SZN - Altcoin Oscillator

SZN Altcoin Oscillator – Identify Market Phases with Precision

What is the SZN Altcoin Oscillator?

• The SZN Altcoin Oscillator is a multi-layered analysis indicator specifically developed for the altcoin market.
  
• It combines different signal groups (trend, relative strength, volume, market environment, and overheating filters) into a unified oscillator in the 0–100 range.
  

--> The goal is to make major market movements visible while separating short-term fluctuations from broader trends.

Why not just use RSI or MACD?

• Classic single indicators like RSI or MACD often react too sensitively to short-term fluctuations.
  
• This leads to many false signals – especially during volatile altcoin phases.
  

--> The SZN Altcoin Oscillator solves this problem by combining and filtering multiple signal sources.
--> This smooths out overreactions and identifies true trend movements more reliably.

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How does it work?

The oscillator consists of five signal groups:

Price & Trend Momentum

• checks the relative position of fast and slow moving averages
  
• detects whether an altcoin is in a confirmed uptrend or downtrend
  

Relative Strength vs. Bitcoin & Ethereum

• measures performance compared to the two market leaders
  
• shows whether capital is rotating into altcoins or staying in majors
  

Volume and Breakout Filter

• detects whether breakouts are confirmed by increased volume
  
• prevents short “fakeouts” from appearing as buy signals
  

Market Environment (Regime Filter)

• includes overall market data such as BTC dominance or TOTAL3
  
• ensures that buy signals only trigger in suitable market phases
  

Overheating & Oversold Filter

• marks statistically extreme zones
  
• upward cross from oversold → buy signal
  
• downward cross from overheated → sell signal
  

--> All results are displayed in a 0–100 oscillator.

• Buy signal: upward cross from oversold zones
  
• Sell signal: downward cross from overheated zones
  

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Variants (selection in the settings menu)

The indicator offers 5 preconfigured variants, optimized for different altcoin groups:

Default
The neutral standard configuration – balanced between sensitivity and stability. Suitable for a wide range of altcoins with medium to large market capitalization.

Large Caps
More conservative parameters with stronger smoothing. Designed for established projects (Top 20), where trends develop more slowly but with higher reliability.

Mid Caps
A balanced approach for mid-sized market caps. More sensitive than the Large-Cap variant, but filters more noise than the Small-Cap settings.

Small Caps
Higher sensitivity, optimized for more volatile coins (Top 100–200). Detects dynamic moves faster, but with higher risk of false signals.

Meme Coins
Adapted for highly speculative tokens. Accounts for extreme volatility and shorter cycles to better highlight overheating phases.

--> This allows each user to select the variant best suited to the asset category being analyzed.

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Recommended Usage

• Timeframe: Daily chart (highest precision). For very new projects, the 8h chart can be used.
  
• Asset selection: Coins with sufficient history (at least 200 trading days).
  

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Interpretation:

• Oscillator rising from oversold → potential bottom / upward trend reversal
  
• Oscillator falling from overheated → potential top / profit-taking zone
  
• Movements in between indicate interim rallies or correction phases
  
• The indicator is not a day-trading tool, but optimized for cyclical moves and swing trading.
  

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Notes:

• The SZN Altcoin Oscillator is an additional analysis tool and does not replace independent trading decisions.
  
• All signals are probabilistic; there is no guarantee of profits.
  
• Effectiveness depends on the specific altcoin and the current market phase.
  
• The indicator provides insights into broader market phases, not short-term price moves.