source alternatives in our community scripts.
Author's instructions
📊 whop.com/marktquant
🌐 marktquant.com
Nothing shared on this page constitutes financial advice. All information, tools, and analyses are provided solely for informational and educational purposes.