BSI combines with onchcain analysis with data from the Bitcoin Blockchain.
This indicator has 3 components.
The full indicator, with all 3 components, only works on BTC due to limitations in the available onchain data. But the indicator can be added to other crypto asset charts as well, but then you need to disable the On-Chain data from the indicator settings.
You can adjust the other settings of the indicator as well, but we recommend keeping them stock.
We recommend to use the indicator on a , but it can we used on shorter time frames as well.
Here we'll start by going through how you can use each component individually, and then talk about how you can combine them at the end.
Let's start with component no 1, the Short Term Bias Signal. This is described with the thin red and yellow lines. When the line is yellow, it indicates a short term trend in the market. This line can work as support and as a reference point for a potential trailing stop loss. Once the price break below this yellow line, the short term trend has shifted and is now . Here, the line will turn red and it will stay red until the price breaks above this line.
Moving on to the long term trend and component no 2. This is an EMA-cloud, using two exponential moving averages with different lengths. When the shorter is above the longer , the cloud turns yellow. This indicates that the market is long term . You could look at the shift in color in the cloud as a buy/sell signal, but this is generally too lagging to be of any help. The cloud turns color too slowly in order to be used as a signal. Instead, we use the cloud in 3 ways.
1. Price in relation to the cloud. If the price is above the cloud, then we are long term . If the price is below the cloud, then we are long term .
2. As a long term area for the price. The cloud is a good area to look for rejections and turns. When the market is long term , the price tend to "come back" to the cloud when it drops (look at the 2017 bull run). It reverts back to the "mean". This means that you should be cautious when the price moves too far away from the cloud. The price always returns back to the cloud at some point. In a bear market, the cloud works in reverse. It's a where the price has a good chance of turning back down.
3. Expansion/contraction of the cloud. When the cloud is expands very quickly, it's a good sign of a top. The broader the cloud is, the higher are the chances of a shift in the long term trend.
Finally, we have the on-chain component. This is the most unique component in this indicator and something that we continue to develop and improve. As of now, this indicator will tell you if there is aggressive buying or selling in the market.
The BSI indicator is only created as RESEARCH MATERIAL for you.
It is NOT FINANCIAL ADVICE.
It is NOT LEGAL ADVICE.
THIS INDICATOR DOES NOT TELL YOU WHEN TO BUY OR WHEN TO SELL.
YOU MAKE YOUR OWN INVESTMENT DECISIONS.
Ivan on Tech is not your financial or legal adviser. We are educators and researchers.
This research report is intended as a starting point in your own due-diligence process. Your decisions regarding whether or not to invest in crypto-currencies are entirely up to you.
Any profits you make, or losses you suffer, are completely your responsibility.
Ivan on Tech does not provide individually tailored investment advice and does not take a subscriber’s or anyone’s personal circumstances into consideration when discussing investments; nor is Ivan on Tech registered as an investment adviser or broker-dealer in any jurisdiction.
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Under the hood, we have added more onchain sources, which has allowed us to pinpoint market moves way better. This introduces a new component to the chart, Onchain Triggers. These will show you when the long term Bullish or Bearish trend is likely to end - according to our on-chain data.
As you can see, this introduces 3 new symbols. I don't think they need a lot of explanation. But let me summarize:
When you see the small orange dot, it's a warning sign of a potential trend shift coming to the downside.
When you see a red arrow, it's a sign that the long term bullish trend is coming to an end.
When you see a green arrow, it's a sign that the long term bearish trend is coming to an end.
As you can see, these have been very accurate in the past. And all of these signals are based on new onchain data that we managed to pull into tradingview, including both miner-income data, bitcoin inflation numbers and transaction fees.
I'm super excited to start using this myself and I hope you will love it as much as I do. It's available right now in your account, as we speak.
We are currently working on updating the user guide to add these new features there as well.
This has now been resolved. The onchain sources for the Onchain Trend shifts are now completely independent from the exchange and price feed of the exchange. This means you will now get the same indications regardless of exchange and price feed.
Like all other onchain components, this is still only usable on Bitcoin trading pairs.
In order to get the updated version, remove the indicator from your chart and add it back on from the indicator menu.
For questions, email email@example.com.
Onchain trigger update: Orange dot replaced by orange arrow for clarity.
Unfortunately, there is nothing we can do to change the data source or try to improve it, as it's delivered 100% by tradingview.
However, we have made an attempt in this update to compensate for the fluctuations and create a better and more clear user experience. Even though we can't guarantee that this will fix the issue for ever, this should provide a more stable user experience until tradingviews partners improve their reliability.
There was a gap in the on-chain data from tradingviews sources, meaning there was one day without onchain data. This led the BSI indicator to behave weirdly. Even though the underlying data source issue is out of our control, the issue it caused has now been resolved.
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