SF - Market ration
The tool tracks the deviation of asset prices from the general market conjecture
Last updated
The tool tracks the deviation of asset prices from the general market conjecture
Last updated
To add the Market Ration tool to your workspace, first click on the "Widget menu" button in the platform's header. Then click on the button of the same name in the "Correlation" section.
The widget is a structured table showing deviations of asset prices from the general market conjecture. Positive values are sorted in descending order (left part of the table), negative values (right part of the table) - in ascending order.
The ability to sort by time is present: track deviations by day or week.
The table displays:
SYMBOL - name of the ticker, for which the signal has come.
P (Price) - the current price of the asset.
DAY CHN % (Day change) - the percentage change in the asset price over the last day.
INDICATOR - value of the Market ration tool for the futures contract for the traded asset at the moment of signal arrival. The data is displayed as two horizontal bar graphs. The upper histogram shows the average percentage change between the asset price and the moving average of the percentage change in all futures contracts over the last 24 hours. The bottom one is for the last 168 hours. Positive deviations are colored green and negative deviations are colored red.
Like all tools SpreadFighter, Market Ratio has the ability to synchronize with other tools marked with the same color. When you click on a specific signal, all synchronized tabs will switch to the corresponding ticker.
The model calculates the percentage deviation between the instrument and the moving average of the percentage change in all futures contracts over a time period of 24 (upper value) and 168 (lower value) hours. All futures contracts are used except: DEFI index, BTCDOM, BUSD instruments.
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Market Ration model calculation formula
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Let's look at value constructions in more detail. The chart shows the moving deviations of the price on different instruments for a period of 24 hours.
Chart of deviations of individual assets and market average deviation
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The value of avg. represents the average value of all presented instruments and is the zero reference point for the Market ratio indicator.
Instruments that are above average are colored green and those below average are colored red.
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Market ration value for individual assets
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The 168 hour indicator value is calculated and plotted in the same way.
The widget can be used for:
Overbought/oversold determinations of an asset through the lens of overall conjecture, which may indicate a possible price change.
Selecting assets to create synthetic positions.
Searching for trading situations with increased activity of participants.
Comprehensive market structure analysis.
Thus Market ration visualizes the position of each asset in the context of the market environment. But perceive tool is not a self-sufficient model for trading. The widget is fully disclosed only in conjunction with other Market ratios and the trader's trading strategy.
