($ROSE Trader) Mean Multiple

2024年7月7日

The ROSE Trader Mean Multiple is an adaptation of The Mayer Multiple, using the 99-Day Simple Moving Average rather than the 200-Day (adjusted for ROSE's higher delta), setting distinct preset levels for ROSE overbought and oversold conditions.

Who is this indicator for?
While this indicator will function on any chart, it is setup for trading Oasis ROSEUSDT token specifically — the presets used are tailored to the ROSE chart.
While it is an open source public script, it has been released primarily for the ROSE community

What does this indicator offer?
This indicator follows the same concepts as the Mayer Multiple, popular with BTC. What makes it unique is that it the presets are setup specifically for the ROSEUSDT, based upon my trading experience.

About the Mayer Multiple:
The Mayer Multiple is a derivative of the 200-day MA, calculated by dividing the BTC market price by the 200-day MA. The 200-day MA is a widely recognised indicator for BTC in establishing macro bull or bear bias. The Mayer Multiple therefore represents a measure of distance away from this long-term average or mean price as a tool to gauge overbought and oversold conditions.

For BTC overbought, and oversold conditions, have historically coincided with Mayer Multiple values of 2.4, and 0.8 respectively.

Adapting this concept to the ROSE token:
The adaption of the Mayer Multiple offered here adjusts the 200-day MA to suit the higher delta or volatility of the ROSEUSDT token specifically. For ROSE I use the 99-day MA to establish macro bull or bear bias. The derived 'Mean Multiple', based on the 99-day MA therefore represents a measure of distance away from this long-term average or mean price as a tool to gauge overbought and oversold conditions.

For ROSE overbought, and oversold conditions, tend to coincide with values of 1.618, and 0.618 respectively. Further offsets have been preprogrammed to add nuance to the way this indicator may be used in different market conditions


Calculations:

• Mean Multiple is calculated by dividing the market price by the 99-Day Simple Moving Average (99D SMA). The indicator allows you to adjust the period if desired.
  
• The indicator horizontals are set at regular offsets from Mean multiple (MM), these are calculated by multiplying the SMA from which the MM is derived by a set number to arrive at each offset, based upon historic price data.
  
• The indicator horizontals may work as oversold and over bought levels, as they show the distance the price has moved from the mean, and how the Mean Multiple (as a derivation of price) has behaved at these levels historically
  
• This script is partnered with the "ROSE Trade Mean Multiple Oscillator" which shows this data plotted on the price chart (This Oscillator is pictured in the chart but must be added separately, it can be found in my other public scripts)
  
  

Note: this script is setup to work with any instrument, but the presets are built to provide actionable data on the Oasis ROSEUSDT token specifically. It is not a predicative model, it rather shows how price has behaved historically / statistically at these levels given past data.

2024年7月7日

版本注释

Added: New recommended presets for ROSEBTC, MA type option and additional period presets