Returns Since Pivot

2024년 6월 16일

Returns Since Pivot (RSP) helps to analyze the trend and seasonality.

This indicator draws 2 separate lines

• green - upward movement
  
• red - downward movement
  

Unlike other trend indicators, it's important that even while uptrend you can still see the power of downward moves that occurred during move up.

Hints and setups:
1) Helps to identify clear up trend from the noisy/mixed one: clearly growing non-interrupted green line, without significant negative red lines.

2) Helps to see potential trend reversal: for example, clear strong green line was interrupted for a brief price drop. Then the uptrend continues, you see clear green line again. But -- it's visible that new green line is way less strong, so the price might have exhausted.

3) While trading on 5 min chart, you can set RSP to 1 hour, or 4 hours to get a clear picture of price action on macro timeframe.

4) Indicator is normalized, so you can compare different coins. For example, after the big drop and rebound, you can use RSP to understand which coin had more powerful rebound, thus potentially will be a best gainer in case if the market continues go up.

2024년 6월 16일

릴리즈 노트

Returns Since Pivot (RSP) helps to analyze the trend and seasonality.

The script logic is simple:
- calculate cumulative returns (separate for positive growth and negative growth), which resets once the price pivot is being registered (i.e. price drops or pumps).
- normalize the values, so same values will mean the same thing across various symbols.
- make visual emphasis on first few bars after reset, that showed higher growth compared to average (to detect potential significant impulses, that might lead to strong trend/movement).

This indicator draws 2 lines:
green - positive growth
red - negative growth

Unlike other trend indicators, it's nice to see separate measurements for positive growth and negative growth on the same numeric scale.

Even during uptrend, you can still see the power of downward impulses and draw various conclusions based on their quantity/strength.

Hints and setups:
1) Helps to identify clear up trend from the noisy/mixed one: clearly growing non-interrupted green line, without significant negative red lines.

2) Helps to see potential trend reversal: for example, clear strong green line was interrupted for a brief price drop. Then the uptrend continues, you see clear green line again. But -- it's visible that new green line is way less strong, so the price might have exhausted.

3) While trading on 5 min chart, you can set RSP to 1 hour, or 4 hours, and get a clear picture of price action on macro timeframe.

4) Indicator is normalized, so you can compare different coins. For example, after the big drop and rebound, you can use RSP to understand which coin had more powerful rebound, thus potentially will be a best gainer in case if the market continues go up.