Indicator Overview

The MSTR 30/60 Ratio Vector is a high-resolution momentum indicator specifically tailored to Strategy’s unique price behaviour. It measures the divergence between a 30-day and 60-day EMA, expressed as a ratio relative to 1.0, and presents it as a continuously coloured gradient line with an accompanying histogram. This captures the explosive short-term momentum surges driven by Bitcoin treasury announcements, debt raises, and premium expansion, while remaining sensitive to rapid mean-reversion and premium compression typical of MSTR’s equity profile.

How To Use

Values significantly above the overbought threshold (upper green dotted line) signal extreme bullish momentum and premium inflation, often coinciding with peak euphoria, aggressive accumulation phases, or post-announcement spikes, ideal zones for profit-taking, position reduction, or hedging. Values below the oversold threshold (lower red dotted line) indicate momentum exhaustion and premium collapse, frequently occurring during risk-off deleveraging, rising yields, or dilution fear, creating high-conviction entry windows for those seeking discounted exposure to MicroStrategy’s Bitcoin strategy. The gradient line transitions from deep red (bearish exhaustion) through neutral grey to vivid green (bullish euphoria), with the histogram and background shading providing instant visual confirmation of regime strength. Traders use upward threshold crossovers with confirmation for short-term long entries or fading overbought extremes, while downward breaks warn of potential sharp reversals. Long-term holders accumulate during sustained oversold periods and trim exposure during prolonged overbought conditions, aligning perfectly with MSTR’s high-beta, announcement-driven cyclical nature.