From well-known crypto investor Woobull, a post on a trading signal for Bitcoin, as first derived by Dmitry Kalichki.
What is NVT Signal?
Standard NVT Ratio is simply the Network Valuation divided by the Transaction Value flowing through the blockchain and then smoothed using a moving average. What Dimitry did was to apply the moving average just to the volatile Transactions component only without smoothing the already stable Network Valuation component.
This produces a much more responsive chart. Responsive enough to use as a trading indicator.
This is probably the first trading indicator to use blockchain data instead of the basic price and volume data coming in from exchanges.
The NVT Signal is picking we’ve bottomed.
This is available on Woobull Charts for now, though a new project named Fomonomics is mentioned.
via NVT Signal, a new trading indicator to pick tops and bottoms at Woobull