BTC Evaluation Indicator

BTC Evaluation Indicator

The BTC Evaluation Indicator is a volatility-based tool designed to help traders evaluate Bitcoin’s price behavior relative to its moving average trend. It combines customizable moving averages with dynamic standard deviation bands to identify overbought and oversold conditions.

Key Features

Flexible Moving Averages: Choose between SMA, EMA, WMA, VWMA, HMA, or RMA for the baseline trend.

Dynamic Volatility Bands: Upper and lower bands are calculated using standard deviation, scaled by a user-defined multiplier.

Visual Clarity:

Orange line = central moving average (trend mean)

Green line = upper band (potential overbought zone)

Red line = lower band (potential oversold zone)

Shaded gray area = volatility range

Automatic Highlights: Background shading marks when price breaks above the upper band (overbought) or below the lower band (oversold).

How to Use

When price pushes above the upper band, it may indicate overextension or potential local overbought conditions.

When price falls below the lower band, it may signal undervaluation or potential oversold conditions.

The mean line acts as a dynamic equilibrium, often serving as short-term support/resistance.

This indicator is designed for Bitcoin evaluation, but it can be applied to any asset. By combining trend analysis with volatility context, it helps traders better understand when price may be stretched and when conditions are reverting to the mean.