The On-Chain Signal Map is a market trend detection system that leverages key elements from the Bitcoin Value Range System to deliver a high-resolution view of market momentum and direction. It compares individual on-chain components to both their Moving Averages (MA) and All-Time Means, generating actionable bullish or bearish signals based on their relative positioning.
By analyzing whether each component is trending above or below these key reference levels, the system identifies underlying strength or weakness within the market. This layered approach allows for more accurate and timely recognition of trend shifts, helping traders make informed decisions in rapidly changing environments.
The indicator provides intuitive, color-coded signals to guide decision-making:
- Green Signals: Indicate strong, positive momentum. These suggest a bullish trend and a potentially favorable environment for long positions or accumulation.
- Red Signals: Highlight potential price weakness or deceleration. These signals may indicate a bearish trend or an early warning of downward movement.
While optimized for Bitcoin, the system’s principles can be applied to other crypto assets for broader strategic use. Incorporating these signals into a larger framework can improve risk management.