Short Term Holder SOPR

Short 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 30 and observe:

The indicator changes from a long-term <1 to a long-term >1, indicating that short-term holders have begun to make steady profits, and this change can be used as the basis for the market to enter an upward trend. Once the trend is formed, it will not stop suddenly. Even if it stops, it will continue to move forward until the potential energy is gradually reduced to exhaustion.

The reason for the above phenomenon is that the operation results of most short-term holders in the market are to buy high and sell low. When the group starts to make steady profits, it means that continuous incremental funds have begun to enter the market and continue to push prices up, making most short-term holders. Some are also profitable, which often means the market has shifted from a long-term down/sideways trend to an uptrend.