[ANN][DASH] Dash (dash.org) | First Self-Funding Self-Governing Crypto Currency

Quote from: Freckleg on March 22, 2015, 10:27:56 PM

That is actually since today. Lite coin is losing its 'special alt status'

It's an interesting exercise to compare the Litecoin "On Balance Volume" with the darkcoin on balance volume and the darkcoin price for the same period.

Aside
Think of comparing a river and a stream and only measuring the speed of the flow. The two might be the same. But if you multiply the speed by the cross-sectional area of the flow channel, you'll get a measure called the 'volume flowrate' which takes into account how much water is being moved as well - not just the velocity. (in units of cubic metres per second instead of just metres per second). Well, just looking at price is like just looking at the speed - not the volume flowrate.

The on balance volume isn't quite like that because it's a bit cruder of a measurement - it simply pluses or minuses the volume to a running total at the end of the time slice - but it does give a volume oriented trend for long term analysis which is quite informative when compared with just price.

More info: http://www.investopedia.com/articles/technical/100801.asp

Observations
The first interesting thing to notice is that this indicator gives a more consistent signal than the price. For example, we can see that Litecoin's huge pump back in November 2013 (just prior to the China-driven bitcoin rally to $1000) isn't nearly as pronounced in volumetric terms as it is in price. The Litecoin OBV has in fact been in consistent decline going all the way back the June 2013, despite that November pump.

The second interesting thing is that on the OBV chart, Darkcoin/DASH is already above its all time high of last year despite the fact that the price is still a way off it. As stated above, that doesn't mean anything in absolute terms - it's a relative indicator, but a leading one. Notice that when the OBV signal only dropped 30% from last year's all time high, the price signal dropped right back by over 70%. On the recent rise however, OBV has soared almost in exact proportion to the price indicating that there's potentially quite a significant volume driven move afoot.

The thing about the OBV metric is that it was invented as a way to detect "coiled spring" conditions in the market where this indicator can give advanced warning of scenarios that have not yet manifested themselves in the price but have in the volumetric analysis.

i.e. comparing with price signal, may indicate 'coiled spring' condition. ^^^^ (P.S. "same scale" should read "same timescale")