Detailed guide on finding opportunities in crypto derivatives (and spot) markets
It's been a million years since I have done a thread on this cursed platform, so I figured it would be nice to farm a little bit of engagement for once.
Here is the complete guide on platforms I use to find trades with examples.
It's been a million years since I have done a thread on this cursed platform, so I figured it would be nice to farm a little bit of engagement for once.
Here is the complete guide on platforms I use to find trades with examples.
The platforms we will talk about today will be @laevitas1 and @MobChartCrypto.
Both of them are free, although, for Laevitas, I recommend you get a premium subscription as it will allow you to use filters and make your life much easier.
For charting the coins use @VeloData, they also have some of their own screeners if you don't fancy paying for laevitas.
(this is not sponsored by any of those platforms)
Both of them are free, although, for Laevitas, I recommend you get a premium subscription as it will allow you to use filters and make your life much easier.
For charting the coins use @VeloData, they also have some of their own screeners if you don't fancy paying for laevitas.
(this is not sponsored by any of those platforms)
In the thread, we will cover 5 types of trades.
1) OI Blow-off
2) OI rise
3) OI puke
4) Negative funding
5) Spot demand/supply
For all these, I am using min of 10m OI and 50mil volume coins only. This is discretionary as I don't want to trade complete trash, but it is up to you.
If you are not familiar with these terms at all, I recommend you read this free article (and other articles on the blog)
tradingriot.com
1) OI Blow-off
2) OI rise
3) OI puke
4) Negative funding
5) Spot demand/supply
For all these, I am using min of 10m OI and 50mil volume coins only. This is discretionary as I don't want to trade complete trash, but it is up to you.
If you are not familiar with these terms at all, I recommend you read this free article (and other articles on the blog)
tradingriot.com
1) OI Blow-off
This is a situation where perps are aping too hard into the coin in a very short period of time.
These trades are very good mean reversions but can also be tricky, so you won't get on too early and get rolled over.
Pay attention to funding not being too negative and use higher timeframe reference points such as S/R, Volume profile, MAs and so on to find a solid level to fade.
This is a situation where perps are aping too hard into the coin in a very short period of time.
These trades are very good mean reversions but can also be tricky, so you won't get on too early and get rolled over.
Pay attention to funding not being too negative and use higher timeframe reference points such as S/R, Volume profile, MAs and so on to find a solid level to fade.
Example:
Open interest on TRB rose over 75% two days ago, this hits the screener as I look for coins with above 25% OI increase in a single day.
As you can see, this large increase in OI was not led by spot buying (flat CVD/positive funding) and hit right into h1 resistance, this makes it a good fade and the price dropped over 27% in the following 2 days
Open interest on TRB rose over 75% two days ago, this hits the screener as I look for coins with above 25% OI increase in a single day.
As you can see, this large increase in OI was not led by spot buying (flat CVD/positive funding) and hit right into h1 resistance, this makes it a good fade and the price dropped over 27% in the following 2 days
2) OI Rising
If you can catch up on coins that have rising open interest early, you can be at the start of very nice trending moves.
I filtered coins that had an OI increase of 5% and more OI on a day, and I found the sweet spot to be between 5-10%.
Occasionally, these will also fade, so you need to use your strategy/discretion when deciding how exactly you want to trade them.
If you can catch up on coins that have rising open interest early, you can be at the start of very nice trending moves.
I filtered coins that had an OI increase of 5% and more OI on a day, and I found the sweet spot to be between 5-10%.
Occasionally, these will also fade, so you need to use your strategy/discretion when deciding how exactly you want to trade them.
Example:
TIA today picked up around 10% OI during the first leg up; these areas of OI increase often act as support and resistance areas as large buyers/sellers that actually trade size to cause large OI changes will defend the prices when they are revisited.
You can see TIA bounced 10% higher when revisited the level when OI started to pick up without breaking any lower.
TIA today picked up around 10% OI during the first leg up; these areas of OI increase often act as support and resistance areas as large buyers/sellers that actually trade size to cause large OI changes will defend the prices when they are revisited.
