Miners' Position Index (MPI)
Miners' Position Index (MPI) is defined as the ratio of the number of all miners' outflows in USD divided by 365 days moving average of it.

# Definition

Miners' Position Index (MPI) is defined as the ratio of the number of all miners' outflows in USD divided by 365 days moving average of it. This indicator is inspired by Puell Multiple.
$\text{MPI} = \text{365 days moving z-score (Capitulation Index)}$

# Interpretation

## By value itself

• High : Miners are sending their coins more than usual- Bearish
• Low : Miners are sending their coins less than usual - Bullish

## By examining trend

• Increasing : Miners are being more involved in selling and increasing their sell - Bearish
• Decreasing : Miners are being less involved in selling and decreasing their sell - Bullish
Unlike Miner outflows, Miners' Position Index (MPI) takes the average behavior of miners into account by using 365 days moving average. Also, MPI explains the relative miner's liquidation behavior compared to the historical average, assuming that most of the outflows from miners are heading to exchanges for selling. Also assuming that miners are good at selling their positions at the right time as professional traders, MPI is a good indicator for timing exit points (selling) by duplicating their behaviors. This also helps to view miners' profitability along with Puell Multiple.

# Use Case

## Spotting Exit Points for Selling

Given the interpretation that MPI helps us to spot selling points, we can benefit from the events where the large MPI values occur. In this use case, we utilize one of the well-known technical indicators called Bollinger-band to detect abnormal MPI values. The below chart illustrates detected spots to exit from the market, selling.