Seeing that everyone is confused, let me explain the current data situation to you:

1: Position

Data characteristics: prices fall and positions continue to increase;

Data interpretation: The increase in positions does not mean that bulls have entered the market or shorts have entered the market. The positions of the long and short sides are always 1:1. The lower the price, the more the positions increase. This means that some people continue to enter the market to buy the bottom, and at the same time, some people are chasing the shorts, and there is a net long position. Only net short positions will lead to an increase in positions. If the short position is closed at profit when the price drops, and the long position is stopped at loss, the position will be significantly reduced at this time;

Data performance: So if the market is oscillating at this time, it will soon reverse to eliminate the positions of short chasers. If it is a trend market, then it is a relay stage now, and the trend will continue to eliminate the positions of short-chasers. The final performance of long positions will cause the positions to be significantly reduced;

2: Funding rate

Data characteristics: negative funding rate, price decline, positive funding rate, price rise;

Data interpretation: In fact, I have talked about how to use the funding rate before. If it is the extreme funding rate of the copycat, then the market will basically come out soon, but if it is the funding rate of the big pie, the funding rate is not high. It often takes a while to get out of the market, because the funding rate is collected three times a day. When the funding rate is not high, even if it is collected eight times a day, traders will not consider the wear and tear of the funding rate. , so its effect will take time to unfold;

Data performance: If you are doing short-term trading, if the funding rate turns positive, it is suitable to open long, because this indicates that bulls are strong; if the funding rate turns negative, it is suitable to open short, because this indicates that shorts are strong; if you are doing long-term trading, then You need to observe whether the positive or negative value of the funding rate remains high for a long time (monthly basis). If so, the market will explode (positive funding rate is high) or short (negative funding rate is high);