If you want to know why Net Unrealized Profit/Loss (NUPL) is displayed using candlesticks, I recommend reading the following:
• In this dashboard, I show how the market can be analyzed using the same visual tool (candlesticks) across different areas: price action, derivatives, and on-chain data, thereby unifying the analytical framework. It also includes the history of indicators, their different forms of use, and reference links for further exploration.
• First and foremost, candlesticks are a visual tool for organizing time series data into OHLC format (Open, High, Low, and Close) across different timeframes.
• Under this definition, their application is not limited to price. They can also be used to represent other time series, including on-chain and derivatives metrics.
• It is worth noting that candlesticks applied to on-chain data enable different types of analysis, not just trading analysis. They make it possible to better analyze the effects of technical events on the network, shifts in confidence in exchanges or protocols, etc.
• Check the link below ↓
https://cryptoquant.com/community/dashboard/69706233a662164c84864d2c?e=d_0
Written by _OnChain