> For the complete documentation index, see [llms.txt](https://userguide.cryptoquant.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://userguide.cryptoquant.com/cryptoquant-metrics/network/nvt-golden-cross.md).
# NVT Golden Cross
NVT Golden Cross (NVT\_GC) is a Bollinger-band-like signaling indicator based on NVT, defined as the following equation
## Definition
NVT Golden Cross (NVT\_GC) is a [Bollinger-band](https://en.wikipedia.org/wiki/Bollinger_Bands)-like signaling indicator based on NVT, defined as the following equation.
$$
\text{NVT} = \frac{\text{Market Cap}}{\text{Transaction Volume}} \\
\text{NVT\_diff} = \text{NVT (10 days moving average)} - \text{NVT (30 days moving average)} \\
\text{NVT\_GC} = \frac{\text{NVT\_diff}}{\text{NVT\_diff (300 days moving standard deviation)}}
$$
## Interpretation
NVT Golden Cross targets to generate short or long signals by comparing the short-term trend of NVT and the long-term trend of NVT.
This **leading indicator** predicts the appearances of local tops and bottoms, which helps traders to take their short or long positions.
### By value itself
**Predicting Local Tops and Bottoms**
* **Values over ‘2.2’** : **Short Signal**
If the short-term trend is way greater than the long-term trend is, the network can be interpreted as overpriced and will soon revert to mean value, meaning **short signal**.
* **Values under ‘-1.6’** : **Long Signal**
If the long-term trend is way greater than the short-term trend is, the network can be interpreted as under-priced and will soon revert to mean value, meaning **long signal**.
### By examining trend
It shows **the comparative trend difference between long-term and short-term.**
* **Increasing trend** : Marketcap(Price) is **heating up** compared to transaction volume
* **Decreasing** **trend** : Marketcap(Price) is **cooling down** compared to transaction volume
## Link to Our Data
* [NVT Golden Cross in CryptoQuant Live Chart](https://cryptoquant.com/overview/full/201?window=day)
* [NVT Golden Cross in CryptoQuant Data API docs](https://cryptoquant.com/docs/#operation/getNVTGoldenCross)
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