OPEN-SOURCE SCRIPT
Updated Speculation Ratio Territory
Speculation Ratio Territory
It is used to find the Index Top or Bottom which will define the buying and selling zone.
It should be checked on a weekly chart.
Example : As Nifty Trades around 248 days in a year.
So, 248/2 = 124
Now Use 124 DSMA on weekly chart.
Suppose Nifty 124 DSMA is @16000 and Current Market Price is 16500, then
SRT = 16500/16000 = 1.031
Top SRT of Nifty = 1.55
Bottom SRT of Nifty = 0.55
One should start investing when SRT value is between 0.55 to 0.75
And exit when SRT value is between 1.30 to 1.55
Credit for DSMA Script : //Deviation Scaled Moving Average by John Ehlers
It is used to find the Index Top or Bottom which will define the buying and selling zone.
It should be checked on a weekly chart.
Example : As Nifty Trades around 248 days in a year.
So, 248/2 = 124
Now Use 124 DSMA on weekly chart.
Suppose Nifty 124 DSMA is @16000 and Current Market Price is 16500, then
SRT = 16500/16000 = 1.031
Top SRT of Nifty = 1.55
Bottom SRT of Nifty = 0.55
One should start investing when SRT value is between 0.55 to 0.75
And exit when SRT value is between 1.30 to 1.55
- 0.55 to 0.75 --> ENTER (Green Zone)
- 0.75 to 1.30 --> HOLD (Blue Zone)
- 1.30 to 1.55 --> EXIT (Red Zone)
Credit for DSMA Script : //Deviation Scaled Moving Average by John Ehlers
Release Notes
Update : The concept of SRT is inspired by nkstocktalk , you can find the SRT details here as well : twitter.com"/"NKStockTalk1"/"status"/"1378537449010327553Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.