The Kovach Crypto Spread indicator calculates the spread in profit between Bitcoin and the leading Altcoins. The Altcoins are weighted by market cap and this script is update weekly so you constantly have the most relevant Altcoins and their coefficients in the indicator.
Values above zero indicate a net flow from Altcoins to Bitcoin and vice versa. Let's consider how to use this data.
1. If Bitcoin is rallying, and the spread is well above zero, this indicates that Bitcoin is providing more profit than Altcoins. Consider taking some profits from BTC and investing in Altcoins.
2. If Bitcoin is retracing, but the spread is still above zero, it means that Altcoins are getting hit harder than Bitcoin, and you should keep your position in Bitcoin.
3. If Bitcoin is ranging, and the spread is below zero, it means that Altcoins are rallying and Bitcoin is stagnant.
For access to this indicator and more, please visit quantguy.net