OPEN-SOURCE SCRIPT
COIN/BTC Trend Oscillator
The COIN/BTC Trend Oscillator is a versatile tool designed to measure and visualize momentum divergences between Coinbase stock (
COIN) and Bitcoin (
BTC). It helps identify overbought and oversold conditions, while also highlighting potential trend reversals.
Key Features:
Use Case:
This indicator is ideal for trading Coinbase stock relative to Bitcoin’s momentum. It’s especially useful during strong market trends, helping traders time entries and exits based on extremes in relative performance.
Limitations:
• Performance may degrade in choppy or sideways markets.
• Assumes a strong correlation between COIN andBTC, which may not hold during independent events.
Pro Tip: Use this oscillator with broader trend confirmation tools like moving averages or RSI to improve reliability. For macro strategies, consider combining with higher timeframes for alignment.
COIN) and Bitcoin (BTC). It helps identify overbought and oversold conditions, while also highlighting potential trend reversals.Key Features:
- VWAP-Based Divergence Analysis:
• Tracks the difference between COIN andBTC relative to their respective VWAPs.
• Highlights shifts in momentum between the two assets. - Normalized Oscillator:
• Uses ATR normalization to adapt to different volatility conditions.
• Displays momentum shifts on a standardized scale for better comparability. - Overbought and Oversold Conditions:
• Identifies extremes using customizable thresholds (default: ±80).
• Dynamic background colors for quick visual identification:
• Blue for overbought zones (potential sell).
• White for oversold zones (potential buy). - Rolling Highs and Lows Detection:
• Tracks turning points in the oscillator to identify possible trend reversals.
• Useful for spotting exhaustion or accumulation phases.
Use Case:
This indicator is ideal for trading Coinbase stock relative to Bitcoin’s momentum. It’s especially useful during strong market trends, helping traders time entries and exits based on extremes in relative performance.
Limitations:
• Performance may degrade in choppy or sideways markets.
• Assumes a strong correlation between COIN and
BTC, which may not hold during independent events.Pro Tip: Use this oscillator with broader trend confirmation tools like moving averages or RSI to improve reliability. For macro strategies, consider combining with higher timeframes for alignment.
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.
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.