On-Chain Metrics to Outperform the Crypto Market

Indicators :

• mvrv intraday ratio 30-day (blue)
• mvrv intraday ratio 7-day (yellow)

Knowing market trends :

In Uptrend :

• 0 line acts as support for mvrv 7 day - yellow
• mvrv 30 day will be above 0 - blue

In Downtrend :

• 0 line acts as resistance for mvrv 7 day - yellow
• mvrv 30 day will be below 0 - blue

Long setup :

Entry

• time frame = 4hrs
• 1 - mvrv intraday ratio 30d > 0 after 4h candle close
• 2 - mvrv intraday ratio 7 day > 0 after 4h candle close
• 3 - enter long

Exit

• stop loss based on the individual's risk appetite ( I use a stop - loss of 3 % from entry price )
• when mvrv intraday ratio 7 day goes below 0 after 4h candle close ( re-enter again when mvrv intraday ratio 7 day comes back again above 0 while 30 day ratio above 0 )
• exit at target profit percentage (or) price ( next resistance )

Short setup :

Entry

• time frame = 4hrs
• 1 - mvrv intraday ratio 30d < 0 after 4h candle close
• 2 - mvrv intraday ratio 7 day < 0 after 4h candle close
• 3 - enter short

Exit

• stop loss based on the individual's risk appetite ( I use a stop - loss of 3 % from entry price )
• when mvrv intraday ratio 7 day goes above 0 after 4h candle close ( re-enter again when mvrv intraday ratio 7 day comes down again below 0 while 30 day ratio below 0 )
• exit at target profit percentage (or) price ( next support )

Personal feedbacks and opinions :

1) Probability of Success and Risk Management

• This trade setup has high rate of success when I analyzed past price actions in $ETH and other crypto projects which are traded actively with high trading volumes and has good crowd / network participants.
• Sometimes the trade won't play out hence it is compulsory to have stop losses placed especially if leverage is used according to one's risk appetite.
• However the losses taken out in false signals will be covered by profitable trades since this setup yields decent returns and sometimes high returns in the range of 15-25 %.
• So if leverage is used properly with tight stop loss ( imo 3x max leverage and 3 % loss from entry price risking only 9 % of the capital used to trade ) one can multiply the initial capital with patience in the longer run. ( start with a 100$ trading account )
• So more discipline, patience, fearless behavior is required to succeed in the longer run.
• Finally but very importantly never fear to jump / enter into the trade when the setup is arrived ( wait for 4h close for the metrics to update )

2) Using Technical Analysis along with On-chain Trade Setup Metrics

• Higher probability of Success can be obtained by keeping the odds in one's favor by adding Technical Analysis tools such as SMAs.
• Longing when the LONG trade setup is arrived becomes more favorable when the price is above 200 MA and got pulled back into 50 MA.
• Likewise Shorting when the SHORT trade setup is arrived becomes more favorable when the price is below 200 MA and got pulled back into 50 MA.
• This is one such example, you can use what works well for you.

Live Trade Setup :

Let's see how this trade goes.

sanr signal link

Wishing you all a very HAPPY NEW YEAR 2023

UPDATE :

1) LTC trade signal in sanr :

2) SNX trade signal :

used leverage 3x with 3% stop loss

3) LRC trade signal :