The idea for this indicator is simple: Without a crypto index we want to somehow understand ROC across many assets. This will average out data across the top 5 (current) cryptos and provide a benchmark index.
I've recently been looking into momentum strategies more and how to utilize ROC as part of crypto trading. This indicator was born to fill a void as there is no great index like SPY for the crypto world.
Why would you do this? This gives a picture of overall market sentiment and allows you to move stock strategies that use an index to do things like tighten SL, take positions, move to cash, etc. into the cryptocurrency market.
The plotted line is super fat so you can plot individual lines and tell the index from the individual ticker apart. My suggestion is to pair this with a ROC or SROC for individual assets and to develop strategies from there.
Notes de version
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Some quick additions based on community feedback:
Plots all the individual ROC lines by default (feedback was overwhelmingly positive that this was useful)
@gmeneguzzo, yes with CIX or TOTAL around these days it doesn't seem relevant to create a custom blended ROC as I did in this script. That said, this still can have an interesting visual comparison to show you outlier (or trending) coins in comparison to the others being benchmarked.