NVT Golden Cross
NVT Golden Cross (NVT_GC) is a Bollinger-band-like signaling indicator based on NVT, defined as the following equation
NVT Golden Cross targets to generate short or long signals by comparing the short-term trend of NVT and the long-term trend of NVT.
This leading indicator predicts the appearances of local tops and bottoms, which helps traders to take their short or long positions.
Predicting Local Tops and Bottoms
- Values over ‘2.2’ : Short SignalIf the short-term trend is way greater than the long-term trend is, the network can be interpreted as overpriced and will soon revert to mean value, meaning short signal.
- Values under ‘-1.6’ : Long SignalIf the long-term trend is way greater than the short-term trend is, the network can be interpreted as under-priced and will soon revert to mean value, meaning long signal.
It shows the comparative trend difference between long-term and short-term.
- Increasing trend : Marketcap(Price) is heating up compared to transaction volume
- Decreasing trend : Marketcap(Price) is cooling down compared to transaction volume