Quantum Dip Spectrum | QuantumResearch

🔹 Quantum DipSpectrum | QuantumResearch

Purpose:
The Quantum DipSpectrum is a market breadth indicator designed to identify broad-based oversold conditions across a basket of 40 altcoins. It helps traders detect potential accumulation phases by measuring how many assets simultaneously enter deep dip territory.

How It Works:
The script computes a “dip condition” for each of 40 altcoins. For every asset, it checks two key criteria:

Whether price is below its 10th percentile (bottom decile) over a user-defined lookback period.
Whether price is also below the median minus 3× standard deviation — a volatility-adjusted drop threshold.
If both conditions are met, the asset is counted as being in a deep dip. The total number of dipped assets is calculated and plotted as a histogram. This count — or dip breadth — provides a powerful contrarian signal when it spikes.

Threshold Alert:
A customizable threshold line lets you define when the dip count is considered significant. If the dip breadth exceeds this line, the background turns green, signaling potential market-wide undervaluation.

Key Features:

Analyzes 40 altcoins using volatility-adjusted dip detection.
Histogram of total dipped assets with real-time updates.
Adaptive color gradients to reflect the severity of dips.
Fully customizable lookback and threshold.
Works on any timeframe; designed for daily chart use by default.
Trading Application:

Spot broad capitulation events across altcoins.
Help time altcoin rotations and bottom-fishing opportunities.
Combine with BTC/ETH trend indicators for multi-layered confluence.

⚠️ This is not a buy/sell signal but a strategic market breadth tool for sentiment analysis.

Disclaimer: Past performance does not guarantee future results. This indicator is for educational and informational purposes only. Trading cryptocurrencies involves substantial risk of loss and is not suitable for every investor.