AMPL Trading 101

As established in other sections, AMPL is a rebasing token.

This means that holders will experience profits/losses from both supply and price, rendering traditional trading strategies and indicators less effective.

The Ampleforth Protocol is persistently attempting to achieve equilibrium between AMPL’s price and supply to reach the price target of a CPI-adjusted 2019 USD.

Ampleforth is like an automated reserve bank where instead of manually manipulating monetary policy (i.e., US Fed printing money), the protocol algorithmically adjusts monetary policy, determining the exact supply changes necessary to maintain its inflation-resistant unit of account.

With this in mind, the Ampleforth Protocol can only ever be in two possible states:

• The system is adjusting the supply

• The system is not adjusting the supply