Indicator Overview
The Sharpe Ratio indicator combines Bitcoin price data with statistical analysis.
It leverages the Sharpe Ratio, an established measure of risk-adjusted returns, to evaluate the current valuation compared to its historical perfomance.
The indicator uses a simple moving average of the sharpe ratio to create an oscillating signal and to make the indicator more smooth.
How To Use This Indicator
When the Sharpe Ratio value crosses under the bottom range, it signals an oversold market and a good accumulation zone.
Crossing above the top range, this indicator signals an overbought market and a potential zone for taking profits.
Created By
Alpha Extract in May 2024