Multi-Frame Market Sentiment DashboardOverview
This Pine Script™ code generates a "Market Sentiment Dashboard" on TradingView, providing a visual summary of market sentiment across multiple timeframes. This tool aids traders in making informed decisions by displaying real-time sentiment analysis based on Exponential Moving Averages (EMA).
Key Features
Panel Positioning:
Custom Placement: Traders can position the dashboard at the top, middle, or bottom of the chart and align it to the left, center, or right, ensuring optimal integration with other chart elements.
Customizable Colors:
Sentiment Colors: Users can define colors for bullish, bearish, and neutral market conditions, enhancing the dashboard's readability.
Text Color: Customizable text color ensures clarity against various background colors.
Label Size:
Scalable Labels: Adjustable label sizes (from very small to very large) ensure readability across different screen sizes and resolutions.
Market Sentiment Calculation:
EMA-Based Sentiment: The dashboard calculates sentiment using a 9-period EMA. If the EMA is higher than two bars ago, the sentiment is bullish; if lower, it's bearish; otherwise, it's neutral.
Multiple Timeframes: Sentiment is calculated for several timeframes: 1 minute, 3 minutes, 5 minutes, 15 minutes, 30 minutes, 1 hour, 4 hours, and 1 day. This broad analysis provides a comprehensive view of market conditions.
Dynamic Table:
Structured Display: The dashboard uses a table to organize and display sentiment data clearly.
Real-Time Updates: The table updates in real-time, providing traders with up-to-date market information.
How It Works
EMA Calculation: The script requests EMA(9) values for each specified timeframe and compares the current EMA with the EMA from two bars ago to determine market sentiment.
Color Coding: Depending on the sentiment (Bullish, Bearish, or Neutral), the corresponding cell in the table is color-coded using predefined colors.
Table Display: The table displays the timeframe and corresponding sentiment, allowing traders to quickly assess market trends.
Benefits to Traders
Quick Assessment: Traders can quickly evaluate market sentiment across multiple timeframes without switching charts or manually calculating indicators.
Enhanced Visualization: The color-coded sentiment display makes it easy to identify trends at a glance.
Multi-Timeframe Analysis: Provides a broad view of short-term and long-term market trends, helping traders confirm trends and avoid false signals.
This dashboard enhances the overall trading experience by providing a comprehensive, customizable, and easy-to-read summary of market sentiment.
Usage Instructions
Add the Script to Your Chart: Apply the "Market Sentiment Dashboard" indicator to your TradingView chart.
Customize Settings: Adjust the panel position, colors, and label sizes to fit your preferences.
Interpret Sentiment: Use the color-coded table to quickly understand the market sentiment across different timeframes and make informed trading decisions.
Sentiment
Normalized Z-ScoreThe Normalized Z-Score indicator is designed to help traders identify overbought or oversold conditions in a security's price. This indicator can provide valuable signals for potential buy or sell opportunities by analyzing price deviations from their average values.
How It Works :
-- Z-Score Calculation:
---- The indicator calculates the Z-Score for both high and low prices over a user-defined period (default is 14 periods).
---- The Z-Score measures how far a price deviates from its average in terms of standard deviations.
-- Average Z-Score:
---- The average Z-Score is derived by taking the mean of the high and low Z-Scores.
-- Normalization:
---- The average Z-Score is then normalized to a range between -1 and 1. This helps in standardizing the indicator's values, making it easier to interpret.
-- Signal Line:
---- A signal line, which is the simple moving average (SMA) of the normalized Z-Score, is calculated to smooth out the data and highlight trends.
-- Color-Coding:
---- The signal line changes color based on its value: green when it is positive (indicating a potential buy signal) and red when it is negative (indicating a potential sell signal). This coloration is also used for the candle/bar coloration.
How to Use It:
-- Adding the Indicator:
---- Add the Normalized Z-Score indicator to your TradingView chart. It will appear in a separate pane below the price chart.
-- Interpreting the Histogram:
---- The histogram represents the normalized Z-Score. High positive values suggest overbought conditions, while low negative values suggest oversold conditions.
-- Using the Signal Line:
---- The signal line helps to confirm the conditions indicated by the histogram. A green signal line suggests a potential buying opportunity, while a red signal line suggests a potential selling opportunity.
-- Adjusting the Period:
---- You can adjust the period for the Z-Score calculation to suit your trading strategy. The default period is 14, but you can change this based on your preference.
Example Scenario:
-- Overbought Condition: If the histogram shows a high positive value and the signal line is green, the security may be overbought. This could indicate that it is a good time to consider selling.
-- Oversold Condition: If the histogram shows a low negative value and the signal line is red, the security may be oversold. This could indicate that it is a good time to consider buying.
By using the Normalized Z-Score indicator, traders can gain insights into price deviations and potential market reversals, aiding in making more informed trading decisions.
ETH Long/Short Ratio BITFINEX - (ALPHRACTAL)Indicator Description: ETH Long/Short Ratio BITFINEX - (ALPHRACTAL)
The ETH Long/Short Ratio BITFINEX - (ALPHRACTAL) indicator provides a detailed analysis of Ethereum (ETH) long and short positions in USD and USDT on the Bitfinex exchange. This indicator is ideal for traders who want to monitor market behavior and better understand the relationship between long and short positions.
Features:
USD and USDT Long/Short Ratio:
Calculates and displays the ratio between long and short ETH positions in USD and USDT.
Helps identify market trends and the relative strength between buyers and sellers.
Color Configuration:
Allows customization of chart colors for clear and distinct visualization of USD and USDT ratios.
Uses colors with adjustable transparency to enhance chart visibility.
Label Display:
Option to show or hide labels indicating the type of ratio (USD or USDT) at the latest chart value.
Labels are useful for quickly identifying the visualized ratio.
Display Control:
Option to enable or disable the display of individual USD and USDT ratio charts.
Flexibility to view only the relevant data for your analysis.
How to Use:
Add the indicator to your chart to visualize the long/short ratios of ETH in USD and USDT.
Adjust colors and transparency as per your preference for better visual distinction.
Use the option to show or hide labels for quick identification of the data.
Analyze the relationship between long and short positions to make informed trading decisions, observing market buying and selling trends.
Example Use Cases:
Market Sentiment Analysis: An increase in the Long/Short ratio may indicate bullish sentiment among traders, while a decrease may indicate bearish sentiment.
