Dunamu has unveiled a new indicator that allows a comprehensive assessment of price trends in the digital asset market. It brings multiple technical indicators into one, enabling investors to intuitively judge whether the market is overheating or in a slump.

Dunamu, which operates digital asset exchange Upbit, said on May 29 it has newly introduced a “technical analysis composite indicator” to its digital asset-focused integrated data analytics platform, Upbit Data Lab.

The indicator is a type of comprehensive diagnostic chart that shows current market trends in digital assets. It is designed so investors can easily check whether the market is in an uptrend or a downtrend based on digital asset price data.

The technical analysis composite indicator consolidates 10 major technical indicators used in traditional financial markets, including the relative strength index (RSI), Bollinger Bands, stochastic and moving average divergence.

Because each indicator has different calculation methods and interpretation standards, they can send different signals such as oversold, neutral and overbought. Upbit Data Lab standardized those signals into a score ranging from a minimum of 0 to a maximum of 100.

A score close to 0 means the market is in a slump or oversold condition due to excessive contraction. By contrast, a score close to 100 can be interpreted as overheating or overbought conditions as market heat becomes excessively elevated.

The indicator is calculated not on the movement of a specific digital asset, but based on the “Upbit Composite Index” that covers all assets supported for trading on Upbit. As a result, investors can check price trends across the broader domestic digital asset market rather than short-term spikes or drops in some assets.

Dunamu expects market interpretation to become more sophisticated when used together with existing Upbit Data Lab indicators. For example, it said viewing the “Fear and Greed Index,” which shows investor sentiment, alongside the price-trend-focused technical analysis composite indicator allows a multi-faceted assessment of current market conditions.

Daehyun Kim (김대현), Dunamu’s chief data officer (CDO), said, “We standardized expert analytical tools into an indicator that anyone can easily understand by combining them with the Upbit Composite Index.” He added, “We hope many investors will use it as reference material to interpret market trends in a three-dimensional and multi-faceted way.”