OPEN-SOURCE SCRIPT
Spread Analysis (COIN/BTC)
The Spread Analysis (COIN/BTC) indicator calculates the Z-score of the price ratio between Coinbase stock (
COIN) and Bitcoin (
BTC). It helps identify overbought or oversold conditions based on deviations from the historical mean of their price relationship.
Key Features:
Z-Score Calculation:
• Tracks the relative price ratio ofCOIN to $BTC.
• Compares the current ratio to its historical average, highlighting extreme overvaluation or undervaluation.
• Buy and Sell Signals:
• Buy Signal: Triggered when the Z-score is less than -2, indicatingCOIN may be undervalued relative to $BTC.
• Sell Signal: Triggered when the Z-score exceeds 2, suggestingCOIN may be overvalued relative to $BTC.
• Dynamic Z-Score Visualization:
• Blue line plots the Z-score over time.
• Dashed lines at +2 and -2 mark overbought and oversold thresholds.
• Green and red triangles highlight actionable buy and sell signals.
Use Case:
This indicator is ideal for identifying relative valuation opportunities betweenCOIN and $BTC. Use it to exploit divergences in their historical relationship and anticipate potential reversions to the mean.
Limitations:
• Best suited for range-bound markets; may produce false signals in strongly trending conditions.
• Assumes a consistent correlation betweenCOIN and BTC, which may break during independent price drivers like news or earnings.
COIN) and Bitcoin (BTC). It helps identify overbought or oversold conditions based on deviations from the historical mean of their price relationship.Key Features:
Z-Score Calculation:
• Tracks the relative price ratio of
COIN to $BTC.• Compares the current ratio to its historical average, highlighting extreme overvaluation or undervaluation.
• Buy and Sell Signals:
• Buy Signal: Triggered when the Z-score is less than -2, indicating
COIN may be undervalued relative to $BTC.• Sell Signal: Triggered when the Z-score exceeds 2, suggesting
COIN may be overvalued relative to $BTC.• Dynamic Z-Score Visualization:
• Blue line plots the Z-score over time.
• Dashed lines at +2 and -2 mark overbought and oversold thresholds.
• Green and red triangles highlight actionable buy and sell signals.
Use Case:
This indicator is ideal for identifying relative valuation opportunities between
COIN and $BTC. Use it to exploit divergences in their historical relationship and anticipate potential reversions to the mean.Limitations:
• Best suited for range-bound markets; may produce false signals in strongly trending conditions.
• Assumes a consistent correlation between
COIN and BTC, which may break during independent price drivers like news or earnings.Script open-source
Dans l'esprit de TradingView, le créateur de ce script l'a rendu open-source, afin que les traders puissent examiner et vérifier sa fonctionnalité. Bravo à l'auteur! Vous pouvez l'utiliser gratuitement, mais n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.
Script open-source
Dans l'esprit de TradingView, le créateur de ce script l'a rendu open-source, afin que les traders puissent examiner et vérifier sa fonctionnalité. Bravo à l'auteur! Vous pouvez l'utiliser gratuitement, mais n'oubliez pas que la republication du code est soumise à nos Règles.
Clause de non-responsabilité
Les informations et les publications ne sont pas destinées à être, et ne constituent pas, des conseils ou des recommandations en matière de finance, d'investissement, de trading ou d'autres types de conseils fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.