Retail investors do not understand how to look at trends, following large investors is the right approach

Instead of drawing lines to find trends, adding data flow

makes the main players' actions clearer

Holder Concentration

Holder Concentration is an indicator that analyzes the structure of asset holders, used to determine whether assets in the market are concentrated in the hands of large investors or dispersed among retail investors.

A brief explanation

1. Black line: Represents price movement.

2. Green and red bar charts:

• Green bar chart: Indicates an increase in holdings by large investors (capital inflow).

• Red bar chart: Indicates a decrease in holdings by large investors (capital outflow).

Application of this chart

Step 1: Price movement

• Pay attention to the upward or downward trend in price, to determine the bullish or bearish direction.

Step 2: Analyze changes in holder concentration

• When the green area increases:

Large investors are buying, market confidence is strong, and prices may continue to rise.

• When the red area increases:

Large investors are selling, and the market may face selling pressure, prices may fall.

Step 3: Combine price and holder concentration to determine trends

1. Price rises + green area increases:

Bullish forces are strong, and prices may continue to rise.

2. Price falls + red area increases:

Market sentiment weakens, and there may be a risk of decline.

3. When prices are fluctuating:

Observe whether new green or red areas appear to confirm the next trend direction.

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