This article introduces the Net Buy Value and how to capture bullish and bearish signals via this metric.
Definition
The Net Buy Value equals the purchased value of a particular token minus the sold value on the decentralized exchanges (DEX) in a given time.
[latexpage]
\[ Net\ Buy\ Value = Buy\ Value-Sell\ Value\ (on\ DEX) \]
For example, suppose $2,000 examplecoins are bought, and $1,000 are sold in a month. The Net Buy Value will be $1,000 ($2,000-$1,000=$1,000).
How can I use it?
The Net Buy Value is presented in a bar chart.
- RED represents the selling value, and GREEN shows the buy value of the token.
- A line highlighted in green represents the Net Buy Value of the token.
- Hover around to check exact numbers, including buy, sell, and Net Buy Value. The $ value equals the quantity of the token’s transaction amount multiplied by the token price.
Identify bullish and bearish signals
The Net Buy Value can indicate the strength of buying and selling powers for a particular token in the market.
| Metric | Condition | Signal |
| Net Buy Value | >0 | Bullish |
If the buy value is higher than the sell, the Net Buy Value will be positive. Positive signals that the buying power of a token is stronger than the selling power, boosting the price possibly.
| Metric | Condition | Signal |
| Net Buy Value | <0 | Bearish |
If the sell value is higher than the buy, the Net Buy Value will be negative. Negative signals that the selling power of a token is stronger than the buying power, dropping the price possibly.