TTP Capitulation: new pine script

Green dots highlight capitulation events

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.

Accuracy

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.

Availability

You need a Picnic or higher tier to access this indicator.

Updated on May 19, 2022

Was this article helpful?

Leave a Comment