BSP / Buy Sell Pressure / Indicator of Buy Sell Pressure / SP / BP
| Buy Sell Pressure | BTC_BSP_1 | The ratio between Bitcoin's buy and sell pressure for a 1% change |
| Buy Sell Pressure | BTC_BSP_2 | The ratio between Bitcoin's buy and sell pressure for a 2% change |
| Buy Sell Pressure | BTC_BSP_3 | The ratio between Bitcoin's buy and sell pressure for a 3% change |
| Buy Sell Pressure | BTC_BSP_4 | The ratio between Bitcoin's buy and sell pressure for a 4% change |
| Buy Sell Pressure | BTC_BSP_5 | The ratio between Bitcoin's buy and sell pressure for a 5% change |
| Scale from 1 to 5 suggests the interval most effectively traded with a given metric | |
|---|---|
| 1,2 | Metrics most effective for trading small intervals |
| 3 | Metric most effective for trading medium intervals |
| 4,5 | Metrics most effective for trading large intervals |
INTERVALS
Tier 1: 1M, 1W, 3D, 1D
Tier 2: 1M, 1W, 3D, 1D, 12h, 4h, 2h, 1h, 15m, 10m, 5m, 1m
Tier 3: 1M, 1W, 3D, 1D, 12h, 4h, 2h, 1h, 15m, 10m, 5m, 1mReal-time Buy and Sell Pressure from Exchanges such as:
• Binance
* ByBit
• CoinBase
• Kraken
• Huobi
• Gate.io
• Bitfinex
• BitStamp
• Binance.us
• BitFlyerHow to interpret this?
Buy-Sell Pressure on exchanges: This metric shows values from -1 to 1, where 0 is a neutral value. Values above 0 indicate increased selling pressure, while values below 0 indicate increased buying pressure. At first glance, this metric resembles the RSI indicator in shape and behavior, but it is much more precise since it does not analyze the coin price but rather real-time buy and sell data.
Advantages:
Real-time market insight: The analysis of buy-sell pressure offers a unique insight into current market sentiment, allowing investors to make decisions based on real-time data regarding buy and sell orders, rather than solely on price history.
Helps identify potential market turning points, the best times to sell when the metric is extremely high, and to buy when the metric is extremely low.
Risks/Disadvantages:
Market manipulation impact: A large entity may try to manipulate market perception by placing large, but not necessarily executed, buy or sell orders. This can lead to a misinterpretation of buy-sell pressure.
Limited effectiveness in volatile market conditions: During extreme market conditions, such as news-related events or sudden shifts in sentiment, buy-sell pressure may not be a fully reliable indicator. In such circumstances, market behavior may be more driven by emotions than rational decisions based on order analysis.
Updated on: 15/09/2024
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