Realized P/L Momentum Index

SQL of the Week 010

What Is It

Realized P/L Momentum Index is an indicator that measures the intensity and direction of profit and loss realization by market participants relative to recent norms.

Unlike the STH Stress Thermometer (#009), which shows paper (unrealized) profits/losses, this indicator tracks actual actions - when participants actually move coins and realize P/L.

This is a momentum indicator, not contrarian:

• when profit-taking is anomalously high → market is in a strong phase, momentum continues

• when loss realization is anomalously high → market is in a weak phase, risk of continued decline

The indicator shows the quality of capital flow, not just its volume.

Scale (±3)

Key principle: this is a momentum indicator - high positive values (+2, +3) historically deliver better forward returns, not signal a reversal.

---

🎯 Help us make the newsletter as useful as possible for you. -> The survey takes less than 1 minute.

---

Methodology

Formula