What does it do?
TTP Capitulation uses %R and normalised ATR to find capitulations.
The criteria is to seek for the maximum volatility by setting a threshold to the ATR combined with a threshold for %R at oversold levels.
You can set a gap consisting of multiple candles for the two events to happen and still be considered a signal.
BUY signals are only triggered when price is above the 100 weekly MA.
You can also enable “bull market buy signals” which can be used as a way to also find smaller scale capitulation events during bull markets. These represent higher risk and expected to have a higher ratio of false positives.
The default parameters are tweaked to find all market capitulations for BTC in the daily timeframe .
Alerts and backtestable
This indicator is backtestable and supports alerts.
TTP Capitulation buy corresponds with the green dots.
Bull market buy are weaker signals that can happen during a big pull back during a bull run. Because these signals are weaker they can in some cases fire too early when a price dump is just starting.
How to setup
On TradingView you can copy the chart using the button below or you can start from scratch by loading the INDEX:BTCUSD to get all the historic prices from BTC in the daily timeframe.
I use the chart in logarithmic scale to be able to visualise better each of the events and confirm the parameters are optimised.
The accuracy of the BUY events is 100% up until now. Remember that no indicator is 100% accurate and I’m sure that there will be events that break the trend of the past capitulation events.
You need a Picnic or higher tier to access this indicator.