SD Median MVRV-Z

🧠 Overview
SD Median MVRV-Z is a trend-following indicator that uses on-chain valuation signals as a supportive filter. It blends the momentum of the MVRV Z-score with a dynamic median-based price structure to provide cleaner, more reliable directional signals. This tool is designed to identify when price and trend align with favorable broader context — not to pinpoint overbought or oversold extremes.

🧩 Key Features

• Trend-Following Core: Signals are built around directional strength, not reversion.
  
  
• MVRV Z-Score Momentum: Utilizes the statistical momentum of Market Cap vs Realized Cap as a macro trend driver.
  
  
• Rolling Median Filter: Applies a price-based condition to ensure trend signals are not triggered during short-term counter-moves or noise.
  
  
• Threshold Customization: Input controls allow traders to define the strength required to trigger long or short signals.
  
  
• Dynamic Visualization: Candle coloring and filled zones provide instant feedback on current market regime.
  

🔍 How It Works

• Trend Signal: The MVRV ratio is normalized via Z-scoring to produce a momentum-like signal based on how far current valuation deviates from its rolling average.
  
  
• Price Filter: A rolling median and standard deviation of price define an upper and lower band. These serve to filter out MVRV-Z signals that occur when price is moving against the perceived direction.
  
  Signal Logic:
• Long signal = MVRV-Z above threshold and price is not in the lower volatility band.
  
  
• Short signal = MVRV-Z below threshold, regardless of price band (more aggressive condition).
  
  
• Directional Engine (CD): Encodes the market regime state (1 for long, -1 for short, 0 for neutral), and drives all visual outputs.
  

🔁 Use Cases & Applications

• Momentum Confirmation: Identify when on-chain momentum and price structure both confirm a trend direction.
  
  
• Reduced Whipsawing: Filter out weak or conflicting trend signals that would otherwise lead to false entries.
  
  
• Best Suited for BTC: This indicator is specifically tailored for Bitcoin, using BTC’s Market Cap and Realized Cap data from on-chain sources.
  

✅ Conclusion
SD Median MVRV-Z is a trend-centric tool that ensures directional conviction by requiring agreement between price structure and underlying market momentum. It is not meant to detect tops or bottoms, but instead to help traders participate in sustainable moves with greater confidence.

⚠️ Disclaimer
The content provided by this indicator is for educational and informational purposes only. Nothing herein constitutes financial or investment advice. Trading and investing involve risk, including the potential loss of capital. Always backtest and apply risk management suited to your strategy.