Crypto Divergence from BTC

15 ต.ค.

This script is used to indicate when price action of a crypto coin is diverging significantly from that of BTC.

Explanation of the Script:
Inputs:

roc_length: The period used for calculating the Rate of Change.
ma_length: The period used for the moving average of the ROC.
threshold: The percentage difference that indicates a divergence.

Price Data:

The script retrieves the current asset's price and Bitcoin's price.
ROC Calculation:

The ROC for both the current asset and BTC is calculated based on the defined roc_length.
Moving Averages:

Simple moving averages (SMA) of the ROC values are calculated to smooth out the data.
Divergence Detection:

The indicator checks if the current asset's ROC MA is significantly higher or lower than Bitcoin's ROC MA based on the specified threshold.
Plotting:

The script plots the ROC values and their moving averages.
It also highlights the background in green when a bullish divergence is detected (when the asset is moving up while BTC is lagging) and in red for a bearish divergence.