Adapted RSI w/ Multi-Asset Regime Detection v1.1The relative strength index (RSI) is a momentum indicator used in technical analysis. RSI measures the speed and magnitude of an asset's recent price changes to detect overbought or oversold conditions in the price of said asset.
In addition to identifying overbought and oversold assets, the RSI can also indicate whether your desired asset may be primed for a trend reversal or a corrective pullback in price. It can signal when to buy and sell.
The RSI will oscillate between 0 and 100. Traditionally, an RSI reading of 70 or above indicates an overbought condition. A reading of 30 or below indicates an oversold condition.
The RSI is one of the most popular technical indicators. I intend to offer a fresh spin.
Adapted RSI w/ Multi-Asset Regime Detection
Our Adapted RSI makes necessary improvements to the original Relative Strength Index (RSI) by combining multi-timeframe analysis with multi-asset monitoring and providing traders with an efficient way to analyse market-wide conditions across different timeframes and assets simultaneously. The indicator automatically detects market regimes and generates clear signals based on RSI levels, presenting this data in an organised, easy-to-read format through two dynamic tables. Simplicity is key, and having access to more RSI data at any given time, allows traders to prepare more effectively, especially when trading markets that "move" together.
How we calculate the RSI
First, the RSI identifies price changes between periods, calculating gains and losses from one look-back period to the next. This look-back period averages gains and losses over 14 periods, which in this case would be 14 days, and those gains/losses are calculated based on the daily closing price. For example:
Average Gain = Sum of Gains over the past 14 days / 14
Average Loss = Sum of Losses over the past 14 days / 14
Then we calculate the Relative Strength (RS):
RS = Average Gain / Average Loss
Finally, this is converted to the RSI value:
RSI = 100 - (100 / (1 + RS))
Key Features
Our multi-timeframe RSI indicator enhances traditional technical analysis by offering synchronised Daily, Weekly, and Monthly RSI readings with automatic regime detection. The multi-asset monitoring system allows tracking of up to 10 different assets simultaneously, with pre-configured major pairs that can be customised to any asset selection. The signal generation system provides clear market guidance through automatic regime detection and a five-level signal system, all presented through a sophisticated visual interface with dynamic RSI line colouring and customisable display options.
Quick Guide to Use it
Begin by adding the indicator to your chart and configuring your preferred assets in the "Asset Comparison" settings.
Position the two information tables according to your preference.
The main table displays RSI analysis across three timeframes for your current asset, while the asset table shows a comparative analysis of all monitored assets.
Signals are colour-coded for instant recognition, with green indicating bullish conditions and red for bearish conditions. Pay special attention to regime changes and signal transitions, using multi-timeframe confluence to identify stronger signals.
How it Works (Regime Detection & Signals)
When we say 'Regime', a regime is determined by a persistent trend or in this case momentum and by leveraging this for RSI, which is a momentum oscillator, our indicator employs a relatively simple regime detection system that classifies market conditions as either Bullish (RSI > 50) or Bearish (RSI < 50). Our benchmark between a trending bullish or bearish market is equal to 50. By leveraging a simple classification system helps determine the probability of trend continuation and the weight given to various signals. Whilst we could determine a Neutral regime for consolidating markets, we have employed a 'neutral' signal generation which will be further discussed below...
Signal generation occurs across five distinct levels:
Strong Buy (RSI < 15)
Buy (RSI < 30)
Neutral (RSI 30-70)
Sell (RSI > 70)
Strong Sell (RSI > 85)
Each level represents different market conditions and probability scenarios. For instance, extreme readings (Strong Buy/Sell) indicate the highest probability of mean reversion, while neutral readings suggest equilibrium conditions where traders should focus on the overall regime bias (Bullish/Bearish momentum).
This approach offers traders a new and fresh spin on a popular and well-known tool in technical analysis, allowing traders to make better and more informed decisions from the well presented information across multiple assets and timeframes. Experienced and beginner traders alike, I hope you enjoy this adaptation.
Open-source
Crypto Arbitrage Scanner [CryptoSea]Crypto Arbitrage Scanner
The Crypto Arbitrage Scanner is an advanced tool designed to help traders identify arbitrage opportunities across multiple cryptocurrency exchanges. With the ability to compare prices, volumes, and differences in price, this indicator is a must-have for any trader seeking to exploit cross-exchange inefficiencies in real time.
