Crosby Ratio | QuantumResearch

⚖️ Crosby Ratio | QuantumResearch

A Heikin-Ashi Smoothed Momentum Oscillator for Trend Strength & Market Rotation
Inspired by the Original Work of Bitcoin Magazine Pro
🔗 bitcoinmagazinepro.com/bitcoin-portfolio/crosby-ratio/

📘 Overview
The Crosby Ratio, as originally conceptualized by Bitcoin Magazine Pro, is a powerful tool used to evaluate the momentum and directional strength of price movement by analyzing the slope of market trends in degrees.

This enhanced implementation by QuantumResearch builds on the original concept with a Pine Script version tailored for trading charts, integrating Heikin-Ashi smoothing, ATR scaling, and customizable visual modes to fit traders' unique styles.

🧠 What Is the Crosby Ratio?
At its core, the Crosby Ratio uses angular measurement to quantify price movement — translating price trend strength into degrees. This approach allows traders to:

📈 Identify when the market is exhibiting strong upward or downward pressure
🚨 Spot overextended or overheated trend conditions
⚖ Filter out short-term noise and focus on macro momentum
🔍 1. Key Innovations by QuantumResearch
✅ Heikin-Ashi Smoothing: Reduces noise and stabilizes price action before computing momentum angles
✅ Custom atan2() Angular Function: Measures the directional angle between smoothed price changes and ATR-based scaling
✅ Dynamic Threshold Bands: Color-coded zones highlight overbought/oversold momentum regions
✅ Fully Customizable Palette: Choose from 8 visual themes with automatic color adaptation

📊 2. Interpretation Guide

Crosby Value Interpretation
> +18° 🚀 Strong bullish trend acceleration
+13° to +18° 📈 Moderate upward momentum
-9° to +13° ⚖ Neutral/transition phase
-15° to -9° 📉 Moderate bearish pressure
< -15° 🛑 Strong bearish acceleration
The indicator also features background shading when values exceed key thresholds, improving visual clarity during trend inflection points.

📌 Ideal Use Cases
🔄 Rotational Momentum Strategies: Spot the strongest assets during rapid shifts
⚡ Breakout Filtering: Confirm whether breakouts have directional strength
🧘 Noise Reduction: Heikin-Ashi smoothing filters chaotic wicks, especially in crypto
📉 Bearish Exhaustion Detection: Quickly identify when bearish momentum might be overdone
🔗 Original Inspiration & Acknowledgment
This indicator draws its core idea and naming convention from the original Crosby Ratio developed and introduced by Bitcoin Magazine Pro in their excellent write-up:
🔗 The Crosby Ratio – Bitcoin Magazine Pro

Their work on quantifying market sentiment via angle-based momentum inspired this script adaptation for TradingView with added visual features, smoothing techniques, and alerts.

⚠️ Disclaimer
This indicator is a momentum oscillator and should be used in conjunction with other confirmation tools. Market dynamics can vary, and no single metric ensures profitable trades. Always apply proper risk management.