PROTECTED SOURCE SCRIPT
Realised P/L Momentum

Realised P/L Momentum Indicator
This indicator is designed to track the momentum of net realized profit/loss (P/L) and identify potential market trends based on the behavior of the holders.
The concept behind this indicator draws inspiration from Glassnode’s Net Realized Profit/Loss metric, which measures the net magnitude of profit or loss realized by all coins spent on-chain relative to the price at which they were last moved.
However, instead of focusing solely on the calculation of net profit or loss, this indicator introduces a momentum-based approach to evaluate the market's sentiment and potential trend reversals. The emphasis is placed on the uptrend and downtrend dynamics of the realized profit/loss, helping traders and analysts gain insights into the evolving market behavior.
Key Concepts:
Net Realized Profit/Loss: This metric is calculated by subtracting the total realized loss from the total realized profit, representing the net profit or loss (in USD value) for all coins spent over a given time frame. It helps gauge aggregate market sentiment, where:
Uptrend and Downtrend Conditions:
By focusing on the momentum of realized profit/loss, this indicator helps traders anticipate shifts in market behavior.
This indicator is designed to track the momentum of net realized profit/loss (P/L) and identify potential market trends based on the behavior of the holders.
The concept behind this indicator draws inspiration from Glassnode’s Net Realized Profit/Loss metric, which measures the net magnitude of profit or loss realized by all coins spent on-chain relative to the price at which they were last moved.
However, instead of focusing solely on the calculation of net profit or loss, this indicator introduces a momentum-based approach to evaluate the market's sentiment and potential trend reversals. The emphasis is placed on the uptrend and downtrend dynamics of the realized profit/loss, helping traders and analysts gain insights into the evolving market behavior.
Key Concepts:
Net Realized Profit/Loss: This metric is calculated by subtracting the total realized loss from the total realized profit, representing the net profit or loss (in USD value) for all coins spent over a given time frame. It helps gauge aggregate market sentiment, where:
- Positive values indicate profits being realized (typically seen during bull markets).
- Negative values indicate losses being realized (common during bear markets or capitulation events).
Uptrend and Downtrend Conditions:
- An uptrend is defined when the short-term (e.g., 100-day) moving average of realized P/L is higher than the long-term (e.g., 235-day) moving average, signaling stronger realized profits and potentially bullish market conditions for price appreciation.
- A downtrend occurs when the short-term moving average falls below the long-term moving average, indicating increased realized losses and a possible bearish market trend for price to decline.
By focusing on the momentum of realized profit/loss, this indicator helps traders anticipate shifts in market behavior.
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Protected script
This script is published as closed-source. However, you can use it freely and without any limitations – learn more here.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.