Indicator Overview

The Price ATH Drawdown indicator calculates the percentage decline from its all-time high (ATH), on a gradient from green (near 0% at cycle peaks) through yellow to deep red (extreme drawdowns beyond -80%). This provides a clear measure of market corrections relative to historical highs, highlighting the depth and duration of bear phases. The price is overlaid on a secondary logarithmic axis, allowing direct comparison between absolute levels and relative declines to contextualise cycle maturity and recovery potential.

Dual-Ticker Comparison Logic

The ‘Crypto’ fields allow the indicator to operate in both absolute price and relative performance modes, making it suitable for outright positioning or pair-based allocation decisions.

• Single Crypto Analysis: If Crypto 2 is left blank, the indicator measures Crypto 1 against US Dollars. This mode is designed to identify statistically stretched rallies, deep mean-reversion zones, and long-term accumulation conditions where price trades multiple standard deviations below its historical average.

• Relative Strength and Ratios: When both fields are populated, the indicator automatically constructs a ratio of Crypto 1 divided by Crypto 2, such as ETH/BTC or SUI/SOL. The metric is then calculated on the ratio itself, isolating relative performance and stripping out broad market beta. This enables precise identification of overperformance, underperformance, and regime shifts between assets.

How To Use

Deep red extremes below often signal capitulation and prime accumulation zones at cycle bottoms, while persistent green near 0% warns of overextension and potential reversals at tops. Traders monitor rapid recoveries from lows as bullish confirmations for entries, or prolonged shallow drawdowns as signs of weakening momentum. Use zero-line crossings to gauge regime shifts, upward breaks indicate building strength, downward ones suggest increasing downside risk, enhancing timing and risk management in multi-year cycles.