Key Features
Multi-Exchange Price and Volume Comparison: Tracks data from multiple major cryptocurrency exchanges, including BINANCE, COINBASE, KUCOIN, and others, allowing traders to easily compare prices and volume across platforms.
Customizable Difference Metrics: Allows users to toggle between displaying price differences in percentages or absolute dollar values, depending on the preferred metric for arbitrage analysis.
Sorting and Filtering Options: Includes user-defined sorting options to order the data by Price, Volume, or Difference, helping to prioritize potential arbitrage opportunities based on the trader's chosen criteria.
Difference and Volume Thresholds: Users can specify the minimum volume and price difference thresholds, ensuring that only significant arbitrage opportunities are highlighted.
Real-Time Alerts: Built-in alert conditions notify users when arbitrage opportunities exceed their defined price difference thresholds, helping traders respond instantly to market movements.
The Crypto Arb Scanner displays a table of prices, volumes, and price differences across selected exchanges. Each exchange is listed along with the current close price, volume, and the difference in price compared to the average price across all exchanges. Highlighting is used to indicate significant differences that may present arbitrage opportunities.
In the example below, we can see a highlighted opportunity in green showing that the price is below the user inputed thresold.
How it Works
Data Collection: Gathers real-time volume and price data from various exchanges using a streamlined process, allowing for a detailed comparison.
Average Price Calculation: Computes the average price across all valid exchanges to identify where price discrepancies occur, providing a clear picture of arbitrage potential.
Sorting Mechanism: Utilizes custom sorting based on user preferences, making it easy to quickly analyze and identify key opportunities.
Dynamic Highlighting and Alerts: Price differences that exceed user-defined thresholds are highlighted, and alerts can be triggered for these arbitrage opportunities, allowing for a timely response.
Application
Arbitrage Trading: The Crypto Arb Scanner is ideal for traders looking to exploit price differences across exchanges, enabling efficient arbitrage opportunities.
Market Efficiency Analysis: Offers insights into the consistency of prices across exchanges, which can help gauge the efficiency and liquidity of the markets being traded.
Customizable Alerts: Set alerts based on price differences or volume, allowing traders to stay informed about changes without constantly monitoring the markets.
The Crypto Arbitrage Scanner is a powerful addition to any trader's toolkit, offering comprehensive features to detect arbitrage opportunities with confidence. With real-time monitoring, customizable metrics, and a user-friendly interface, this tool allows traders to make informed decisions and capitalize on inefficiencies across exchanges.
Advanced VWAP [CryptoSea]The Advanced VWAP is a comprehensive volume-weighted average price (VWAP) tool designed to provide traders with a deeper understanding of market trends through multi-layered VWAP analysis. This indicator is ideal for those who want to track price movements in relation to VWAP bands and detect key market levels with greater precision.
Key Features
Multi-Timeframe VWAP Bands: Includes multiple VWAP bands with different lookback periods (5, 10, 25, and 50), allowing traders to observe short-term and long-term price behavior.
Smoothed Band Options: Offers optional smoothing of VWAP bands to reduce noise and highlight significant trends more clearly.
Dynamic Median Line Display: Plots the median line of the VWAP bands, providing a reference for price movements and potential reversal zones.
VWAP Trend Strength Calculation: Measures the strength of the trend based on the price's position relative to the VWAP bands, normalized between -1 and 1 for easier interpretation.
In the example below we can see the VWAP Forecastd Cloud, which consists of multiple layers of VWAP bands with varying lookback periods, creating a dynamic forecast visualization. The cloud structure represents potential future price ranges by projecting VWAP-based bands outward, with darker areas indicating higher density and overlap of the bands, suggesting stronger support or resistance zones. This approach helps traders anticipate price movement and identify areas of potential consolidation or breakout as the price interacts with different layers of the forecast cloud.
How it Works
VWAP Calculation: Utilizes multiple VWAP calculations based on various lookback periods to capture a broad range of price behaviors. The indicator adapts to different market conditions by switching between short-term and long-term VWAP references.
Smoothing Algorithms: Provides the ability to smooth the VWAP bands using different moving average types (SMA, EMA, SMMA, WMA, VWMA) to suit various trading strategies and reduce market noise.
Trend Strength Analysis: Computes the trend strength based on the price's distance from the VWAP bands, with a value range of -1 to 1. This feature helps traders identify the intensity of uptrends and downtrends.