Identifying Opportunities: Significant discrepancies between USD and USDT ratios may signal arbitrage opportunities or alert to significant market movements.
This indicator is a powerful tool for Ethereum traders who want a deeper understanding of market behavior and the dynamics of long and short positions on Bitfinex. Add the ETH Long/Short Ratio BITFINEX - (ALPHRACTAL) to your technical analysis toolkit and gain an edge in your trading strategy.
M2 Global Liquidity Index
The M2 Global Liquidity Index calculates a composite index reflecting the aggregate liquidity provided by the M2 money supply of five major currencies: Chinese Yuan (CNY), US Dollar (USD), Euro (EUR), Japanese Yen (JPY), and British Pound (GBP). The M2 money supply includes cash, checking deposits, and easily convertible near money. By incorporating exchange rates (CNY/USD, EUR/USD, JPY/USD, GBP/USD), the script adjusts each country's M2 supply to a common base (USD) and sums them up to produce a global liquidity metric. This metric, plotted on a daily timeframe, provides an overview of the total liquidity available in these five significant economies.
Understanding the M2 money supply is crucial for assessing liquidity because it represents the amount of money readily available in an economy for spending and investment. Higher M2 levels generally indicate more liquidity, suggesting easier access to capital for businesses and consumers, potentially leading to economic growth. Conversely, lower M2 levels can signify tighter liquidity conditions, possibly resulting in constrained spending and investment.
Adaptive RSI StrategyThe Adaptive RSI Strategy is designed to give you an edge by adapting to changing market conditions more effectively than the traditional RSI. By adjusting dynamically to recent price movements, this strategy aims to provide more timely and accurate trade signals.
How Does It Work?
You can set the number of periods for the RSI calculation. The default is 14, but feel free to experiment with different lengths to suit your trading style.
Choose the price data to base the RSI on, typically the closing price.
Decide if you want the strategy to visually highlight upward and downward movements of the Adaptive RSI (ARSI) on the chart. This can help you quickly spot trends.
Adaptive Calculation:
Alpha: The strategy uses an adaptive factor called alpha, which changes based on recent RSI values. This makes the RSI more sensitive to recent market conditions.
Adaptive RSI (ARSI): This is the core of our strategy. It calculates the ARSI using the adaptive alpha, making it more responsive to price changes compared to the traditional RSI.
Trade Signals:
Long Entry (Buy Signal): The strategy triggers a buy signal when the ARSI value crosses above its previous value. This indicates a potential upward trend, suggesting it's a good time to enter a long position.
Short Entry (Sell Signal): Conversely, a sell signal is triggered when the ARSI value crosses below its previous value, indicating a potential downward trend and suggesting it's a good time to enter a short position.
Visual Representation:
If you enable the highlight movements feature, the ARSI line on the chart will change color: green for upward movements and red for downward movements. This makes it easier to see potential trade opportunities at a glance.
Why Use the Adaptive RSI Strategy?
Responsiveness: The adaptive nature of this strategy means it's more sensitive to market changes, helping you react quicker to new trends.
Customization: You can tailor the length of the RSI period and decide whether to highlight movements, allowing you to adapt the strategy to your specific needs and preferences.
Visual Clarity: Highlighting the ARSI movements on the chart makes it easier to spot trends and potential entry points, giving you a clearer picture of the market.
Wicks Rejection PercentagesAnalyzing wick rejection percentages can provide insights into market sentiment and potential future price movements. For example, high wick rejection percentages at key support or resistance levels may indicate strong buying or selling interest and could influence trading decisions.
RSI Screener / Heatmap - By LeviathanThis script allows you to quickly scan the market by displaying the RSI values of up to 280 tickers at once and visualizing them in an easy-to-understand format using labels with heatmap coloring.
📊 Source
The script can display the RSI from a custom timeframe (MTF) and custom length for the following data:
- Price
- OBV (On Balance Volume)
- Open Interest (for crypto tickers)
📋 Ticker Selection
This script uses a different approach for selecting tickers. Instead of inputting them one by one via input.symbol(), you can now copy-paste or edit a list of tickers in the text area window. This approach allows users to easily exchange ticker lists between each other and, for example, create multiple lists of tickers by sector, market cap, etc., and easily input them into the script. Full credit to @allanster for his functions for extracting tickers from the text. Users can switch between 7 groups of 40 tickers each, totaling 280 tickers.
🖥️ Display Types
- Screener with Labels: Each ticker has its own color-coded label located at its RSI value.
- Group Average RSI: A standard RSI plot that displays the average RSI of all tickers in the group.
- RSI Heatmap (coming soon): Color-coded rows displaying current and historical values of tickers.
- RSI Divergence Heatmap (coming soon): Color-coded rows displaying current and historical regular/hidden bullish/bearish divergences for tickers.
🎨 Appearance
Appearance is fully customizable via user inputs, allowing you to change heatmap/gradient colors, zone coloring, and more.
KillZones & Sessions [TradingFinder] Volume | Asia, London & NY🔵 Introduction
🟣 Session
The forex market operates 24 hours a day, 5 days a week, with only Saturdays and Sundays being off; traders often focus on one of the forex trading sessions instead of trying to trade in all markets 24 hours a day.
Trading sessions are time intervals during which a specific financial market is active and trades are conducted. The Asia, London, and New York sessions are the most important trading sessions throughout the 24-hour period, during which a significant amount of money and liquidity enters the market.
🟣 Kill Zone
Traders in financial markets profit from the difference between the price at which they buy or sell and the current market price. Traders have different time horizons for trading.
Among these, some traders engage in daily or even hourly trading and must operate during times when the market has desirable trading volumes and significant price movements.
Kill zones are segments of a session with higher trading volumes and price fluctuations compared to the rest of the session.
🔵 How to Use
🟣 Session Time
The "Asia Session" consists of two sessions: "Sydney" and "Tokyo." The beginning of this session, according to the "UTC" time zone, is at 23:00 and ends at 06:00. Similarly, the beginning of the "Asia KillZone," according to the "UTC" time zone, is at 23:00, and it ends at 03:55.
The "London Session" consists of two sessions: "Frankfurt" and "London." The beginning of this session, according to the "UTC" time zone, is at 07:00, and it ends at 14:25. Similarly, the beginning of the "London KillZone," according to the "UTC" time zone, is at 07:00, and it ends at 09:55.
