OPEN-SOURCE SCRIPT
ETH: Profit/Loss Momentum Meter
The "ETH: Profit/Loss Momentum Meter" is a Pine Script™ indicator designed to gauge the sentiment and momentum in the Ethereum market by analyzing the proportion of profitable versus loss-making addresses. The indicator highlights key zones on a scale from 0 to 100, each representing different levels of market sentiment and potential trader behavior.
Key Features:
Profit/Loss Calculation:
Lose Percentage: The percentage of Ethereum addresses that are currently at a loss.
Win Percentage: The percentage of Ethereum addresses that are currently in profit.
The core metric is the difference between the win percentage and the lose percentage.
Momentum Calculation:
The momentum is derived from the difference between the win and lose percentages and smoothed using a simple moving average (SMA).
Visual Representation:
Momentum Meter: The primary plot that shows the momentum value on a scale.
Threshold Lines:
Valhalla (100): The peak optimism zone.
FOMO Zone (80): Indicates strong buying interest due to fear of missing out.
Optimism Oasis (60): Moderate optimism among traders.
Bullish Bias (40): Slightly positive sentiment.
Confidence Valley (20): Moderate confidence in holding positions.
Strong Hodlers (0): Indicates strong holders with long-term conviction.
Color Indicators:
Bar Color: Changes color based on momentum:
Red tint for high momentum (>80), indicating potential overbought conditions.
Green tint for low momentum (<20), indicating potential oversold conditions.
Background Color: Highlights the background based on momentum thresholds for enhanced visual cues.
Fill Zones:
The areas between key threshold lines are filled with semi-transparent colors to visually separate different sentiment zones:
Between Valhalla and FOMO Zone: Red fill indicating high optimism.
Between Confidence Valley and Strong Hodlers: Green fill indicating strong holding sentiment.
Usage:
This indicator can be used by traders to:
Identify market sentiment and potential overbought/oversold conditions.
Make informed decisions based on the behavior of Ethereum addresses.
Spot critical sentiment zones to adjust trading strategies accordingly.
By analyzing the momentum derived from profit/loss metrics of Ethereum addresses, traders can gain insights into the market's psychological state and make better-informed trading decisions.
Key Features:
Profit/Loss Calculation:
Lose Percentage: The percentage of Ethereum addresses that are currently at a loss.
Win Percentage: The percentage of Ethereum addresses that are currently in profit.
The core metric is the difference between the win percentage and the lose percentage.
Momentum Calculation:
The momentum is derived from the difference between the win and lose percentages and smoothed using a simple moving average (SMA).
Visual Representation:
Momentum Meter: The primary plot that shows the momentum value on a scale.
Threshold Lines:
Valhalla (100): The peak optimism zone.
FOMO Zone (80): Indicates strong buying interest due to fear of missing out.
Optimism Oasis (60): Moderate optimism among traders.
Bullish Bias (40): Slightly positive sentiment.
Confidence Valley (20): Moderate confidence in holding positions.
Strong Hodlers (0): Indicates strong holders with long-term conviction.
Color Indicators:
Bar Color: Changes color based on momentum:
Red tint for high momentum (>80), indicating potential overbought conditions.
Green tint for low momentum (<20), indicating potential oversold conditions.
Background Color: Highlights the background based on momentum thresholds for enhanced visual cues.
Fill Zones:
The areas between key threshold lines are filled with semi-transparent colors to visually separate different sentiment zones:
Between Valhalla and FOMO Zone: Red fill indicating high optimism.
Between Confidence Valley and Strong Hodlers: Green fill indicating strong holding sentiment.
Usage:
This indicator can be used by traders to:
Identify market sentiment and potential overbought/oversold conditions.
Make informed decisions based on the behavior of Ethereum addresses.
Spot critical sentiment zones to adjust trading strategies accordingly.
By analyzing the momentum derived from profit/loss metrics of Ethereum addresses, traders can gain insights into the market's psychological state and make better-informed trading decisions.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
🔍 Access Investing Strategies & Indicators
📊 whop.com/marktquant
🌐 marktquant.com
Nothing shared on this page constitutes financial advice. All information, tools, and analyses are provided solely for informational and educational purposes.
📊 whop.com/marktquant
🌐 marktquant.com
Nothing shared on this page constitutes financial advice. All information, tools, and analyses are provided solely for informational and educational purposes.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
🔍 Access Investing Strategies & Indicators
📊 whop.com/marktquant
🌐 marktquant.com
Nothing shared on this page constitutes financial advice. All information, tools, and analyses are provided solely for informational and educational purposes.
📊 whop.com/marktquant
🌐 marktquant.com
Nothing shared on this page constitutes financial advice. All information, tools, and analyses are provided solely for informational and educational purposes.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.