This will give indication as to whether a specific altcoin is overbought or oversold, as determined by it's difference from the "altcoin index".
- if the current security is above the index, the oscillator will show above zero.
if the current security is below the index, the oscillator will show below zero.
Add it as an indicator while looking at the chart you would like to assess. Click the settings button (cog) to select which coins you would like included in the index.
You can couple this tool with the "alctoin index overlay" indicator to view the correlation.
The "altcoin index" is the average BTC price of a selection of altcoins. Therefore this is their relation to bitcoin and not any national currency. Due to this, the indicator will be useless if you try to use it with BTCUSD etc.
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.
//@version=2 //study("altcoin averages") study("altcoin index oscillator", overlay=false) curr = security(tickerid, period, ohlc4) ch1 = input(true, "include ppcbtc", bool) ch2 = input(false, "include ethbtc", bool) ch3 = input(true, "include nmcbtc", bool) ch4 = input(true, "include nxtbtc", bool) ch5 = input(true, "include xmrbtc", bool) count = ch1 + ch2 + ch3 + ch4 + ch5 ppc = iff(ch1, security("THEROCKTRADING:PPCBTC", period, ohlc4), 0) eth = iff(ch2, security("KRAKEN:ETHXBT", period, ohlc4), 0) nmc = iff(ch3, security("THEROCKTRADING:NMCBTC", period, ohlc4), 0) nxt = iff(ch4, security("HITBTC:NXTBTC", period, ohlc4), 0) xmr = iff(ch5, security("HITBTC:XMRBTC", period, ohlc4), 0) average = avg(ppc, eth, nmc, nxt, xmr) diff = (curr - average) / (average) over = diff > 0 under = diff < 0 colordef = over ? red : under ? green : white plot(diff, "osc", color=colordef, style=line) plot(1, title = "Top Line", color = white, linewidth = 1) plot(0, title = "Zero Line", color = yellow, linewidth = 1) plot(-1, title = "Bottom Line", color = white, linewidth = 1)