OPEN-SOURCE SCRIPT
Inverted VIX [Locked Daily] - for BTC
This indicator takes the fear index (CBOE:VIX) and adapts its formula into an easy-to-read format similar to the RSI or Stochastic oscillators (0-100 scale). It is designed to assess the macro market regime and help you find optimal entry points for Bitcoin (BTC) or other cryptocurrencies on lower timeframes like 4H or 1H.
💡 Key Features:
Locked Daily Timeframe: The VIX calculation is strictly locked to the Daily (1D) context, regardless of the timeframe you are currently viewing on your chart. This allows you to gauge macro-level fear without being distracted by lower timeframe noise.
Inverted Scale: * Values near 0 (Oversold) = The market is in extreme Panic (ideal zone to look for buying opportunities).
Values near 100 (Overbought) = The market is overly confident or complacent (caution zone).
Weekend Gap Management: It smooths out the visual experience on 24/7 crypto charts by handling the data gaps that occur when the US stock market (VIX) is closed over the weekends.
🎯 Usage Recommendation:
It is highly recommended to set the Lookback Days to 60 days (roughly equivalent to 1 trading quarter) to filter out false signals and market noise. When the indicator drops into the Oversold zone (green area), treat it as a "green light" to zoom into your 4H chart and look for favorable Price Action or bullish reversal structures to execute your trade.
🤖 Developer's Note:
This script was co-authored with AI to help structure the cross-timeframe (MTFA) data fetching logic for maximum stability.
If any fellow traders or developers look under the hood and spot any logical flaws, errors, or areas where the code efficiency could be improved, please feel free to leave a comment or reach out! I am very open to feedback and would love to continually update this script to make it better for everyone. 🙏
💡 Key Features:
Locked Daily Timeframe: The VIX calculation is strictly locked to the Daily (1D) context, regardless of the timeframe you are currently viewing on your chart. This allows you to gauge macro-level fear without being distracted by lower timeframe noise.
Inverted Scale: * Values near 0 (Oversold) = The market is in extreme Panic (ideal zone to look for buying opportunities).
Values near 100 (Overbought) = The market is overly confident or complacent (caution zone).
Weekend Gap Management: It smooths out the visual experience on 24/7 crypto charts by handling the data gaps that occur when the US stock market (VIX) is closed over the weekends.
🎯 Usage Recommendation:
It is highly recommended to set the Lookback Days to 60 days (roughly equivalent to 1 trading quarter) to filter out false signals and market noise. When the indicator drops into the Oversold zone (green area), treat it as a "green light" to zoom into your 4H chart and look for favorable Price Action or bullish reversal structures to execute your trade.
🤖 Developer's Note:
This script was co-authored with AI to help structure the cross-timeframe (MTFA) data fetching logic for maximum stability.
If any fellow traders or developers look under the hood and spot any logical flaws, errors, or areas where the code efficiency could be improved, please feel free to leave a comment or reach out! I am very open to feedback and would love to continually update this script to make it better for everyone. 🙏
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.
Script de código aberto
Em verdadeiro espírito do TradingView, o criador deste script o tornou de código aberto, para que os traders possam revisar e verificar sua funcionalidade. Parabéns ao autor! Embora você possa usá-lo gratuitamente, lembre-se de que a republicação do código está sujeita às nossas Regras da Casa.
Aviso legal
As informações e publicações não se destinam a ser, e não constituem, conselhos ou recomendações financeiras, de investimento, comerciais ou de outro tipo fornecidos ou endossados pela TradingView. Leia mais nos Termos de Uso.