Degen Dominator - (Crypto Dominance Tool) - [mutantdog]

3 Apr 2023

A fairly simple one this time. Another crypto dominance tool, consider it a sequel to Dominion if you will. Ready to go out-of-the-box with a selection of presets at hand.

The premise is straightforward, rather than viewing the various marketcap dominance indexes as their standard percentage values, here we have them represented as basic oscillators. This allows for multiple indexes to be viewed in one pane and gives a decent overview of their relative changes and thus the flow of capital within the overall crypto market. As a general rule-of-thumb, when a plot is above zero then the dominance is climbing, thus capital is likely flowing in that direction. The inverse applies when below zero. When the market is quiet, all will be close to zero. Basic overbought/oversold conditions can also be inferred too.

Active as default are:

• Bitcoin (0range): BTC.D
• Ethereum (Blue): ETH.D
• Stablecoins (Red): USDT.D + USDC.D
• Altcoins (Green): 100 - (all of the above)
  
  These are plotted according to the selected oscillator preset and it's length parameter. The default is set to 'EMA Centre'. An optional RMA(3) smoothing filter is also included and active as default. Each index plot has its own colour and opacity settings available on the main page.
  
  Additionally, the following are also available (deactivated as default):
  
• Total DeFi: TOTALDEFI.D
• Current Symbol: Will try to match corresponding dominance index for the chart symbol if available.
• Custom Input: Manual text input, will try to match if available.

-------------

The included presets determine the oscillator type used, all are fairly simple and easy to interpret:

• *EMA Centre
  *SMA Centre
  *Median Centre
  *Midrange Centre
  
  The first 4 are all variations on the same theme, simply calculated as the difference between the actual value and its respective average. EMA is the default and is my personal preference, if you generally favour using an SMA then perhaps that would be your better choice. Like the two MAs, median and midrange are also dependant on the length parameter. Midrange is calculated from the difference between highest and lowest values within the length period, with a little extra smoothing from an RMA(3).
  
  *Simple Delta
  *Weighted Delta
  *Running Delta
  
  Often referred to as momentum, delta is just change over time. 'Simple' is the most basic of these, the difference between the current value and the value (length) bars prior. A more long-winded way of calculating this would be to take the difference between each bar and its previous then average them with an SMA which results in the same value. 'Weighted' adopts that principle but instead uses a WMA, likewise 'Running' is the same but using an RMA. The latter is actually the basis of RSI calculations before any normalisation is applied, as you can see in the next preset.
  
  *RSI
  *CMO
  
  RSI really should not need explaining, it is however applied a little differently here to the usual, in this case centred around 0. The x100 multiplication factor has been dropped too for the sake of consistency. The same principle applies with CMO, which is basically a 'Simple Delta' version of RSI.
  
  *Hard Floor
  *Soft Floor

These last two are a little different but both can provide useful interpretations. The floor here is simply the lowest value within the chosen length period. 'Hard' plots the difference between the current value and the floor, thus giving a value that is always above 0. In this case, focus should be given to the relative heights of each with a simple interpretation that capital is flowing into those that are climbing and out of those descending. 'Soft' is essentially the same except that the floor is smoothed with an RMA(3), the result being that when new lows are made, the plot will break below 0 before the floor corrects a few bars later. This soft break provides additional information to that given by 'Hard' so is probably the more useful of the two.

------------

To finish it off, a bunch of preset alerts are included for the various 0 crossings.


So that just about covers everything then, all quite straightforward really. Future updates may include some extra stuff, the composition of the stablecoin index may change if necessary too. While this is not really a tweaker's tool like some of my other projects, there's still some room for experimentation here. The 'current' and 'custom' indexes can provide some useful data for compatible altcoins and the possibility to compare inter-related tokens (eg: Doge vs Shib). While i introduced this as a sort of sequel to Dominion, it is not intended as a replacement but more of a companion. This initially started as a feature intended for that one but it quickly grew into its own thing. Both the oscillator view here and the more traditional view have merits, i personally use this one primarily now but frequently refer to Dominion for confirmations etc.


That's it for now anyway. As always, feedback is welcome below. Enjoy!

21 Sep 2023

Nota Keluaran

Improved Data Window display, from here you can now view the actual dominance %-age values for all the included indexes (denoted with *).

5 Jun

Nota Keluaran

Version 2 : Major update

Here we take full advantage of TradingView's new selection of CRYPTOCAP indices.

The four primary dominance oscillators remain as before however the altcoin and stablecoin percentages have been recalculated making use of the new 'TOTALES' and 'TOTAL3ES' indices to give more accurate calculations.

• Stablecoins: 100*(TOTAL-TOTALES)/TOTAL
• Altcoins: 100*TOTAL3ES)/TOTAL

The suite of new sector categories has been incorporated here too, the previous section for 'EXTRAS' has been removed and replaced with 'SECTORS' in the interface. Within this are four additional oscillator plots, each of which has a dropdown menu selector containing the new ".C" categories. Additionally each has the option to use 'Current Symbol' as before along with four possible 'Custom Inputs' which can each be entered in manually as text within the interface. Categories are converted into dominance values before being processed by the main global oscillator function.

The code has been updated to PineScript v6 and been given a general overhaul utilising some newer functionality.

Alerts remain functionally the same as before albeit now applied to 'Sectors' along with the main four.

*** A note on using sectors. I have found that the default 'EMA centre' mode is less useful when applied to sectors. RSI and CMO work better due to the varying proportions however since most tend to move in a positively correlated fashion, I have found 'Soft Floor' and 'Hard Floor' to be more useful. The demonstration chart above has been updated to show this.