USD
Momentum Model
Realised Valuation
Oscillator

Decred Market-Realised Gradient Oscillator

Updated Jul 23, 2021
Chart Hint: The Market-Realised Gradient Oscillator is a metric that aims to capture periods where the momentum and sentiment of spot markets begins to shift in advance of a slower reaction on-chain. It considers the rate of change (gradient) of the market cap (fast, noisy metric) over a 28-day or 142-day period, and compares it to the equivalent gradient of the realised cap (slow but higher conviction metric). Standard periods used are 28-day and 142-day, coincident with average and maximum vote periods of the Decred ticket pool.

Chart Brief

The Market-Realised Gradient Oscillator is a metric that aims to capture periods where the momentum and sentiment of spot markets begins to shift in advance of a slower reaction on-chain. It considers the rate of change (gradient) of the market cap (fast, noisy metric) over a 28-day or 142-day period, and compares it to the equivalent gradient of the realised cap (slow but higher conviction metric). Standard periods used are 28-day and 142-day, coincident with average and maximum vote periods of the Decred ticket pool.

The Delta Gradient metric is calculated as the difference between the Market and Realised gradients. Where this metric breaks above zero from below, it signifies spot pricing is reversing trend to the upside faster than the on-chain realised response. Conversely, a break below zero signifies spot price trend reversal to the downside faster than the on-chain realised response.

This metric can also provide market momentum and divergence signals, similar to those commonly used in technical analysis. The height and sequential change in height of oscillator peaks provides insight into the volume of coins moving within, or counter to the prevailing trend.

Data Source: Coinmetrics.io and explorer.dcrdata.org.