The beginning of the "New York am" session, according to the "UTC" time zone, is at 14:30, and it ends at 19:25. Similarly, the beginning of the "New York am KillZone," according to the "UTC" time zone, is at 14:30, and it ends at 16:55.
The beginning of the "New York pm" session, according to the "UTC" time zone, is at 19:30, and it ends at 22:55. Similarly, the beginning of the "New York pm KillZone," according to the "UTC" time zone, is at 19:30, and it ends at 20:55.
Important : To prevent session overlap, the working hours of each session have slightly changed.
🔵 Features
🟣 Simultaneous Session and Kill Zone
With this indicator, you can simultaneously view the kill zone and session. High and low lines are used to indicate sessions, while filled areas with color represent kill zones. If you do not want to see kill zones, you can turn off the display settings.
🟣 Candle, Time, and Volume
Using the "More Info" feature, you can see the number of candles, elapsed time, and traded volume within the colored filled area.
🔵 Settings
•Show More Info: To display "More Info," you need to turn on this feature and turn it off whenever you don't need it.
• You can also customize these settings for each session separately :
o Display or hide session.
o Choose session color.
o Set session time range.
o Display or hide kill zone.
o Set kill zone time range.
Dual RSI Differential - Strategy [presentTrading]█ Introduction and How it is Different
The Dual RSI Differential Strategy introduces a nuanced approach to market analysis and trading decisions by utilizing two Relative Strength Index (RSI) indicators calculated over different time periods. Unlike traditional strategies that employ a single RSI and may signal premature or delayed entries, this method leverages the differential between a shorter and a longer RSI. This approach pinpoints more precise entry and exit points, providing a refined tool for traders to exploit market conditions effectively, particularly in overbought and oversold scenarios.
Most important: it is a good eductional code for swing trading.
For beginners, this Pine Script provides a complete function that includes crucial elements such as holding days and the option to configure take profit/stop loss settings:
- Hold Days: This feature ensures that trades are not exited too hastily, helping traders to ride out short-term market volatility. It's particularly valuable for swing trading where maintaining positions slightly longer can lead to capturing significant trends.
- TPSL Condition (None by default): This setting allows traders to focus solely on the strategy's robust entry and exit signals without being constrained by preset profit or loss limits. This flexibility is crucial for learning to adjust strategy settings based on personal risk tolerance and market observations.
BTCUSD 6h LS Performance
█ Strategy, How It Works: Detailed Explanation
🔶 RSI Calculation:
The RSI is a momentum oscillator that measures the speed and change of price movements. It is calculated using the formula:
RSI = 100 - (100 / (1 + RS))
Where RS (Relative Strength) = Average Gain of up periods / Average Loss of down periods.
🔶 Dual RSI Setup:
This strategy involves two RSI indicators:
RSI_Short (RSI_21): Calculated over a short period (21 days).
RSI_Long (RSI_42): Calculated over a longer period (42 days).
Differential Calculation:
The strategy focuses on the differential between these two RSIs:
RSI Differential = RSI_Long - RSI_Short
This differential helps to identify when the shorter-term sentiment diverges from longer-term trends, signaling potential trading opportunities.
BTCUSD Local picuture
🔶 Signal Triggers:
Entry Signal: A buy (long) signal is triggered when the RSI Differential exceeds -5, suggesting strengthening short-term momentum. Conversely, a sell (short) signal occurs when the RSI Differential falls below +5, indicating weakening short-term momentum.
Exit Signal: Trades are generally exited when the RSI Differential reverses past these thresholds, indicating a potential momentum shift.
█ Trade Direction
This strategy accommodates various trading preferences by allowing selections among long, short, or both directions, thus enabling traders to capitalize on diverse market movements and volatility.
█ Usage
The Dual RSI Differential Strategy is particularly suited for:
Traders who prefer a systematic approach to capture market trends.
Those who seek to minimize risks associated with rapid and unexpected market movements.
Traders who value strategies that can be finely tuned to different market conditions.
█ Default Settings
- Trading Direction: Both — allows capturing of upward and downward market movements.
- Short RSI Period: 21 days — balances sensitivity to market movements.
- Long RSI Period: 42 days — smoothens out longer-term fluctuations to provide a clearer market trend.
- RSI Difference Level: 5 — minimizes false signals by setting a moderate threshold for action.
Use Hold Days: True — introduces a temporal element to trading strategy, holding positions to potentially enhance outcomes.
- Hold Days: 5 — ensures that trades are not exited too hastily, helping to ride out short-term volatility.
- TPSL Condition: None — enables traders to focus solely on the strategy's entry and exit signals without preset profit or loss limits.
- Take Profit Percentage: 15% — aims for significant market moves to lock in profits.
- Stop Loss Percentage: 10% — safeguards against large losses, essential for long-term capital preservation.
Correlated Movement Indicator V2Hello!
This script was briefly known as as Bing Chilling. I converted this to Pine Script V5 to ensure compliance with publishing requirements.
This script tracks RSI and inserts an indicator when correlated movement is detected. Proximity of current tick to indicator origin tick determines freshness of the indicator.
DO NOT sit on the indicator for a long time. This is not a magic solution. It is very accurate but, not always precise. Ensure that you use other factors to determine the relevance of the indicator on current tick. This script can technically be used on any security/commodity/currency. Your Mileage May Vary! Proceed with caution as always.
General Workflow:
Look at proximity to where the flag is placed, general volatility, and other indicators and you can potentially determine the direction/strength. Not always the duration. The indicator could be for 30s, 1hr, 1 day, or whatever the market feels like. It depends on precision/quantity of pricing data. ex. 30min tick rate pricing vs. 1 day tick rate pricing will change the scope.
So if the time scope shows all sell from 1 week -> 3 months except for a couple recent buy indicators on the day, then it may be a bad call long term but, might be good for a short term play. Very volatile. Careful.
If it was all green with long term indicators such as 1 month -> 1 year, then it looks more like a buy and forget type strategy.
If it's all green with a recent red then you can try and figure out what the relative the bottom is so you can buy for long term at a slightly more favorable price.
Flip all that for shorting. I highly recommend AGAINST shorting since the stakes are very different and usually involves taking out what is essentially a loan to bet against the market.
This script pairs nicely with the top pick indicator when you search "Heiken Ashi". I use that to determine peaks and pits to better guess a good time to open a position.
This should be used alongside other indicators. Good for short term day trading and long term hold and forget. (Don't actually forget. Set some alerts periodically.)
