A Statistical Edge: The Metrics Savvy Traders Always Track
What gives consistently profitable traders their edge? They focus on the right metrics—not just price, but the data that reveals the market’s next move. Here’s what to track:
1. Volume Trends
Breakout with strong volume = confirmation. Weak volume = likely a fakeout. Volume shows momentum before price moves.
2. Open Interest (OI)
Rising OI during price pumps? Bulls are in control. Falling OI on drops? Bears are exiting. OI reveals market conviction.
3. Funding Rates
Extreme funding rates signal reversals:
• Positive = Long-heavy, risk of correction.
• Negative = Shorts dominant, potential squeeze.
4. BTC Dominance (BTC.D)
BTC.D controls liquidity flow. A rejection at resistance? Bullish for alts. Watching this chart helps time entries.
5. RSI Divergences
• Bullish: RSI rises, price drops → Reversal up.
• Bearish: RSI falls, price rises → Weakening trend.
Divergences often signal moves before the crowd.
6. Liquidations & Sentiment
Extreme fear or euphoria? Reversals are near. Liquidation spikes often mark bottoms.
These metrics help predict moves, not just react to them. If you want to see how I use them in real trades, check out my lead copy trading account, click here to copy and 🚀💰. Data-driven setups, clear execution—let’s level up together. Cheers!