Indicator Overview

The indicator compares the dollar value of profits realised by Short-Term Holders (STHs) (less than 155 days) to their realised losses.

A ratio > 1 (green) means STHs are locking in more profit than loss, indicating market strength.

A ratio < 1 (red) means STHs are locking in more loss than profit, indicating weakness or capitulation.

The chart uses a log-scaled oscillator.

How To Use

This ratio tracks the sentiment of new investors. High values (deep green) signal massive STH profit-taking, indicating euphoria and overbought conditions that typically precede price corrections. Low values (deep red) indicate significant loss-taking (capitulation) by STHs, often coinciding with major market bottoms when the final weak hands are shaken out. Oscillating around the 1 level suggests consolidation or accumulation.