Please use caution. Please do not take what I've said here as fact and diamond pepe hands bet all on green to the moon. This, like all the other strategies and indicators on this site, are used as tools to inform you about potential and to categorize/depict data in a more human recognizable way. If you have access to a paper account try there first.
Happy trading!
- Zetsu
NZTInstitutionalLevelDESCRIPTION IN ENGLISH
🔶 INTRODUCTION
NZTInstitutionalLevel is an indicator for the TradingView platform designed to display institutional levels on a price chart. This script is based on the concept of calculating significant price levels that can be used for both long-term trading and intraday operations. The indicator calculates and visualizes the levels at which large market participants , such as institutional investors and large funds , can actively participate. The displayed levels are very important , as psychologically people tend to buy or sell at these levels, which makes them a reliable support in the analysis
🔶 CONTENT
The indicator uses the analysis of support and resistance levels , which are often tested by major market players . These levels represent prices that have historically experienced significant price movements due to large trading volumes, making them relevant for future trading decisions. You may notice that price often reverses or tests these round levels. These levels are a powerful pillar of price action analysis.
🔶 KEY FEATURES
The indicator displays institutional (bank) levels . Thanks to which you can easily determine the position of major players and the direction of their capital.
Visualization customization:
Users can customize the display of levels by selecting color, thickness and line style (solid, dotted, dashed).
Adaptability:
The script adapts the level step size depending on the current price of the asset and the selected time interval, which allows it to be used in various trading conditions and for assets with different volatility and price range.
Automatic scaling:
The number of displayed levels changes depending on the selected time interval, allowing traders to focus only on significant levels without overloading the chart with unnecessary information.
🔶 SETTINGS
🔹 Show Institutional Levels (Показывать институциональные уровни)
Allows you to disable or enable the display of institutional levels.
🔹 Level color (Цвет уровней)
Allows you to customize the color of the levels.
🔹 Level thickness (Толщина уровней)
Allows you to adjust the thickness of the levels.
🔹 Level style (Стиль уровней)
Allows you to customize the levels' style.
🔶 RECOMMENDATIONS FOR USE
To use the indicator, activate it on the desired price chart through the TradingView indicator menu. Once activated, adjust the visibility, color, style and thickness of the levels according to your preferences. The indicator will automatically calculate and display institutional levels based on the current asset price and configured parameters . These levels can serve as potential points for placing buy or sell orders, setting stop losses, or taking profits.
The indicator was developed by Temirlan Tolegenov for NZT Trader Community , May 2024, Prague, Czech Republic.
ОПИСАНИЕ НА РУССКОМ ЯЗЫКЕ
🔶 ВСТУПЛЕНИЕ
NZTInstitutionalLevel – это индикатор для платформы TradingView, предназначенный для отображения институциональных уровней на ценовом графике . Этот скрипт основан на концепции вычисления значимых ценовых уровней , которые могут быть использованы как для долгосрочной торговли, так и для интрадей-операций . Индикатор рассчитывает и визуализирует уровни , на которых могут активно участвовать крупные участники рынка , такие как институциональные инвесторы и большие фонды . Отображаемые уровни очень важны , так как психологически люди склонны покупать или продавать на этих уровнях , что делает их надежной опорой при анализе.
🔶 СОДЕРЖАНИЕ
Индикатор использует анализ уровней поддержки и сопротивления , которые часто тестируются крупными игроками рынка . Эти уровни представляют собой цены, на которых исторически происходили значительные движения цен за счет больших объемов торгов, что делает их релевантными для будущих торговых решений. Вы можете заметить, что цена часто разворачивается или тестирует эти круглые уровни. Эти уровни являются мощной основой анализа price action.
🔶 КЛЮЧЕВЫЕ ОСОБЕННОСТИ
Индикатор отображает институциональные (банковские/круглые) уровни. Благодаря чему вы легко сможете определить позиции крупных игроков и направление их капиталов.
Настройка визуализации:
Пользователи могут настроить отображение уровней, выбрав цвет, толщину и стиль линий (сплошные, пунктирные, точками).
Адаптивность:
Скрипт адаптирует размер шага уровня в зависимости от текущей цены актива и выбранного временного интервала, что позволяет использовать его в различных торговых условиях и для активов с разной волатильностью и ценовым диапазоном.
Автоматическое масштабирование:
Количество отображаемых уровней меняется в зависимости от выбранного временного интервала, позволяя трейдерам сосредоточиться только на значимых уровнях, не перегружая график лишней информацией.
🔶 НАСТРОЙКИ
🔹 Показывать институциональные уровни
Позволяет отключить или включить отображение институциональных уровней.
🔹 Цвет уровней
Позволяет настроить цвет уровней.
🔹 Толщина уровней
Позволяет регулировать толщину уровней.
🔹 Стиль уровней
Позволяет настроить стиль уровней.
🔶 РЕКОМЕНДАЦИИ К ИСПОЛЬЗОВАНИЮ
Для использования индикатора, активируйте его на желаемом ценовом графике через меню индикаторов TradingView. После активации, н астройте видимость, цвет, стиль и толщину уровней в соответствии с вашими предпочтениями. Индикатор автоматически рассчитает и отобразит институциональные уровни , основываясь на текущей цене актива и настроенных параметрах . Эти уровни могут служить потенциальными точками для размещения ордеров на покупку или продажу, установления стоп-лоссов или взятия прибыли.
Индикатор разработан Темирланом Толегеновым для международного сообщества NZT Trader , Май 2024, Прага, Чешская Республика.
The indicator is published in accordance and respect to all House Rules of the TradingView platform.
Индикатор опубликован в соответствии и уважением ко всем внутренним правилами платформы TradingView.
Multi Timeframe Trend Screener [TradeDots]The "Multi Timeframe Trend Screener" is a trading indicator designed to assist traders in identifying the market trends of multiple assets within a single panel. This tool is invaluable for detecting shifts in trends, enabling traders to easily adjust their strategies under different market conditions.
HOW DOES IT WORK
Upon initialization, the indicator requires users to input two key pieces of information:
The assets to be monitored.
The timeframes to be analyzed.
The tool is capable of simultaneously tracking up to four assets across five distinct timeframes.
By specifying the type and length of the moving average, the indicator uses this data as a baseline to determine the current market trend.
A price movement below the moving average triggers a downward trend symbol (📉), indicating bearish conditions.
Conversely, a movement above the moving average displays an upward trend symbol (📈), signaling bullish conditions.
