Learn hubBlogAVG TOTAL.
This indicator helps us assess, on a global level, the potential further price movement, a possible upcoming trend reversal and its direction, by comparing potential pressure on the price with potential demand on the market.
Measurement depth: 1.5-60%. Limit order analysis.
The indicator calculates an individual delta separately for each coin from the Binance spot market (around 300+ coins ), at all depths.
Then all deltas are summed up and divided by their count; the resulting value is called AVG.
As a result we get a value reflecting the average ratio of supply and demand across the whole market.
Example:
BTC at the 30% depth: $197.89 mln bid $331.67 mln ask $197.89 / $331.67 = delta BTC 30% = 0.60
ETH at the 30% depth: $101.01 mln bid $160.73 mln ask $101.01 / $160.73 = delta ETH 30% = 0.63
Calculating AVG: delta BTC 0.60 + delta ETH 0.63=1,23 / 2 (number of coins) = avg 0,615 This is what AVG 30% would be if there were only 2 coins on the market.
In our case, we calculate an individual delta for all of them (300+ coins from Binance), then sum up all the deltas and divide by their count = AVG
To open the indicator:
- go to the [DYOR] Indicators menu at the top of Multichart.
- select the TOTAL AVG indicator
To open the indicator settings:
- hover your cursor over the top left part of the opened indicator
- click ⚙(the gear icon)
To set which depths are displayed:
- in the indicator settings that open, select the STYLE tab
- select the depths you are interested in
Application strategy.
The screenshot below shows a basic strategy for working with this indicator, at the 30% depth (it identifies local moves more precisely).
To identify a potential move, we use relatively extreme values:
AVG ⩾1.20 = limit buyers dominate the market abnormally, a strong market rise is possible
AVG ⩾ 1 = limit buyers dominate the market, a decent area to build long positions.
AVG <0.65 = limit sellers dominate the market globally, a market correction is possible
*the given values are not an unconditional rule for all market phases, they only indicate an approximate range; for better results it is important to sync them with the other indicators + a local execution algorithm.
What does the AVG TOTAL indicator measure?
Correct answer: The average ratio of limit demand to limit supply across the whole market.
What can an AVG TOTAL value ⩾ 1.30 mean?
Correct answer: An abnormal dominance of limit buyers; market growth is possible.
What AVG TOTAL 30% indicator value can point to an abnormal dominance of limit sellers and a possible market correction?
Correct answer: A value <0.65
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