On-Chain Metrics to Outperform the Crypto Market
Indicators :
- mvrv intraday ratio 30-day (blue)
- mvrv intraday ratio 7-day (yellow)
Knowing market trends :
![](https://production-sanbase-images.s3.amazonaws.com/uploads/a833c902f5775304c0d3aa77243160b7ec4874afe74d1881673db3701a3f6f6d_1673023718441_insight%20-%20pic%201%20.png)
In Uptrend :
- 0 line acts as support for mvrv 7 day - yellow
- mvrv 30 day will be above 0 - blue
![](https://production-sanbase-images.s3.amazonaws.com/uploads/5f5347d65e177e99406908f3616dc2e9092e8cdf6f88be49a1e46fc9b4f1ac76_1673023740202_insight%20pic%202.png)
In Downtrend :
- 0 line acts as resistance for mvrv 7 day - yellow
- mvrv 30 day will be below 0 - blue
![](https://production-sanbase-images.s3.amazonaws.com/uploads/536c5f851aaed50632e994fb1971b3885c3dd91abe1292eeb11712a8f0473dac_1673023756668_insight%20pic%203.png)
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 )
![](https://production-sanbase-images.s3.amazonaws.com/uploads/513114328b26607580cdda7954673b1517c50785f2883743927e630641d2d3e9_1673023775915_INSIGHT%20PIC%204.png)
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 )
![](https://production-sanbase-images.s3.amazonaws.com/uploads/23c3628f918b42e2ac7a581fa06d30d11f6733fb3ce2a7b13064d10a7897c92a_1673023794914_INSIGHT%20%20PIC%205.png)
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 :
![](https://production-sanbase-images.s3.amazonaws.com/uploads/d95e36aad2e907aa816f5d2c5586ef64546c8a5b84717c267bd7ed7c6fdffd5e_1673023814481_final%20pic.png)
Let's see how this trade goes.
Wishing you all a very HAPPY NEW YEAR 2023
UPDATE :
1) LTC trade signal in sanr :
![](https://production-sanbase-images.s3.amazonaws.com/uploads/fbad782838d29bdb31df2b7c8e908aff90170a4cf75b18e9450a269b3cd1230c_1673866803359_LTC.png)
2) SNX trade signal :
![](https://production-sanbase-images.s3.amazonaws.com/uploads/ececcf411d072f3325c72dfaae9eb0fc4f387492ee628e07ce4642141ecc2d81_1673866871726_snx%20trade%20.png)
used leverage 3x with 3% stop loss
![](https://production-sanbase-images.s3.amazonaws.com/uploads/1d21f0999ff578ce05d592197c0849fb660d9c8ea9ad4fde14d04b976e5fcb41_1673866926068_SNX.jpeg)
3) LRC trade signal :
![](https://production-sanbase-images.s3.amazonaws.com/uploads/192dbae7ffe1b7a8424ed9fef8234cd6a1d2f7b9a93c7b68a74b105ba323a845_1674666639158_LRC.png)
![](https://production-sanbase-images.s3.amazonaws.com/uploads/744ea9a4efdb60e01e0c4b4f3e00b5a3624678753ce742754e99f9f158ece3df_1674666719709_LRC%201.jpg)
Thanks for reading!
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