The aggregation of moving averages across various timeframes provides a comprehensive view of the overall market sentiment.
APPLICATION
In scenarios where the market consistently demonstrates an upward trend, each timeframe will display a bullish symbol. Shifts in market sentiment typically start in the shorter timeframes and can progressively affect longer ones if the trend continues.
This cascading effect allows the indicator to show all timeframes transitioning to a bearish orientation when the trend reverses.
The indicator also facilitates comparison between different assets. For assets with high correlation, a trend shift in one can often predict similar movements in correlated assets, thus allowing traders to swiftly adapt their strategies to align with new market conditions.
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
Global Net Liquidity (TG fork)Worldwide net liquidity, with trend coloring.
Global Net Liquidity attempts to represent worldwide net liquidity, and is defined as: Fed + Japan + China + UK + ECB - RRP - TGA , Where the first five components are central bank assets.
On TradingView, the indicator can be reproduced with the following equations: Global Net Liquidity = FRED:WALCL + FRED:JPNASSETS * FX_IDC:JPYUSD + CNCBBS * FX_IDC:CNYUSD + GBCBBS * FX:GBPUSD + ECBASSETSW * FX:EURUSD + RRPONTSYD + WTREGEN
However, this indicator adds a moving average cloud, and margin coloring, which eases historical trend assessment at a glance.
This indicator can be seen as an alternative representation of the accumulation/distribution indicator (and hence the same terms can be used in this description).
The Moving Average Cloud is simply the filling between the moving average (by default an EMA) and the current value. This feature was inspired by D7R ACC/DIST closed-source indicator, kudos to D7R for making such neat visual indicators.
Usage instructions:
Blue is more likely a phase of accumulation because the current value is above its historical price as defined by the moving average,
red is when this is more likely a phase of distribution.
Yellow is when the difference is below the margin, so we consider it is insignificant and that the trend is undecided. This can be disabled by setting the margin to 0.
While the color indicates if it's more likely an accumulation (blue) or distribution (red) phase or undecided (yellow), the cloud's vertical size allows to assess the strength of this tendency and the horizontal size the momentum, so that the bigger the cloud, the stronger the accumulation (if cloud is blue) or distribution (if cloud is red).
Why is that so? This is because the cloud represents the difference between the current tendency and the moving averaged past one, so a bigger cloud represents a bigger departure from recently observed tendencies. In practice, when there is accumulation, a pump in price can be expected soon, or if it already happened then it means it is indeed supported by volume, whereas if distribution, either a dump is to be expected soon, or if it already happened it means it's supported by volume.
Or maybe not necessarily a dump, but if there is a move upward in price, but the indicator indicates a strong distribution, then it means that the price movement is not supported and may not be sustainable (reversal may happen at anytime), whereas if price is going upward AND there is an accumulation (blue coloring) then it is more sustainable. This can be used to adapt strategies accordingly (risk on/risk off depending on whether there is concordance of both price and accumulation/distribution).
This indicator also includes sentiment signals that can be used to trigger alarms.
This indicator is a remix of Dharmatech's, who authored the first this Global Net Liquidity equation, kudos to them! Please show them some love if you like this indicator!
NYSE TickThe NYSE Tick indicator is a market breadth indicator used to determine short-term bullish or bearish market sentiment. The NYSE Tick index compares the number of stocks on the New York Stock Exchange that are ticking up to the number of stocks ticking down at a specific moment in time. When the NYSE Tick is hovering around the zero line, roughly the same number of stocks are ticking up as are ticking down. When the overall market is rising it will usually present on the NYSE Tick as a rise in value that will generally stay mostly above the zero line for a period of time. The opposite is true when the general market is falling and can be seen as the NYSE Tick staying mostly below the zero line. This information can be very helpful for a short-term day trader who trades a market that also follows many of these same stocks, like the E-Mini S&P 500 Futures (ES), for example. While the index can theoretically rise or fall to over ±2,000 if all stocks on the NYSE are ticking up or down at the same time, it’s generally considered an extreme movement if the NYSE Tick is ±1,000. For this reason, the indicator has default reference lines at ±1,000 and halfway marks at ±500. In order to partially smooth out the movement and make movement trends more easily read, the indicator plots the values using Heikin Ashi candles instead of the standard bars or candlesticks. The price-line value displayed is an accurate live value, however, rather than the OHLC average value of a standard Heikin Ashi candle. Since the standard hours for the NYSE are Monday – Friday, 09:30 – 16:00 EST, the indicator only plots bars during this time.
Kalman Filter Volume Bands by TenozenHello there! I am excited to introduce a new original indicator, the Kalman Filter Volume Bands. This indicator is calculated using the Kalman Filter, which is an adaptive-based smoothing quantitative tool. The Kalman Filter Volume Bands have two components that support the calculation, namely VWAP and VaR.
VWAP is used to determine the weight of the Kalman Filter Returns, but it doesn't have a significant impact on the calculation. On the other hand, VaR or Value at risk is calculated using the 99th percentile, which means that there is a 1% chance for the returns to exceed the 99th percentile level. After getting the VaR value, I manually adjust the bands based on the current market I'm trading on. I take the highest point (VaR*2) and the lowest point (-(VaR*2)) from the Kalman Filter, and then divide them into segments manually based on my preference.
This process results in 8 segments, where 2 segments near the Kalman Filter are further divided, making a total of 12 segments. These segments classify the current state of the price based on code-based coloring. The five states are very bullish, bullish, very bearish, bearish, and neutral.
I created this indicator to have an adaptive band that is not biased toward the volatility of the market. Most band-based indicators don't capture reversals that well, but the Kalman Filter Volume Bands can capture both trends and reversals. This makes it suitable for both trend-following and reversal trading approaches.
That's all for the explanation! Ciao!
Additional Reminder:
- Please use hourly timeframes or higher as lower timeframes are too noisy for reliable readings of this indicator.
Sector Rotation Hedging With Volatility Index [TradeDots]The "Sector Rotation Hedging Strategy With Volatility Index" is a comprehensive trading indicator developed to optimally leverage the S&P500 volatility index. It is designed to switch between distinct ETF sectors, strategically hedging to moderate risk exposure during harsh market volatility.
HOW DOES IT WORK
The core of this indicator is grounded on the S&P500 volatility index (VIX) close price and its 60-day moving average. This serves to determine whether the prevailing market volatility is above or below the quarterly average.
