Furthermore, it can be used as a screener to find out cryptocurrencies which are accumulating momentum and tends to potentially pump or dump.
How this indicator works :
- If the Crypto-DX cross above the zero-level, it could be an indication that there is a trend reversal into upward. You should close your short position or place a long order right away.
- If the Crypto-DX cross below the zero-level, it could be an indication that there is a trend reversal into downward. You should close your long position or place a short order right away.
- If the Crypto-DX is consolidated around the zero-level, it could be an indication that the trend may be ended and followed by a sideway market. You are suggested not to place any order and wait for the market moves.
- Divergence based trading strategy is fully applicable, just like the MACD.
Screener features :
- Plot "Crypto Index" and "5 Custom Crypto"
- Plot "Crypto Index" and "Top 30 Crypto"
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.