When using the provided "coef" parameter set to the default of 0.5 it shows how most bottoms since 2013 have hit the lower band of this indicator.
The lower band is calculated as exp(coef) * sma(close)
- Use with the symbol INDEX:BTCUSD so you can see the price since 2010
- Set the timeframe to weekly
- Use logarithmic chart (toggle "log" on)
- change the coef to 0.6 for a more conservative bottom
- change the coef to 0.4 for a more conservative top
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.