[blackcat] L1 ASR Floating Chip Ratio MACD█ OVERVIEW
The ASR Floating Chip Ratio MACD is a volume-based momentum indicator that combines chip distribution analysis with MACD-style signal generation. It measures the proportion of floating chips (tradable shares) within a specific price range to identify potential trend reversals and momentum shifts.
█ CONCEPTS
This indicator utilizes volume profile analysis to calculate chip distribution across price levels, then applies the ASR (Asymmetric Supply Ratio) methodology to quantify floating chip concentration.
Key Principles
• Chip Distribution — Analyzes volume distribution across price levels to understand where trading activity concentrates
• Floating Chip Ratio — Measures the proportion of chips that are "floating" (actively traded) relative to the total supply
• MACD-style Momentum — Applies fast/slow line crossover logic to detect momentum changes in the chip ratio
• Volume-Weighted Analysis — Uses historical volume data to weight the significance of different price levels
█ HOW TO USE
Setup Instructions
1 — Add the indicator to your chart from the indicators menu
2 — Adjust the lookback period based on your trading timeframe (default: 500 bars)
3 — Configure price levels for volume profile granularity (default: 100 levels)
4 — Observe the fast/slow line crossovers and histogram color changes
Parameter Guidance
• Chip Lookback Period (100-5000, default: 500) — Defines the historical range for chip distribution calculation. Higher values provide more stable signals but with more lag.
• Price Levels (10-200, default: 100) — Sets the granularity of the volume profile. More levels provide finer resolution but require more computation.
Signal Interpretation
• Fast line (yellow) crossing above slow line (white) suggests bullish momentum
• Fast line crossing below slow line suggests bearish momentum
• Histogram bars indicate the strength and direction of momentum
█ SIGNALS
Visual Elements
• Fast Line (Yellow) — Short-term EMA-based momentum of ASR ratio
• Slow Line (White) — Longer-term EMA-based momentum of ASR ratio
• Red Histogram Bars — Positive momentum strengthening (bullish)
• Light Red Bars — Positive momentum weakening (bullish exhaustion)
• Green Histogram Bars — Negative momentum strengthening (bearish)
• Light Green Bars — Negative momentum weakening (bearish exhaustion)
• Golden Cross (Red Triangle Up) — Fast line crosses above slow line (potential buy signal)
• Death Cross (Green Triangle Down) — Fast line crosses below slow line (potential sell signal)
• Zero Axis (Dashed Gray) — Reference line for momentum direction
█ FEATURES
• Volume profile-based chip distribution analysis
• MACD-style crossover signals with visual markers
• Four-color histogram for momentum strength visualization
• Configurable lookback period for different trading styles
• EMA-smoothed baseline for noise reduction
█ LIMITATIONS
• Requires sufficient historical data (minimum 100+ bars recommended)
• Performance may vary on low-volume or illiquid assets
• Not suitable as a standalone trading signal — use with confirmation
• The indicator repaints on new bars as volume profile updates
• Higher lookback periods increase computational load
█ NOTES
• Best used in conjunction with price action analysis and other indicators
• Consider market context and fundamental factors before making trading decisions
• The chip distribution model assumes volume reflects genuine trading interest
• Works well on daily and intraday timeframes with adequate liquidity
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