# On-Chain Signals

On-Chain Signals is an indicator on [Vela](https://vela.luxalgo.com/chart), our next-generation charting platform, written in Pine Script®.

On-Chain Signals distills four blockchain metrics (Net Network Growth, In the Money, Concentration, and Large Transactions) into a single bullish, bearish, or neutral market bias. Read it as a gauge, as historical plots, or as a smoothed average, with thresholds adjustable per signal: a daily-timeframe sentiment compass for crypto traders.

- Indicator in the LuxAlgo Library, by LuxAlgo, published Aug 6, 2025.
- Access: free.
- Concepts: [On-chain Valuation Suite](https://www.luxalgo.com/library/concept/on-chain-valuation-suite/) (primary)
- Open on Vela: https://vela.luxalgo.com/chart?pineScriptCodeId=cmpwn48ex005xvhsg0j5mxj2d
- Page: https://www.luxalgo.com/library/indicator/on-chain-signals/

**On-Chain Signals** polls four strands of blockchain data and returns one verdict: bullish, bearish, or neutral. Net Network Growth tracks the change in total addresses, In the Money follows the rate of change of the estimated balance held by profitable addresses (their count times the average address balance, smoothed over 7 days), Concentration watches whale and investor holdings, and Large Transactions measures the percentage gap between the 21-day and 30-day EMAs of $100k+ transaction counts: [on-chain metrics](https://www.luxalgo.com/library/concept/on-chain-valuation-suite/) doing the job of a sentiment dial, powered by IntoTheBlock data.

## How to Trade the On-Chain Signals?

- **Bullish bias**: more of the four signals lean bullish than bearish: conditions favor upside.
- **Bearish bias**: bearish signals outnumber bullish ones, warning of downside pressure.
- **Neutral bias**: an even split, typical of consolidation and indecision.
- **Three display modes**: the gauge for an at-a-glance state, Historical Data for plotting each signal through time and tuning its thresholds, and Average for smoothing the bias (+1, 0, -1) into a longer-term sentiment curve.

The indicator is built for the daily timeframe, where the underlying on-chain data actually updates. Treat the bias as context wrapped around entries from price structure, not a signal to trade in isolation, and lean on the historical mode when calibrating thresholds to a specific coin.

## On-Chain Signals Settings

- **Display Mode**: gauge, historical plots, or average.
- **Average Settings**: smoothing type (triangular, simple, or exponential) plus the period length.
- **Thresholds**: bullish and bearish trigger levels for each of the four signals.
- **Dashboard**: a compact readout with adjustable position and size.
- **Gauge Customization** and **Style Options**: gauge scale, curved display, color schemes, and per-signal plot visibility.

## Frequently Asked Questions

### Which timeframe should I run it on?

The daily chart. On-chain data refreshes on that cadence, so lower timeframes add noise without adding information.

### How is this different from On-Chain Analysis?

[On-Chain Analysis](https://www.luxalgo.com/library/indicator/on-chain-analysis/) offers a deep menu of individually plottable metrics, from MVRV to TVL; On-Chain Signals compresses exactly four of them into one directional bias. Many traders read the bias here, then investigate its drivers there.

### Is On-Chain Signals a paid indicator?

No. You can use it free through the LuxAlgo Library. It can also be run in Quant, our coding agent, directly from this page.

## Related indicators

- [On-Chain Analysis](https://www.luxalgo.com/library/indicator/on-chain-analysis/) (On-chain Valuation Suite): markdown at https://www.luxalgo.com/library/indicator/on-chain-analysis.md
- [Crypto Wallets Profitability & Performance](https://www.luxalgo.com/library/indicator/crypto-wallets-profitability-performance/) (On-chain Valuation Suite): markdown at https://www.luxalgo.com/library/indicator/crypto-wallets-profitability-performance.md
- [Volume Bubbles & Liquidity Heatmap](https://www.luxalgo.com/library/indicator/volume-bubbles-liquidity-heatmap/) (Liquidation Clusters): markdown at https://www.luxalgo.com/library/indicator/volume-bubbles-liquidity-heatmap.md
- [Crypto Liquidation Heatmap](https://www.luxalgo.com/library/indicator/crypto-liquidation-heatmap/) (Liquidation Clusters): markdown at https://www.luxalgo.com/library/indicator/crypto-liquidation-heatmap.md
- [Liquidation Levels](https://www.luxalgo.com/library/indicator/liquidation-levels/) (Liquidation Clusters): markdown at https://www.luxalgo.com/library/indicator/liquidation-levels.md
- [Bitcoin Power Law Clock](https://www.luxalgo.com/library/indicator/bitcoin-power-law-clock/) (Crypto Cycle Models): markdown at https://www.luxalgo.com/library/indicator/bitcoin-power-law-clock.md
- [Bitcoin Power Law](https://www.luxalgo.com/library/indicator/bitcoin-power-law/) (Crypto Cycle Models): markdown at https://www.luxalgo.com/library/indicator/bitcoin-power-law.md
- [Open Interest Inflows & Outflows](https://www.luxalgo.com/library/indicator/open-interest-inflows-outflows/) (Open Interest): markdown at https://www.luxalgo.com/library/indicator/open-interest-inflows-outflows.md

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Source: https://www.luxalgo.com/library/indicator/on-chain-signals/ (LuxAlgo Library). Free to use with attribution: https://www.luxalgo.com/library/license/