OPEN-SOURCE SCRIPT
Updated BTC - Hotness Index

### Script Description
#### BTC - Hotness Index
This Pine Script, version 4, aims to generate a "Hotness Index" for Bitcoin (BTC) trading by utilizing a Pi Cycle Top Indicator. The script operates in a daily (`1D`) time frame and involves calculating two Simple Moving Averages (SMA) based on `close` prices:
- 111-day SMA (`D_111SMA`)
- 350-day SMA (`D_350SMA`) multiplied by 2
The primary indicator (`pi_indicator`) is derived by dividing `D_111SMA` by `D_350SMA`.
##### Sell Signal
A sell signal is plotted as a histogram if `pi_indicator` crosses above 1 (`pi_plot` variable).
##### Buy Signal
A buy signal is plotted as a histogram if `pi_indicator` crosses below 0.35 (`pi_plot_buy` variable).
##### Horizontal Lines
Two horizontal lines are included to denote the "Buy Zone" and "Sell Zone":
- "Sell Zone" at `pi_indicator` level of 1
- "Buy Zone" at `pi_indicator` level of 0.35
##### Plotting
Histogram plots are used for visualizing the signals:
- Sell signals are colored red (`RGB: 255, 59, 59`)
- Buy signals are colored green (`RGB: 82, 255, 59`)
This script provides traders a visual guide for potential buy/sell opportunities based on the Pi Cycle Top Indicator and the Hotness Index for Bitcoin. It operates under the terms of the Mozilla Public License 2.0.
#### BTC - Hotness Index
This Pine Script, version 4, aims to generate a "Hotness Index" for Bitcoin (BTC) trading by utilizing a Pi Cycle Top Indicator. The script operates in a daily (`1D`) time frame and involves calculating two Simple Moving Averages (SMA) based on `close` prices:
- 111-day SMA (`D_111SMA`)
- 350-day SMA (`D_350SMA`) multiplied by 2
The primary indicator (`pi_indicator`) is derived by dividing `D_111SMA` by `D_350SMA`.
##### Sell Signal
A sell signal is plotted as a histogram if `pi_indicator` crosses above 1 (`pi_plot` variable).
##### Buy Signal
A buy signal is plotted as a histogram if `pi_indicator` crosses below 0.35 (`pi_plot_buy` variable).
##### Horizontal Lines
Two horizontal lines are included to denote the "Buy Zone" and "Sell Zone":
- "Sell Zone" at `pi_indicator` level of 1
- "Buy Zone" at `pi_indicator` level of 0.35
##### Plotting
Histogram plots are used for visualizing the signals:
- Sell signals are colored red (`RGB: 255, 59, 59`)
- Buy signals are colored green (`RGB: 82, 255, 59`)
This script provides traders a visual guide for potential buy/sell opportunities based on the Pi Cycle Top Indicator and the Hotness Index for Bitcoin. It operates under the terms of the Mozilla Public License 2.0.
Release Notes
New short term indicator add-onRelease Notes
...Release Notes
Indexed in range 0 to 1Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
For quick access on a chart, add this script to your favorites — learn more here.
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.