Long Term Holder SOPR

Long Term Holder SOPR is used to track the overall profit or loss ratio of rock sugar oranges with holding time > 155 days.

Set the SMA parameter to 0 and observe:

This indicator can be used as an auxiliary indicator for judging the top range of the market, even if other indicators have been used to judge that the market is close to the top range, and at the same time, the indicator keeps showing extreme values, indicating that the price has reached the most ideal point for long-term holders to distribute chips, which often corresponds to The top range of prices.

The reason for the above phenomenon is that long-term holders are a relatively intelligent group in the market, and this group is usually more rational in the judgment of the market.

Set the SMA parameter to 180 and observe that:

This indicator can also be used as an auxiliary indicator for judging the bottom range of the market. Even if other indicators have been used to judge that the market is close to the bottom range, and the indicator is less than 1, it means that long-term holders have sold at a loss on average in the past 180 days, which indicates that long-term holdings Those who are surrendering often correspond to the bottom range of prices.

The reason for the above phenomenon is that the surrender of long-term holders can better indicate that the market sentiment has reached an extremely depressed state, and the market has the basis for moving in the opposite direction.