Alert Conditions: Includes alert options for crossing above or below the smoothed median line, as well as touching the smoothed upper or lower bands, providing timely notifications for potential trading opportunities.
This image below illustrates the use of smoothed VWAP bands, which provide a cleaner representation of the price's relationship to the VWAP by reducing market noise. The smoothed bands create a flowing cloud-like structure, making it easier to observe significant trends and potential reversal points. The circles highlight areas where the price interacts with the smoothed bands, indicating potential key levels for trend continuation or reversal. This setup helps traders focus on meaningful movements and filter out minor fluctuations, improving the identification of strategic entry and exit points based on smoother trend signals.
Application
Strategic Entry and Exit Points: Helps traders identify optimal entry and exit points based on the interaction with VWAP bands and trend strength readings.
Trend Confirmation: Assists in confirming trend strength by analyzing price movements relative to the VWAP bands and detecting significant breaks or touches.
Customized Analysis: Supports a wide range of trading styles by offering adjustable smoothing, band settings, and alert conditions to meet specific trading needs.
The Advanced VWAP by is a valuable addition to any trader's toolkit, offering versatile features to navigate different market scenarios with confidence. Whether used for day trading or longer-term analysis, this tool enhances decision-making by providing a robust view of price behavior relative to VWAP levels.
Combo VIX and DXYHello traders
It's been a while :)
I wanted to share a cool script that you can use for any asset class.
The script isn't really special - though what it displays is super helpful
Volatility Index $VIX
(Source: Wikipedia)
VIX is the ticker symbol and the popular name for the Chicago Board Options Exchange's CBOE Volatility Index, a popular measure of the stock market's expectation of volatility based on S&P 500 index options.
It is calculated and disseminated on a real-time basis by the CBOE, and is often referred to as the fear index or fear gauge.
I consider that a $VIX above 30% is a very bearish signal.
Above 30% translating investors selling in masse their assets. #blood #on #the #street
Dollar Index $DXY
(Source: Wikipedia)
The U.S. Dollar Index (USDX, DXY, DX, or, informally, the "Dixie") is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of U.S. trade partners' currencies.
The Index goes up when the U.S. dollar gains "strength" (value) when compared to other currencies.
The index is designed, maintained, and published by ICE (Intercontinental Exchange, Inc.), with the name "U.S. Dollar Index" a registered trademark.
It is a weighted geometric mean of the dollar's value relative to following select currencies:
Euro (EUR), 57.6% weight
Japanese yen (JPY) 13.6% weight
Pound sterling (GBP), 11.9% weight
Canadian dollar (CAD), 9.1% weight
Swedish krona (SEK), 4.2% weight
Swiss franc (CHF) 3.6% weight
In "bear markets", the $DXY usually goes up.
People are selling their hard assets to get some $USD in return - pumping the $DXY higher
Corollary
I'm not sure which one happens first between a bearish $DXY or bearish $DXY... though both are usually correlated
If:
- $VIX goes above 30%, usually $DXY increases and assets versus the good old' $USD drop
- $VIX goes below 30%, usually $DXY decreases and assets versus the good old' $USD increases
This is a nice lever effect between both the $VIX, $DXY and the assets versus the $USD
That's being said, I don't only use those 2 information to enter in a trade.
It gives me though a strong confirmation whenever I'm long or short
Imagine I get a LONG signal but the combo $VIX + $DXY is bearish... this tells me to be cautious and to:
- enter at a pullback
- protect my position quickly at breakeven
- take my profit quick
For a mega bull market (some called it hyperinflation), you want your fiat to drop in value for the counter-asset to increase in value.
And before you ask.... yes I look at what $DXY is doing before taking a trade on $BTCUSD :)
In other words, $DXY going down is quite bullish for Bitcoin.
Settings and Alerts
The settings by default are the ones I use for my trading.
The background colors will be colored whenever the COMBO is bullish (green) or bearish (red)
Alerts are enabled using the brand new alert function published last week by @TradingView
That's it for today, I hope you'll like it :)
PS: In this chart above, I'm using the Supertrend indicator from @KivancOzbilgic
Dave
The Lark: Directional Movement IndexAn open source version of the DMI. Mostly published for other scripters to modify.
Typical useage: www.investopedia.com
