Buy & Sell Zones (Spread) — how it works

1) The key signal is the spread

Every day we measure:
Spread = Voliquidity − Crossover

2) We convert spread into a 0–100 oscillator

Over a rolling lookback window (e.g. ~180 points), the spread is normalized into a 0–100 score:
0 = most extreme “low” spread in the lookback
100 = most extreme “high” spread in the lookback
This tells you: “Is the Voliquidity/Crossover spread stretched vs its own recent history?”

3) Zones show “stretched” conditions

We treat the oscillator like RSI bands:

• Below 20 = BUY ZONE (oversold spread)
• Above 80 = SELL ZONE (overbought spread)

This doesn't mean “price must reverse now” — it means the relationship between Voliquidity and Crossover is extended, so risk/reward often changes.

4) Colour logic ties it to the BTC trend

BTC has trend flags (the BTC line colours):
Green BTC = Bull trend
Red BTC = Bear trend

The oscillator only “lights up” when the buy zone is active:

• BUY zone: Green historically a great time to buy BTC, Orange when the oscillator is in the buy zone while BTC is in a bear regime.

Outside of zones, the oscillator stays neutral so you can instantly see when conditions are truly “extreme”.