The basic idea is really simple - to detect during a bull-run , good mid-run entries or even predicting the start of a run, and the overcoming of the sell pressure, and I got this idea very naturally while looking back at my entries with ADA 6 months back. The indicator simply detects for you and alerts where reaches high reds but the actual price of the asset does not close lower than the previous open. This essentially shows a rejection of the selling pressure, and usually if either in a stagnant or will just result in a . It’s also great to detect entries into a bull-run mid way, which can happen quite often with cryptos. Due to the reliance of in this one, it’s probably best to stick with mid to low cap alt-coins, as BTC and even ETH at this point have a more complicated price action trends.
It’s built ideally for long-term timeframes, so 1D is the minimum in my opinion, and it should be used in combination with other indicators to confirm entries and market conditions, plus is VERY important when it comes to trading with as a leading indicator in lower cap alt-coins.
The blue line is an average of the over a period while the yellow is the current , this makes it easy when a anomaly occurs and essentially a massive sell-off.
The green/red lines at the bottom unimaginatively is just a simple trend indicator based of two EMAs.
I also want to attempt to make a version for smaller time-frames as well, which needs to also account for market noise and a better trend detection but that’s for a future time.
It’d be great to hear feedback and even ideas on beneficial changes!
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.