GlossaryBitcoin Growth Delta
Bitcoin Growth Delta
The growth rate of the closing price minus the growth rate of its cumulative VWAP, smoothed over one year. Above zero, the price is pulling ahead faster than its volume-weighted average; below zero, it is falling behind it. A slow cycle indicator: the crossings of the zero line say more than the level.
On the chart
Green above zero, red below it, with a bold zero line. The values are small, typically hundredths to tenths of a percentage point: they are the average lead per candle over the last year.
How to read it
- Above zero: On a yearly average per candle, the price has grown faster than the entry price of all buyers since the start of the series. A move on fresh volume, not just the average trailing behind.
- Below zero: On a yearly average, the price is falling behind its volume-weighted average, which is typical of bear markets.
- Crossing the zero line: The actual cycle change. Because of the yearly smoothing it comes late, but in return it filters out short countermoves.
Good to know
The longer the series, the slower the cumulative VWAP becomes: each new candle barely changes it. On long series, the delta therefore approaches the yearly average of the price returns per candle, minus the slow drift of the VWAP.
Limitations
- Anchored to the first loaded candle: The VWAP starts where your chart starts. If the chart loads older candles as you scroll back, the anchor shifts and the values change.
- Volume required: If the symbol provides no volume, there is no VWAP and no line.
- Warm-up period: The first line appears after one year of candles.
- Bitcoin only, intended for daily to weekly charts. The only settings are for appearance.