• Explore
  • Live Charts
  • Quicktake
  • Explore
  • Live Charts
  • Quicktake
  • Start Exploring
  • How to capture bullish and bearish signals?
  • Smart Money
  • Candlestick DEX Datasource
  • Token Status & Charts Availability
  • DEX Trades
    • Net Buy Value
    • Trading Volume
    • Turnover Rate
    • Entry Price Distribution
    • Unique Traders
    • DEX Balance
    • Balances on Exchanges
  • CEX
    • Net CEX Outflow
    • CEX Balance
  • Liquidity
    • Net Add Liquidity
    • Liquidity Providers
  • Holders
    • Top Holders
    • Token Balance Distribution
    • Holders
    • Active Holders
    • New Holders

Turnover Rate

This article introduces the Turnover Rate and how to capture bullish and bearish signals via this metric.


Definition

The Turnover Rate refers to the percentage of a specific token’s trading amount in its Total Supply during a particular period.

turnovers

    \[Turnover\ Rate = \frac{Transaction\ Token\ Amount}{Total\ Supply}\]

For example, suppose there are three transactions of examplecoins in a given time, and the Total Supply is 10,000.

Transaction
Sell 200 examplecoins
Buy 200 examplecoins
Sell 100 examplecoins
Turnover Rate: 5% ( (200+200+100)/10,000=0.05 )

How can I use it?

The Turnover Rate can reflect the activity status of traders in the market. A low Turnover Rate suggests that traders are inactive. However, a high Turnover Rate indicates the opposite situation.

Identify bullish and bearish signals

The Turnover Rate can help traders make token buy/sell decisions similar to the metric trading volume. Combined with price volatility, there are four typical situations.

Metric Condition 01 Signal
Turnover Rate High Turnover Rate during price rising Bullish

Positive signals. The token is attracting more active traders. This signal could reinforce the rising trend.

A rising price with a high Turnover Rate means an increasing number of transactions in the market. Optimistic buyers with solid buying power can push the price higher.

Metric Condition 02 Signal
Turnover Rate Low Turnover Rate during price falling Bullish

Positive signals. The strength of a falling trend is fading as lesser tokens are being sold at a low price. Hence, the price may reach a resistance level soon.

A falling price with a low Turnover Rate means inactive traders and fewer transactions in the current falling market. This signal may reflect that the selling pressure has been released, stopping the falling trend and followed by a price reversal.

Metric Condition 03 Signal
Turnover Rate High Turnover Rate during price falling Bearish

Negative sentiment among investors and indicates that the falling trend would continue.

A falling price with a high Turnover Rate may indicate panic selling has occurred in the market. Namely, disappointed traders are selling tokens even at a lower price, which may generate intense sell pressure on the market and lead to continuous price fall.

Metric Condition 04 Signal
Turnover Rate Low Turnover Rate during price rising Bearish

Weaker buy power supports the current rising price, which may cause the upward price trend to stop.

A rising price with a low Turnover Rate indicates the price rise may not continue. A low Turnover Rate represents that traders are inactive, and buyers are likely to have little power to fuel the price continually. Therefore, it signals a potential break downward.


Check Live Data Now

  • Turnover Rate
  • Trading Volume
  • Unique Traders

Was this helpful?

1 Yes  No
You may also check
  • Liquidity Providers
  • Net Add Liquidity
  • New Holders
  • Active Holders
  • Holders
  • Holders
@Copyright 2022 Candlestick.io. All Rights Reserved.