Indicator Overview

The Momentum Coalescence indicator evaluates SOL’s price momentum by combining: Fast Rate of Change (ROC), Slow Rate of Change (ROC), Volume delta, and Volatility Directional Bias (VDB).

It creates a normalised score to reflect the convergence of bullish or bearish forces in the market. This indicator is crucial for understanding shifts in market sentiment, as it captures both price and volume dynamics, helping investors identify potential trend reversals or continuations.

How To Use

Historically, positive coalescence scores above 0.5 often signal strong bullish momentum, coinciding with Bitcoin price rallies. Negative scores below -0.5 may indicate bearish pressure, often seen during corrections. You can use extreme readings to anticipate reversals: overbought conditions (high positive scores) suggest caution, while oversold levels (low negative scores) may present buying opportunities. The histogram or line, with a neutral line at zero, helps visualise momentum shifts.