|
Title: How to easily calculate supply/demand of a coin (andvanced analysis) Post by: gustav on September 22, 2014, 11:41:13 AM Had an idea few days back. How to calculate supply/demand of a coin in minutes.
Take timeinterval x (1 day / 7 days / 30 days / ...) Take how many coins have been traded during that time and divide by the number of coins that have been minted in the same time. The number you get is how many times the network output of new coins was turned over in timeframe x A rough indicator for supply/demand especially useful on larger timescales. Very good for fundamental analysis of coins and also very good for direct comparison of different coins. Inflation vs demand indicator. Enjoy your new tool. --------- I came up with the idea first when i was analysing Unobtanium supply/demand, a brilliant coin in that regard btw since it doesn't take much volume for it to let this indicator go to insane hights. Just a heads up. Have fun trading. Title: Re: How to easily calculate supply/demand of a coin (andvanced analysis) Post by: FallingKnife on November 15, 2014, 05:33:59 AM This makes a ton of sense.
Uno shines in an analysis like this. Title: Re: How to easily calculate supply/demand of a coin (andvanced analysis) Post by: rugrats on November 15, 2014, 05:40:33 AM Had an idea few days back. How to calculate supply/demand of a coin in minutes. Take timeinterval x (1 day / 7 days / 30 days / ...) Take how many coins have been traded during that time and divide by the number of coins that have been minted in the same time. The number you get is how many times the network output of new coins was turned over in timeframe x A rough indicator for supply/demand especially useful on larger timescales. Very good for fundamental analysis of coins and also very good for direct comparison of different coins. Inflation vs demand indicator. Enjoy your new tool. --------- I came up with the idea first when i was analysing Unobtanium supply/demand, a brilliant coin in that regard btw since it doesn't take much volume for it to let this indicator go to insane hights. Just a heads up. Have fun trading. How do you reconcile this with artificial/incremental bot trading, pumps and non-exchange demand? Title: Re: How to easily calculate supply/demand of a coin (andvanced analysis) Post by: coinsolidation on November 15, 2014, 07:00:46 AM Take how many coins have been traded during that time and divide by the number of coins that have been minted in the same time. Trading does not equal demand. Trading volume indicates nothing more than traders trading, BTC on a dive for example will have vast trading volume, yet smaller trading volume on a rise, then random slow days and random high purchases. It's a rough guide to traders speculative sentiment, or post reactionary to bad/good news and little more. You measure demand roughly, by usage. What percentage of the currency is floating, in the virtual pocket of users who need or want to use it for some purpose. The higher that percentage, or the faster it's increasing, the more real demand there is. Title: Re: How to easily calculate supply/demand of a coin (andvanced analysis) Post by: ed_teech on November 15, 2014, 10:27:50 AM Take how many coins have been traded during that time and divide by the number of coins that have been minted in the same time. Trading does not equal demand. Trading volume indicates nothing more than traders trading, BTC on a dive for example will have vast trading volume, yet smaller trading volume on a rise, then random slow days and random high purchases. It's a rough guide to traders speculative sentiment, or post reactionary to bad/good news and little more. You measure demand roughly, by usage. What percentage of the currency is floating, in the virtual pocket of users who need or want to use it for some purpose. The higher that percentage, or the faster it's increasing, the more real demand there is. I may add that supply is not just coins mined. Traders willing to sell are also on the supply side. Title: Re: How to easily calculate supply/demand of a coin (andvanced analysis) Post by: belmonty on November 15, 2014, 11:00:34 AM Had an idea few days back. How to calculate supply/demand of a coin in minutes. Take timeinterval x (1 day / 7 days / 30 days / ...) Take how many coins have been traded during that time and divide by the number of coins that have been minted in the same time. The number you get is how many times the network output of new coins was turned over in timeframe x A rough indicator for supply/demand especially useful on larger timescales. Very good for fundamental analysis of coins and also very good for direct comparison of different coins. Inflation vs demand indicator. Enjoy your new tool. --------- I came up with the idea first when i was analysing Unobtanium supply/demand, a brilliant coin in that regard btw since it doesn't take much volume for it to let this indicator go to insane hights. Just a heads up. Have fun trading. How do you reconcile this with artificial/incremental bot trading, pumps and non-exchange demand? Plus I suspect some devs use circular trading (buying and selling to themselves) to give the appearance their coin has huge volumes of trades, when in reality nobody is interested in it. |