The Stablecoin Supply Ratio Oscillator (SSRO) is a cryptocurrency indicator designed for mean reversion analysis and sentiment assessment. It calculates the ratio of
Methodology:
The SSRO is calculated as follows-
method ssro(float src, array<float> stblsrc, int len) =>
float ssr = src / stblsrc.sum() // Source of the underlying divided by the sum of stablecoin sources
(ssr - ta.sma(ssr, len)) / ta.stdev(ssr, len) // Z-Score Transformed
This ratio is Z-Scored to provide a standardized measure, allowing users to identify periods of market fear or greed based on the allocation of capital between the underlying and Stablecoins (
Customization:
- Underlying Asset: SSRO is customizable to different underlying assets, offering a versatile tool for various cryptocurrencies.
- Calculation Length: Users can adjust the length of the calculation, tailoring the indicator to short or long-term analysis.
- Visualization: SSRO can be displayed as candles, providing a visual representation of premium and discount areas.
Interpretation:
Market Sentiment: Lower SSRO values may indicate market fear, suggesting a preference for stablecoins as a relatively safer haven for capital. Conversely, higher values may suggest market greed, as more capital is allocated to the underlying asset.
Utility and Use Cases:
1. Mean Reversion Analysis: SSRO identifies potential mean reversion opportunities, guiding traders on optimal entry and exit points.
2. Sentiment Analysis: The indicator provides insights into market sentiment, aiding traders in understanding market dynamics.
3. Macro Analysis: The majority of cryptos follow \ correlate to
4. Divergence Analysis: SSRO divergence from price trends can signal potential reversals, providing traders with additional confirmation for their decisions.
The Stablecoin Supply Ratio Oscillator is a valuable tool for cryptocurrency traders, offering a nuanced perspective on market sentiment and mean reversion opportunities. Its customization options and visual representation make it a versatile and powerful addition to the crypto analyst's toolkit.
Информация о релизе:
Removed USDD
Информация о релизе:
improved methodology, added support for plot export to new SuperTrend ToolKit
Информация о релизе:
Removed BUSD
Tip Jar: 0x7B2107b1c72B40BD2a311fb6Ff64fE98861468E4