Difficulty Ribbon - A New Blockchain Based Bitcoin IndicatorIntro
Introducing the Bitcoin Difficulty Ribbon. When the ribbon compresses, or flips negative, these are the best times to buy Bitcoin. The ribbon consists of simple moving averages on mining difficulty so we can easily see the rate of change in difficulty.
Attribution
This Indicator was created by Willy Woo of Woonomics based upon the ideas of Vinny Lingham.
An in depth article can be found here regarding the difficulty ribbon: woobull.com
Extras
We added some Moving Average options to choose from if you want to experiment.
We also added background coloration signals. Yellow is the beginning of compression, and green is the fully compressed or inverted signal.
Use these signals as an added confirmation signal alongside other blockchain based FA or long term TA indicators.
Instructions to add to the chart correctly
1.Add Indicator, and it will appear below price chart.
2.Click on the ribbon line and drag it up onto the price chart. (gives you separate scales)
3.Set both price and difficulty ribbon scale to logarithmic (right click on scale)
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