You can see TIA bounced 10% higher when revisited the level when OI started to pick up without breaking any lower.
3) OI puke
When you see a large decrease in OI, people are covering their positions/getting stopped out.
This are good spots to play the mean reversion trades as a large amount of market participants have just been shaken out.
When you see a large decrease in OI, people are covering their positions/getting stopped out.
This are good spots to play the mean reversion trades as a large amount of market participants have just been shaken out.
Example:
During a rally in December, AVAX made a pullback with an OI decrease of 33% in a short period of time while the price was not breaking and key structural levels were coming into support.
This is a signal of possible continuation as the market is still looking strong, with a lot of late leveraged longs getting shaken out.
During a rally in December, AVAX made a pullback with an OI decrease of 33% in a short period of time while the price was not breaking and key structural levels were coming into support.
This is a signal of possible continuation as the market is still looking strong, with a lot of late leveraged longs getting shaken out.
4) Negative funding
I think I don't have to introduce this much; I personally don't love these trades as they are the CT flavour of the day and are generally very crowded.
When funding goes extremely negative, it's of a good sign of continuation higher as shorts pay crazy amounts to be short.
Funding can be negative due to many more reasons than just "people revenge shorting".
As I said, it's not my personal favourite, but it can be a great trade when caught early on.
I think I don't have to introduce this much; I personally don't love these trades as they are the CT flavour of the day and are generally very crowded.
When funding goes extremely negative, it's of a good sign of continuation higher as shorts pay crazy amounts to be short.
Funding can be negative due to many more reasons than just "people revenge shorting".
As I said, it's not my personal favourite, but it can be a great trade when caught early on.
Example:
Very self-explanatory on UMA in the last 24 hours.
As I said, funding doesn't necessarily have to be negative because people are shorting; it can also be due to large spot bids or a general mess, as this happens very often on "cartel coins".
Trade these with big caution as these are truly musical chairs' trades.
Very self-explanatory on UMA in the last 24 hours.
As I said, funding doesn't necessarily have to be negative because people are shorting; it can also be due to large spot bids or a general mess, as this happens very often on "cartel coins".
Trade these with big caution as these are truly musical chairs' trades.
5) Spot demand/supply
As a recovering heatmap hater, I was very surprised at how little people care about leaving genuine bid/ask walls on altcoins.
You want to be going with the spot buyer/seller for the vast majority of cases rather than trying to trade against them.
As with everything else, it is not a standalone strategy, but it is very good for finding new trades and for confluence.
As a recovering heatmap hater, I was very surprised at how little people care about leaving genuine bid/ask walls on altcoins.
You want to be going with the spot buyer/seller for the vast majority of cases rather than trying to trade against them.
As with everything else, it is not a standalone strategy, but it is very good for finding new trades and for confluence.
Example:
Link popped on the screener on multiple occasions lately, first as it was hitting a sell wall followed by a selloff and then as a mean reversion trade supported by a larger buy wall.
Link popped on the screener on multiple occasions lately, first as it was hitting a sell wall followed by a selloff and then as a mean reversion trade supported by a larger buy wall.
This concludes the thread.
As I said, these are tools for finding new trades. What makes it hard is the actual execution and forming of trade ideas around them.
If you want to see how I do that, you can pick up the Bootcamp; for a one-time fee, you will get access to over 10 hours of video breaking down my whole trading strategy.
tradingriot.com
As I said, these are tools for finding new trades. What makes it hard is the actual execution and forming of trade ideas around them.
If you want to see how I do that, you can pick up the Bootcamp; for a one-time fee, you will get access to over 10 hours of video breaking down my whole trading strategy.
tradingriot.com
Also, if you want to support free content, You can start trading with me on @_WOO_X.
If you use my link and open your first trade, you will get a 20% Bootcamp discount, Free Blueprint and better Maker/Taker fees.
tradingriot.com
If you use my link and open your first trade, you will get a 20% Bootcamp discount, Free Blueprint and better Maker/Taker fees.
tradingriot.com
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