#
Decred Market-Realised Gradient Oscillator

Updated Feb 25, 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.