In periods of elevated market volatility, risk exposure escalates significantly. Traders retaining stocks in sectors with disproportionately high volatility face increased vulnerability to negative returns. To tackle this, our indicator employs a two-pronged approach utilizing two sequential candlestick close prices to confirm if volatility surpasses the average value.
Upon confirming above-average volatility, a hedging table is deployed to spotlight ETFs with low volatility, such as the Utilities Select Sector SPDR Fund (XLU), to derisk the overall portfolio.
Conversely, in low-volatility conditions, sectors yielding higher returns like the Technology Select Sector SPDR Fund (XLK) are preferred. The hedging table is utilized to earmark high-return sector ETFs.
Thus, during highly volatile market periods, the strategy recommends enhancing portfolio allocation to low-volatility ETFs. During low-volatility windows, the portfolio is calibrated towards high-volatility ETFs for heightened returns.
IMPORTANT CONSIDERATION
In real trading, additional considerations encompassing trading commissions, management fees, and ancillary rotation costs should be factored in. False signals may arise, potentially leading to losses from these fees.
RISK DISCLAIMER
Trading entails substantial risk, and most day traders incur losses. All content, tools, scripts, articles, and education provided by TradeDots serve purely informational and educational purposes. Past performances are not definitive predictors of future results.
RH_Previous Session CloseRaghee Horner Previous Session Close (PSC)
The RH_PSC is an automated Previous Session Close (PSC) indicator to show, at a glance, general market sentiment -- whether the market is generally bullish, bearish or neutral --for the current trading session.
The PSC plots the previous session close from the Daily candle, with a customizable table of data to show the previous price, whether or not the current price is above or below that previous close and the percentage move above or below.
It includes the ability to enable only the last session or to plot for all previous sessions continuously.
The data table is configurable for bearish, bullish or sideways coloring and can be moved to different locations to suite users preferences and charts. It can also be fully disabled.
Defaults are to show all previous sessions in a continuous plot and the data table is disabled.
What is “sentiment”?
Market sentiment reflects investors’ overall attitude toward a symbol, influenced by news, economic reports, and perceptions. It can be bullish, bearish, or neutral and significantly affects trading behavior and price movements. Bullish sentiment typically drives prices up, while bearish sentiment can cause them to fall. Understanding market sentiment is key for trend follow-through.
Why does it matter?
Effectively using sentiment allows for quicker, smarter trading decisions. As an active trader, understanding market sentiment is vital for follow-through. It shows real-time investor feelings, affecting price movements. Gauging sentiment helps you:
Anticipate Breakouts.
Time Entries and Exits.
Increase Probability of Continuation.
Mxwll Price Action Suite [Mxwll]Introducing the Mxwll Price Action Suite!
The Mxwll Price Action Suite is an all-in-one analysis indicator incorporating elements of SMC and also ideas extending beyond the trading methodology!
Features
Internal structures
External structures
Customizable Sensitivities
BoS/CHoCH
Order Blocks
HH/LH/LL/LH Areas
Rolling TF highs/lows
Rolling Volume Comparisons
Auto Fibs
And more!
The image above shows the indicator's market structure identification capabilities. Internal BoS and CHoCH structures in addition to overarching market structures are available with customizable sensitivities.
The image above shows the indicator identifying order blocks! Additionally, HH/LH/LL/LH areas are also identified.
The image above shows a rolling area of interest. These areas can be compared to supply/demand zones, where traders might consider a bargain long/short/sell area.
The indicator displays a rolling 4hr high/low and 1D high/low, alongside auto fibonacci levels with a customizable sensitivity.
Finally, the Mxwll Price Action Suite shows relevant session information.
Table information
Current Session
Countdown to session close
Next Session
Countdown to next session open
Rolling 4-Hr volume intensity
Rolling 24-Hr volume intensity
Introducing the Mxwll SMC Suite!
The Mxwll SMC Suite is an all-in-one analysis indicator incorporating elements of SMC and also ideas extending beyond the trading methodology!
Features
Internal structures
External structures
Customizable Sensitivities
BoS/CHoCH
Order Blocks
HH/LH/LL/LH Areas
Rolling TF highs/lows
Rolling Volume Comparisons
Auto Fibs
And more!
The image above shows the indicator's market structure identification capabilities. Internal BoS and CHoCH structures in addition to overarching market structures are available with customizable sensitivities.
The image above shows the indicator identifying order blocks! Additionally, HH/LH/LL/LH areas are also identified.
The image above shows a rolling area of interest. These areas can be compared to supply/demand zones, where traders might consider a bargain long/short/sell area.
The indicator displays a rolling 4hr high/low and 1D high/low, alongside auto fibonacci levels with a customizable sensitivity.
Finally, the Mxwll Price Action Suite shows relevant session information.
Table information
Current Session
Countdown to session close
Next Session
Countdown to next session open
Rolling 4-Hr volume intensity
Rolling 24-Hr volume intensity
Expanded Features of Mxwll Price Action Suite
Internal and External Structures
Internal Structures: These elements refer to the price formations and patterns that occur within a smaller scope or a specific trading session. The suite can detect intricate details like minor support/resistance levels or short-term trend reversals.
External Structures: These involve larger, more significant market patterns and trends spanning multiple sessions or time frames. This capability helps traders understand overarching market directions.
Customizable Sensitivities
Adjusting sensitivity settings allows users to tailor the indicator's responsiveness to market changes. Higher sensitivity can catch smaller fluctuations, while lower sensitivity might focus on more significant, reliable market moves.
Break of Structure (BoS) and Change of Character (CHoCH)
BoS: This feature identifies points where the price breaks a significant structure, potentially indicating a new trend or a trend reversal.
CHoCH: Detects subtle shifts in the market's behavior, which could suggest the early stages of a trend change before they become apparent to the broader market.
Order Blocks and Market Phases
Order Blocks: These are essentially price levels or zones where significant trading activities previously occurred, likely pointing to the positions of smart money.
HH/LH/LL/LH Areas: Identifying Higher Highs (HH), Lower Highs (LH), Lower Lows (LL), and Lower Highs (LH) helps in understanding the trend and market structure, aiding in predictive analysis.
Rolling Timeframe Highs/Lows and Volume Comparisons
Tracks highs and lows over specified rolling periods, providing dynamic support and resistance levels.
Compares volume data across different timeframes to assess the strength or weakness of the current price movements.
Auto Fibonacci Levels
Automatically calculates and plots Fibonacci retracement levels, a popular tool among traders to identify potential reversal points based on past movements.
