The Turnover Rate indicator is an exclusive token metric only available on Candlestick.
In general, The Turnover Rate can reflect the activity status of traders on decentralized exchanges. According to historical data, the all-time high peak of turnovers appears before a token reaches the price peak.
Alpha Trader Tips - Turnover Rate ATH presents before Price Peaks
The Turnover Rate all-time high is often present before the price climbs top.
Example 01 - $ELON
Token: Dogelon Mars
Indicator: 1-year time frame Turnover Rate
Turnovers All-Time High: October 30, 2021
Price Top: October 31, 2021
Take another example.
Example 02 - $FXS
Token: Frax Share
Indicator: 1-year time frame Turnover Rate
Turnovers All-Time High: April 2, 2022
Price Top: April 4, 2022
As a result, the Turnover Rate could act as an indicator searching for a long-term price top.
Alpha Trader Tips - Combine Turnovers with Vol & Net Buy Indicators
Be aware that the Turnover Rate may become ineffective if you apply it as a single indicator. Instead, it should be combined with the Trading Volume with Size Distribution and Net Buy Amount metrics to validate a firm uptrend.
Example - $FTM
Token: Fantom
Indicator: 1-year time frame Turnover Rate
Turnovers All-Time High: August 30, 2021
After multiple indicators turned bullish that validating a solid uptrend, Fantom price set new highs in a row.
The Ensuing Price Highs.: September 9, 2021, October 9, 2021, and October 26, 2021.
