Bitcoin to GOLD [presentTrading]
**Introduction and How it is Different**
Unlike traditional indicators, the BTGR offers a unique perspective on market sentiment and asset valuation by juxtaposing two seemingly disparate assets: Bitcoin, the digital gold, and Gold, the traditional store of value. This article introduces an advanced version of this ratio, complete with upper and lower bands calculated using standard deviations. These bands add an extra layer of analytical depth, allowing for more nuanced trading strategies.
BTCUSD 12h bigger picture
**Economic Principles**
The BTGR is rooted in the economic principles of asset valuation and market sentiment. Gold has long been considered a safe haven asset, a place where investors park their money during times of economic uncertainty. Bitcoin, on the other hand, is often viewed as a high-risk, high-reward investment. By comparing the two, the BTGR provides insights into the broader market sentiment.
- Risk Appetite: A high BTGR indicates a bullish sentiment towards riskier assets like Bitcoin.
- Market Uncertainty: A low BTGR suggests a bearish sentiment and a flight to the safety of Gold.
- Asset Diversification: The BTGR can be used as a tool for portfolio diversification, helping investors balance risk and reward.
**How to Use It**
Setting Up the Indicator
- Platform: The indicator is designed for use on TradingView.
- Time Frame: A 480-minute time frame is recommended for more accurate signals.
- Parameters: The moving average is set at 200 periods, and the standard deviation is calculated over the same period.
**Trading Signal**
Long Entry: Consider going long when the BTGR crosses above the upper band.
Short Entry: Consider going short when the BTGR crosses below the lower band.
Note: Due to the issue that the number of trading is less than about 100 times, the corresponding strategy is not allowed to publish.
Unlike traditional indicators, the BTGR offers a unique perspective on market sentiment and asset valuation by juxtaposing two seemingly disparate assets: Bitcoin, the digital gold, and Gold, the traditional store of value. This article introduces an advanced version of this ratio, complete with upper and lower bands calculated using standard deviations. These bands add an extra layer of analytical depth, allowing for more nuanced trading strategies.
BTCUSD 12h bigger picture
**Economic Principles**
The BTGR is rooted in the economic principles of asset valuation and market sentiment. Gold has long been considered a safe haven asset, a place where investors park their money during times of economic uncertainty. Bitcoin, on the other hand, is often viewed as a high-risk, high-reward investment. By comparing the two, the BTGR provides insights into the broader market sentiment.
- Risk Appetite: A high BTGR indicates a bullish sentiment towards riskier assets like Bitcoin.
- Market Uncertainty: A low BTGR suggests a bearish sentiment and a flight to the safety of Gold.
- Asset Diversification: The BTGR can be used as a tool for portfolio diversification, helping investors balance risk and reward.
**How to Use It**
Setting Up the Indicator
- Platform: The indicator is designed for use on TradingView.
- Time Frame: A 480-minute time frame is recommended for more accurate signals.
- Parameters: The moving average is set at 200 periods, and the standard deviation is calculated over the same period.
**Trading Signal**
Long Entry: Consider going long when the BTGR crosses above the upper band.
Short Entry: Consider going short when the BTGR crosses below the lower band.
Note: Due to the issue that the number of trading is less than about 100 times, the corresponding strategy is not allowed to publish.
リリースノート:
1. Data Source Update: The GOLD data source has been changed from 'TVC:SPX' (which is actually the S&P 500 index) to 'TVC:GOLD', correctly aligning the script to compare Bitcoin against Gold prices.
2. Signal Plotting Enhancements:
2.1 Entry and Exit Signal Logic: The code now includes logic to plot entry and exit signals for both long and short positions. This is based on the BTGRatio crossing above or below the upper and lower bands respectively.
2.2 Long Entry Signal: Plotted when BTGRatio crosses above the upper_band. This indicates a potential bullish scenario.
2.3 Short Entry Signal: Plotted when BTGRatio crosses below the lower_band, suggesting a potential bearish scenario.
2.4 Long Exit Signal: Plotted when BTGRatio crosses back below the upper_band after being above it, signaling the closing of a long position.
2.5 Short Exit Signal: Plotted when BTGRatio crosses back above the lower_band after being below it, indicating the closing of a short position.
3. Improved Visualization:
3.1 The script now uses plotshape function to visually represent these trading signals on the chart. This makes it easier for traders to identify potential entry and exit points.
3.2 The shapes (shape.labelup and shape.labeldown) are used for clarity, along with distinct colors (colu for bullish and cold for bearish signals).
3.3 Custom text labels ('𝓑' for buy, '𝓢' for sell, 'Exit 𝓑', and 'Exit 𝓢') are added to each signal for better understanding.
4. Color Customization: Users can now choose colors for bullish and bearish signals via input options, making the indicator more customizable to individual preferences.
2. Signal Plotting Enhancements:
2.1 Entry and Exit Signal Logic: The code now includes logic to plot entry and exit signals for both long and short positions. This is based on the BTGRatio crossing above or below the upper and lower bands respectively.
2.2 Long Entry Signal: Plotted when BTGRatio crosses above the upper_band. This indicates a potential bullish scenario.
2.3 Short Entry Signal: Plotted when BTGRatio crosses below the lower_band, suggesting a potential bearish scenario.
2.4 Long Exit Signal: Plotted when BTGRatio crosses back below the upper_band after being above it, signaling the closing of a long position.
2.5 Short Exit Signal: Plotted when BTGRatio crosses back above the lower_band after being below it, indicating the closing of a short position.
3. Improved Visualization:
3.1 The script now uses plotshape function to visually represent these trading signals on the chart. This makes it easier for traders to identify potential entry and exit points.
3.2 The shapes (shape.labelup and shape.labeldown) are used for clarity, along with distinct colors (colu for bullish and cold for bearish signals).
3.3 Custom text labels ('𝓑' for buy, '𝓢' for sell, 'Exit 𝓑', and 'Exit 𝓢') are added to each signal for better understanding.
4. Color Customization: Users can now choose colors for bullish and bearish signals via input options, making the indicator more customizable to individual preferences.
リリースノート:
update the visualization part.
リリースノート:
update the chart mainly.
Watch patiently/ then trade