You may select between (blue) or (pink). Each version of the Mayer Multiple has its own moving average to chart the trend of the indicator itself over time (shown in orange and green respectively for simple and weighted multiples).
All parameters are however freely configurable in settings.
The threshold value of 2.4 is set for Bitcoin and gives the level under which buys are more likely to lead to profit than not.
Why is this useful? The 200dMA is the average of the last 200 days of trading (for Bitcoin that is 28 weeks, for 5-day markets that is last 40 weeks). This gives us a number for the long-term trend of the asset. The 200dMA is important in many markets, but especially in Bitcoin. It is generally seen as the cutoff between bull and bear markets, also people think accumulating under the 200dMA is good practice in the long-term. (Imagine you had bought Bitcoin every week it was under the 200dMA in 2018/19, would you be happy now?)
So µ is the price divided by this number. It tells us how far the price is from the 200dMA. If µ < 1 then price is under 200dMA, if µ > 1 then above. We see that for most of Bitcoin's history, µ was between 1 and 2, buying when µ < 1 is always profitable! The level 2.4 is a statistical threshold, above which bitcoin is essentially in bubble territory and massively overbought. Buying here is very risky as any kind of long-term position.
Indicators are not updated on posted charts - to see the latest Mayer Multiple you have to add the indicator your interactive chart.