SF - Dog
Widget displaying the current market sentiment
Last updated
Widget displaying the current market sentiment
Last updated
To add the Dog tool to your workspace, first click on the "Widget menu" button in the platform header. Then click on the button of the same name in the "Microstructure" section.
DOG is a guide indicator function based on the tick change in the futures index.
The user receives information in the form of 4 charts:
Let's take a closer look at each of them.
Tick Index 60 compares the number of coins that rise to the number of coins that fall on Binace Futures. A straight line is displayed on the panel. 0 is taken as the left point, and the current value of Tick Index 60 is taken as the right point. The scale from -200 to +200 is located on the left. The Tick Index 60 value is also duplicated in the upper right corner of the panel.
Tick Index 300 works similarly to Tick Index 60 except that the calculation period is taken as 300 seconds. The interface duplicates the Tick Index 60.
A synthetic tool that evaluates micro-sentiment in real time relative to its average values. Unlike Tick Index 60 and Tick Index 300, RT Index has a chart available that shows its dynamics over the last 20 values. On the left side there is a scale from -40 to +40. The RT Index value is also duplicated in the upper right corner of the panel.
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Appearance of RT Index
](https://sf-gitbook-images.s3.eu-central-1.amazonaws.com/assets/image+(174).png)
The Alt Meter panel is a horizontal scale that displays the probability of Pump or Dump movements in the altcoin sector. If the scale indicator is on the left side, there is a higher probability of Dump moves, if it is on the right side, there is a higher probability of Pump moves. The current Alt Meter value is located below the scale.
Tick Index is a popular indicator used by intraday traders to view the overall market sentiment at a given time. Observing the ratio of coins "up" to "down" allows traders to make quick trading decisions depending on market movements. Tick Index tracks the number of coins that are rising compared to the number of coins that are falling. Readings closer to +200 and -200 are considered extreme.Tick Index in DOG includes the entire range of futures instruments on the exchange Binance Futures (about 200 instruments as of summer 2023 and adjusted +/- depending on new listings and delistings).
Tick Index is calculated by the formula:\
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Tick Index calculation formula
](https://sf-gitbook-images.s3.eu-central-1.amazonaws.com/assets/image+(291).png)
where Growing is the number of growing coins, Falling is the number of falling coins; t is the comparison period in seconds. The SMA for the same period is used as a point of comparison.
The RT Index is a synthetic tool that evaluates the sentiment in real time relative to the average values of both the instrument itself and the overall conjecture as a whole.
Its main difference is that it doesn't work with absolute values (coin dropped/grew). RT Index:
finds the average fair price of an asset on a micro timeframe;
calculates how much percent the price of a coin has deviated from the average;
calculates the weighted sum of deviations for all coins, according to their dominance relative to the broad market.
The effectiveness of the RT Index can be seen in the following examples. The large chart on the left is the coin prices used for the calculation. The top chart on the right is the Tick Index. The bottom chart on the right is the RT Index.
The model reveals the general direction of market movement based on the dominance of bitcoin and its price in the market.
Through analytical data, a pattern of movement in 3 paradigms is revealed:
If BTC dominance increases and the price of BTC rises, an altcoin dump is likely.
If BTC dominance increases and the price of BTC falls, a strong altcoin dump is likely.
If BTC dominance decreases and the price of BTC increases, a large altcoin bump is likely.
Based on this data we have derived the trending direction of the market movement as a percentage scale most accurately reflecting the current daily sentiment, where:
0% corresponds to the maximum unfavorable time to buy altcoins;
100% corresponds to the maximum favorable time to buy altcoins.
Dog widget is a visualization of the current market sentiment in the moment and can serve as a kind of a guide for opening and closing short-term deals.
In a flat market, a trader can open a long position when the Tick Index value is close to -200 and exit when the indicator shows close to +200. A trader can use Smart High&Low tool and match these indicators with key support and resistance levels from the existing trading range before entering the market.
In a trending market, the Tick Index can be used to determine when to enter and exit. Traders can open a long position when the tick index falls below -1000 and exit when the indicator gives a value of +1000. Traders can match these readings to key support and resistance levels from the existing trading range before entering the market.
