Pi Cycle

Pi Cycle

The Pi Cycle Top Indicator uses the 111 day moving average (111DMA) and a newly created multiple of the 350 day moving average, the 350DMA x 2 (the multiple is of the price values of the 350DMA, not the number of days). For the past three market cycles, when the 111DMA moves up and crosses the 350DMA x 2 we see that it coincides with the price of Bitcoin peaking. It is also interesting to note that 350 / 111 is 3.153, which is very close to Pi = 3.142, thus the name.



Features

This script offers several customizable inputs, enabling traders to tailor the indicator to their preferences. Traders can adjust the thresholds to define the sensitivity of overbought and oversold conditions.

It has 10 available color schemes to choose from and the background coloring on the chart can be toggled on and off.



Practical Applications
This indicator is designed for traders who focus on identifying cycle extremes and potential mean reversion opportunities.

Detecting Overbought and Oversold Conditions: The indicator measures how far the price has deviated from its norm, allowing traders to identify overbought or oversold conditions with precision.

Timing Market Reversals: The indicator provides early signals of potential market reversals by highlighting when the price has moved too far away from its average, helping traders anticipate reversion opportunities