* NVT (Network Value to Transactions Ratio)
* NVTS ( NVT Signal)
Both indicators are based on Bitcoin Network Value (Market Cap) and 24h transaction .
For both these values I'm using Quandl datasets from Blockchainc.com:
Calculation for both indicators are pretty simple:
NVT = median(market_cap / transac_vol, 14 bars)
NVTS = market_cap / (transac_vol, 90 bars)
NVT and NVTS are cryptocurrency's answers to . They can help you to understand if bitcoin is under/overvalued.
When NVT or NVTS is relatively high it can be a pretty good point to short bitcoin , if it's low it good time to buy bitcoin .
NVT Ratio - was created by Willy Woo
NVT Signal - was created by Dimitry Kalichkin
Because of different sources of transaction data, these indicators can differ in values from originals, but magnitude should be the same.
This is a pretty simple example where you can select only static overbought/oversold levels and when indicator will be above/below it you will see in changing in color.
I have many more things in my head how these indicators can be developed further and what strategies can be derived from them, but as is they can be a pretty good base for you. Will share my advanced findings later.