Alts Macro Bottom/Top Signals

The Alts Macro Bottom/Top Signals indicator provides a comprehensive framework for identifying long-term accumulation zones and potential cycle peaks specifically designed for the altcoin market on the daily timeframe. It utilizes various exponential moving averages and MACD configurations to detect momentum shifts and significant price deviations from the mean to signal macro opportunities.

Usage

The indicator is designed for the 1D (Daily) timeframe and requires significant historical data (ideally over 2 years) to function correctly.

• Accumulation (Light Green Area): This zone appears when the price is significantly extended below the 200-day EMA or when long-term trend momentum is sharply declining. Users can use this to start scaling into long-term positions.
• Strong Buy (Dark Green Area): These signals occur during intense downtrends within an existing accumulation zone. These are often considered high-conviction points to increase position sizing.
• Local Top Warning (Light Red/Transparent Area): Signals a loss of momentum during a strong uptrend. If this appears without the final top indicator, it may represent a temporary pullback.
• Potential End of Bull Run (Dark Red Area): This represents a severe momentum divergence at the macro level. When this appears, it suggests a significant probability that the cycle peak is in or very near.

Details

The script relies on several key technical concepts:

• Trend Identification: Uses the relationship between the 200-day and 300-day EMAs to establish the macro trend.
• Deviation: Accumulation signals are triggered when the price falls 40% below the 200-day EMA.
• Momentum Slopes: The script calculates the week-over-week (w/w) or day-over-day (d/d) percentage change of various EMAs (36d, 200d, 100-week/700d) to detect exhaustion.
• MACD Divergence: Uses non-standard MACD settings (e.g., 9/36/9 for local tops and 108/234/9 for macro tops) to filter price action and identify large-scale momentum loss.

Settings

• Source: Determines the price data used for all EMA and MACD calculations (default is Close).

FAQ

How do I use the Alts Macro Bottom/Top Signals indicator?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Why are there no signals appearing on my chart?

The indicator requires approximately 2 years of historical data to calculate the long-term EMAs and MACD signals. Additionally, extremely volatile "meme" coins or low-liquidity assets that do not follow broader market trends may not trigger the internal thresholds.

Can this be used for Bitcoin?

While it may provide some insights, this script is specifically tuned for the volatility and trend profiles of altcoins. It is recommended to use this alongside a dedicated Bitcoin macro indicator to confirm if the overall market cycle is nearing completion.