Crypto Flow Index
Designed to help investors maximize portfolio efficiency and profitability, the Crypto Flow Index presents a visual overview of the flows of retail and institutional capital into the four main market sectors, along with several other sub-sectors.
With each sector assigned a "Flow Score," the index provides insights into the current stage of the market cycle, the typical over and underperformances of assets, and their correlation to the broader market. This allows you to identify the best sectors for trading and investing, either for positional hedging or differential plays.
Each secor is also assigned a “Correlation Score”, the index shows how correlated the specific sector is to the overall market. Because in cryptocurrency the majority of the market is directly correlated toward Large Caps their correlation score is often very high. Conversely, stable coins are inversely correlated to the market as traders will often exit cryptocurrency positions into stable coins in the same sense that equity traders exit positions into a currency.
The index covers a broad range of sectors, including Large caps, Alts, Shit, Stables, AI, Defi, Dex, Exchange, Gaming, Meme, Metaverse, Nft, Privacy, Smart, and Sports, making it a comprehensive tool for monitoring the cryptocurrency market.
Using the Crypto Flow Index is simple - just observe the evolving colored line within the indicator and the table overview to identify which sectors are outperforming or underperforming the general market. By monitoring the transitions of Flow between sectors, you can gain invaluable insights into the market cycle and make informed decisions about where to direct your focus and funds.
So, whether you're interested in the biggest market cap cryptocurrencies like BTC and ETH, or you want to explore smaller cap projects like LTC and XRP, the Trendmaster Crypto Flow Index is the perfect tool for maximizing your cryptocurrency investments.
Crypto Flow Index
The Crypto Flow Index is designed to help investors maximize portfolio efficiency and profitability. It provides a visual overview of the flows of retail and institutional capital into four main market sectors and several sub-sectors, with each sector assigned a "Flow Score" and a "Correlation Score." This tool is ideal for monitoring transitions of Flow between sectors and making informed decisions about where to direct your focus and funds.
- Name
Display- Type
- mode
- Description
- Sectors: These are the 4 main sectors of the crypto market, denoted as Large Caps, Alt Coins, Shit Coins, and Stable Coins.
- Sub-Sectors: These are specific sub-sectors of the crypto market, denoted as AI, DeFi, DEX, Exchange, Gaming, Meme, Metaverse, NFT, Privacy, Smart, and Sports. An effective use of this is to always start with Sectors turned on to see which sectors are moving and then select sub-sectors to target specific tokens for taking positions.
- Name
Higher Timeframe Data- Type
- boolean
- Description
A tickable function that allows the user to show the crypto flow index on a higher timeframe than is currently used to see changes in the market on a more macro level than what is currently shown.
- Name
Table Position- Type
- position
- Description
The Table position can be adjusted from its middle position of middle right to plot the crypto flow index table wherever you would like to have it displayed or to turn it off entirely.
- Name
Label Size- Type
- size
- Description
This allows you to change the labels on the lines denoting which sectors or sub-sectors are being shown to increase or decrease their size from the default size of normal or to turn them off entirely.
- Name
Bullish, Bearish, and Neutral Color- Type
- color
- Description
These colors are default for Bullish (Green) Bearish (Red), and Neutral (Gray) as they are displayed in the crypto flow index table. The more Bullish or Bearish a value is in the table denotes its strength or weakness in overall flow score and correlation.
- Name
Sectors- Type
- mode
- Description
These are the general sectors of the overall cryptocurrency market as they are broken down by the type of coin in their respective sectors. The default colors can be changed
- Large Caps: This sector comprises cryptocurrencies with the largest market capitalization, such as Bitcoin and Ethereum. These coins have a significant influence on the crypto market, and their price movements often affect the rest of the market.
- Alt Coins: These are cryptocurrencies that are not Bitcoin or Ethereum, but still have a high market capitalization and trading volume. Examples include Litecoin and XRP.
- Stable Coins: These are cryptocurrencies that are designed to maintain a stable value, often pegged to a fiat currency like the US dollar. They provide a stable store of value and are commonly used in trading and as a means of payment.
- Name
Sub-Sectors- Type
- mode
- Description
These are sub-sectore of the cryptocurrency market and more niche in finding specific tokens to target for positions. The default colors can be changed.
- AI: This sub-sector comprises cryptocurrencies that are based on artificial intelligence technology.
- DeFi: Short for "decentralized finance," this sector uses smart contracts and blockchain technology to provide financial services.
- DEX: These are decentralized exchanges that allow users to trade cryptocurrencies without a central authority.
- Exchange: This sector comprises centralized exchanges that allow users to trade cryptocurrencies with fiat currencies or other cryptocurrencies.
- Gaming: This sector comprises web3/crypto gaming platforms that use blockchain technology to provide new gaming experiences and ownership of in-game assets.
- Meme: These are cryptocurrencies that gain popularity due to social media hype and viral memes, rather than any real utility or technology.
- Metaverse: This sector comprises projects that aim to create virtual worlds and assets that users can own and trade.
- NFT: Short for "non-fungible token," this sector comprises digital assets that are unique and cannot be replicated.
- Privacy: These are cryptocurrencies that prioritize privacy and anonymity, often using advanced cryptographic techniques to keep transactions and identities private.
- Smart: These are cryptocurrencies that offer smart contract functionality, allowing developers to build decentralized applications on top of their blockchain.
- Sports: These tokens are often used to provide voting rights or exclusive content to fans.
Examples of Crypto Flow Index Use
Stable Coins vs Other Sectors By using the Crypto Flow Index on the Sector category on the 1hr and 4hr you are able to see reversals where the changes from high to low scores especially between large Caps and Stable Coins.
When stable coins have extremely high Flow score it means that traders have or are exiting positions into stable coins and exiting other not pegged crypto currencies. When Stable Coins have an extremely low Flow score it means that traders are allocating or heavily allocated into other crypto assets.
The way to use this is to see when there is a break in the trend for stable coin and the reaction of Large Caps, Alt Coins, and Shit Coins.
When for example Stable Coins have an High Flow Score that begins to reverse and Large Caps have a very low Flow score and begins to reverse, it can indicate a larger change in the market as per your current timeframe. Essentially, when looking to long or buy cryptocurrency you want to see a change in flow score for stable coins where they are losing flow score at the same time as you see Large Caps, Alt Coins, or Shit Coins are starting to gain flow score. The opposite is true if you are looking for shorts
More often than not you will see Large Caps moving first followed by Alt Coins, and Shit Coins with the general idea that traders want to capitalize on both Large Caps as well as Alt Coins and Shit Coins. When Flow tapers off for Large Caps but continue for Alt Coins and Shit Coins there is continued opportunity for longs or shorts based on the direction of movement.