In this script I included 2 quite interesting indicators for Bitcoin:
* NVT (Network Value to Transactions Ratio) * NVTS (NVT Signal)
Both indicators are based on Bitcoin Network Value (Market Cap) and 24h transaction volume. For both these values I'm using Quandl datasets from Blockchainc.com:
NVT and NVTS are cryptocurrency's answers to P/E ratio. They can help you to understand if bitcoin is under/overvalued. When NVT or NVTS is relatively high it can be a pretty good point to short bitcoin, if it's low it good time to buy bitcoin.
NVT Ratio - was created by Willy Woo NVT Signal - was created by Dimitry Kalichkin
Because of different sources of transaction volume data, these indicators can differ in values from originals, but magnitude should be the same.
This is a pretty simple example where you can select only static overbought/oversold levels and when indicator will be above/below it you will see in changing in color.
I have many more things in my head how these indicators can be developed further and what strategies can be derived from them, but as is they can be a pretty good base for you. Will share my advanced findings later.
Hmm, Really? You'r indicator says it was good to buy at 20k (it was oversold at that price)!!!
It's look like a vertically flipped chart, it's upside-down.
It's look like a vertically flipped chart, it's upside-down.