Session Data and Volume Intensity
Session Information: Displays current and upcoming trading sessions along with countdown timers, which is crucial for day traders and those trading on session overlaps.
Volume Intensity: Measures and compares the volume within the last 4 hours and 24 hours to gauge market activity and potential breakout/breakdown movements.
Visualizations and Practical Use
Dynamic Visuals: The suite provides dynamic visual aids, such as real-time updating of high/low markers and Fibonacci levels, which adjust as new data comes in. This feature is critical in fast-paced markets.
Strategic Entry/Exit Points: By identifying order blocks and using Fibonacci levels, traders can pinpoint strategic entry and exit points, maximizing potential returns.
Risk Management: Enhanced features like session countdowns and volume intensity help in better risk management by providing traders with more data on market sentiment and potential volatility.
Crypto Liquidation Heatmap [LuxAlgo]The Crypto Liquidation Heatmap tool offers real-time insights into the liquidations of the top cryptocurrencies by market capitalization, presenting the current state of the market in a visually accessible format. Assets are sorted in descending order, with those experiencing the highest liquidation values placed at the top of the heatmap.
Additional details, such as the breakdown of long and short liquidation values and the current price of each asset, can be accessed by hovering over individual boxes.
🔶 USAGE
The crypto liquidation heatmap tool provides real-time insights into liquidations across all timeframes for the top 29 cryptocurrencies by market capitalization. The assets are visually represented in descending order, prioritizing assets with the highest liquidation values at the top of the heatmap.
Different colors are used to indicate whether long or short liquidations are dominant for each asset. Green boxes indicate that long liquidations surpass short liquidations, while red boxes indicate the opposite, with short liquidations exceeding long liquidations.
Hovering over each box provides additional details, such as the current price of the asset, the breakdown of long and short liquidation values, and the duration for the calculated liquidation values.
🔶 DETAILS
🔹Crypto Liquidation
Crypto liquidation refers to the process of forcibly closing a trader's positions in the cryptocurrency market. It occurs when a trader's margin account can no longer support their open positions due to significant losses or a lack of sufficient margin to meet the maintenance requirements. Liquidations can be categorized as either a long liquidation or a short liquidation.
A long liquidation occurs when long positions are being liquidated, typically due to a sudden drop in the price of the asset being traded. Traders who were bullish on the asset and had opened long positions will face losses as the market moves against them.
On the other hand, a short liquidation occurs when short positions are being liquidated, often triggered by a sudden spike in the price of the asset. Traders who were bearish on the asset and had opened short positions will face losses as the market moves against them.
🔹Liquidation Data
It's worth noting that liquidation data is not readily available on TradingView. However, we recognize the close correlation between liquidation data, trading volumes, and asset price movements. Therefore, this script analyzes accessible data sources, extracts necessary information, and offers an educated estimation of liquidation data. It's important to emphasize that the presented data doesn't reflect precise quantitative values of liquidations. Traders and analysts should instead focus on observing changes over time and identifying correlations between liquidation data and price movements.
🔶 SETTINGS
🔹Cryptocurrency Asset List
It is highly recommended to select instruments from the same exchange with the same currency to maintain proportional integrity among the chosen assets, as different exchanges may have varying trading volumes.
Supported currencies include USD, USDT, USDC, USDP, and USDD. Remember to use the same currency when selecting assets.
List of Crypto Assets: The default options feature the top 29 cryptocurrencies by market capitalization, currently listed on the Binance Exchange. Please note that only crypto assets are supported; any other asset type will not be processed or displayed. To maximize the utility of this tool, it is crucial to heed the warning message displayed above.
🔹Liquidation Heatmap Settings
Position: Specifies the placement of the liquidation heatmap on the chart.
Size: Determines the size of the liquidation heatmap displayed on the chart.
🔶 RELATED SCRIPTS
Liquidations-Meter
Liquidation-Estimates
Liquidation-Levels
Smart Money Interest Index [AlgoAlpha]🌟 Smart Money Interest Index by AlgoAlpha 🌟
Welcome to the innovative Smart Money Interest Index indicator, designed meticulously by AlgoAlpha to revolutionize the way you trade! 📈🧠 This indicator is engineered to decipher the activities of smart money investors relative to the less informed (dumb money) and dynamically display their dominance in the trading landscape through a sophisticated visual index. 🚀💹
🔑 Key Features:
- Smart vs. Dumb Money Analysis: Tracks and compares the movements of smart money (informed investors) and dumb money (general public) within the market to identify potential investment signals.
- Relative Strength Index (RSI) Based Ratios: Utilizes RSI for both smart and dumb money to create a ratio that indicates buying or selling pressures.
- Dynamic Normalization: Employs a long-term peak normalization over a customizable period to ensure the index remains relevant regardless of market conditions.
- Visual Thresholds and Signals: Highlights significant shifts in market dynamics with color-coded thresholds, making it easier to spot changes at a glance.
🛠 How to Use the Smart Money Interest Index:
🔹 🚀 Step 1: Adding the Indicator
- Add the indicator to your favourites.
- Customize the settings according to your analysis needs:
- `Index Period`, `Volume Flow Period`, `Normalization Period`, `High Interest Threshold`
🔹 📊 Step 2: Interpretation of the Index
- Monitor the index plot; a rising index suggests increasing smart money interest, potentially indicating a buying opportunity.
- A value above the high interest threshold (in yellow) highlights significant interest by smart money, suggesting a good time to buy.
🔹 🔔 Step 3: Setting Alerts
- Configure alerts to notify you when the index crosses above the set threshold, enabling you to capitalize on trading opportunities timely and efficiently.
📐 Basic Logic Overview:
The Smart Money Interest Index by AlgoAlpha provides a unique metric that contrasts the investment behaviors of informed (smart money) and general (dumb money) investors. Utilizing the Relative Strength Index (RSI), this indicator evaluates the trading pressure exerted by both groups over specified periods, then forms a ratio of these activities to identify dominance in buying or selling trends. For example, when we see dumb money selling and smart buying, this suggests that the conditions for buying the asset is optimal as smart money is willing to buy the dip. The outputs are normalized against the highest values observed in a user-defined term to maintain consistency through varying market conditions. When the index exceeds a certain threshold, it suggests that smart money presence is particularly strong, possibly indicating that smart money is looking to enter positions on the asset. This tool serves as a sophisticated visual guide to understanding market dynamics and making well-informed trading decisions based on the activities of market-savvy investors. Smart money activity is identified during areas of low volume and the opposite for dumb money, the indicator uses the NVI and PVI metrics as its foundation for smart and dumb money analysis.
📊 Enhance Your Trading Strategy:
Leverage the Smart Money Interest Index to gain deeper insights into market dynamics and enhance your decision-making process with a powerful, data-driven approach. Whether you're looking to identify entry points or set strategic exits, this tool is designed to provide you with the competitive edge you need in the fast-paced world of trading. 🌐✨
Transform your trading with the power of smart money analysis—start using the Smart Money Interest Index today! 🚀🔔
Heat Map SeasonsHeat Map Seasons indicator
Indicator offers traders a unique perspective on market dynamics by visualizing seasonal trends and deviations from typical price behavior. By blending regression analysis with a color-coded heat map, this indicator highlights periods of heightened volatility and helps identify potential shifts in market sentiment.
Summer:
In the context of the indicator, "summer" represents a period of heightened volatility and upward price momentum in the market. This is analogous to the warmer months of the year when activities are typically more vibrant and energetic. During the "summer" phase indicated by the indicator, traders may observe strong bullish trends, increased trading volumes, and larger price movements. It suggests a favorable environment for bullish strategies, such as trend following or momentum trading. However, traders should exercise caution as heightened volatility can also lead to increased risk and potential drawdowns.
Winter:
Conversely, "winter" signifies a period of decreased volatility and potentially sideways or bearish price action in the market. Similar to the colder months of the year when activities tend to slow down, the "winter" phase in the indicator suggests a quieter market environment with subdued price movements and lower trading volumes. During this phase, traders may encounter choppy price action, consolidation patterns, or even downtrends. It indicates a challenging environment for trend-following strategies and may require a more cautious approach, such as range-bound or mean-reversion trading strategies.
In summary, the "summer" and "winter" phases in the "Heat Map Seasons" indicator provide traders with valuable insights into the prevailing market sentiment and can help inform their trading decisions based on the observed levels of volatility and price momentum.
How to Use:
Watch for price bars that deviate significantly from the regression line , as these may signal potential trading opportunities.
Use the seasonal gauge to gauge the current market sentiment and adjust trading strategies accordingly.
Experiment with different settings for Length and Heat Sensitivity to customize the indicator to your trading style and preferences.
The "Heat Map Seasons" indicator can potentially identify overheated market tops and bottoms on a weekly timeframe by detecting significant deviations from the regression line and observing extreme color gradients in the heat map. Here's how it can be used for this purpose:
Observing Extreme Color Gradients:
When the market is overheated and reaches a potential top, you may observe extremely warm colors (e.g., deep red) in the heat map section of the indicator.
Traders can interpret this as a warning sign of a potential market top, indicating that bullish momentum may be reaching unsustainable levels.
Conversely, when prices deviate too far below the regression line, it may indicate oversold conditions and a potential bottom.
Potential Tops and Bottoms:
User Inputs:
Length: Determines the length of the regression analysis period.
Heat Sensitivity: Controls the sensitivity of the heat map to deviations from the regression line.
Show Regression Line: Option to display or hide the regression line on the chart
Note: This indicator is best used in conjunction with other technical analysis tools and should not be relied upon as the sole basis for trading decisions.
Open Interest Auto OverrideWhat does this “Open Interest Auto Override” Indicator
do?
Open Interest data is not supplied by every exchange to TradingView, however it is available on Binance Perpetual Futures. This script helps the crypto trader to identify the equivalent Binance Perpetual Futures Chart that has Open Interest Data available and automatically displays this on the traders chart.
How can a trader use this indicator?
This helps the trader to identify if there is Open Interest Data available in Binance and automatically displays it, making it easier to switch Coins whilst viewing the market.
What is Open Interest and how can I trade using this indicator?
Open Interest (OI) is the number of open futures contracts held by traders in active positions. The higher the value the Higher the number of open positions which indicates an increase in interest by traders in the asset.
If OI is increasing an equal number of longs and short positions are being opened.
If OI Decreases both longs and shorts are exiting the market.
If OI remains unchanged, no new contracts are entering or exiting, or an equal number of positions are being opened as there are being closed.
Open Interest can help traders by giving us a hint that a breakout may occur. If Open Interest is increasing whilst price is consolidating it may indicate that a breakout is imminent. If Open Interest is decreasing whilst price is consolidating it is likely that a false move in the form of a stop hunt may be issued prior to the actual breakout.
Usage of the Indicator:
By default the indicator will automatically use the Equivalent Binance Perpetual Chart for the Data
You can override the symbol manually if you what to view another exchanges data.
Binance Open Interest (+SMA)# Binance Open Interest + SMA
An indicator showing open interest (OI) in US dollars ($) for Binance USD-margined perpetual contracts. This means the indicator shows the total value of all open perpetual contracts on the Binance platform for the ticker being charted. As such, it can provide insights into market activity for an asset and trading interest, as rising open interest suggests many traders are opening new positions and new money is flowing into the market, and vice-versa. It is also an indicator of the liquidity of the asset's perpetuals contracts, as it reflects the amount of money in a given perpetuals market.
The candle data is shown as expected, with green candles indicating the IU at close is greater than at open, red indicating a lower OI at close than open, with the bodies indicating the open and close prices, and any wicks representing an OI value within that timeframe that went above or below the closing or opening OI.
Unlike other Binance open interest indicators on the platform, this one does not require user input and will automatically pull open interest data for the ticker being looked at, allowing for quicker access to open interest data. It also presents the open interest data in candle format, providing more detail into the open interest at a given timeframe.
Please note that this indicator will only work for assets which Binance offers USD-margined perpetual contracts for, and otherwise will not work.
## Instructions:
Simply add the indicator to your chart and open the asset you would like to chart. If a Binance perpetual contract exists for the asset, the open interest value will be charted. If no chart is generated, no Binance open interest data is available for charting.
To remove the SMA, uncheck the “SMA” box in the style section in the indicator settings. You can also change the source and length of time the SMA data is calculated from in the inputs section. By default, it is based off of the closing value and a length of 15 timeframes.
## Chart example:
The chart shows the price of Ethereum, and below it this indicator for open interest on Binance for their Ethereum perpetual contracts. We can see here open interest is rising steadily, indicating rising interest in holding perpetual contracts backed by Ethereum.
