What are Trading Signals?
Trading Signals give you a competitive edge in the crypto market. They analyze key details like price shifts and open interest across major trading pairs on Bybit Futures and Binance Futures. By tracking every price movement and market trend, you'll get instant alerts when potential trades arise. Think of it as having a sharp-eyed partner ensuring you're in the right place at the right time to make profitable trades. Learn more about how trade signals work.
The Importance of Open Interest
Open Interest is more than just a number. It’s a key indicator that helps traders understand market activity and liquidity. In the world of derivatives trading, knowing Open Interest can be the difference between missing out and making a timely trade. Our Trading Signals feature taps into this insight, offering unique information you won’t find elsewhere.
How to Use Trading Signals for Lonf Trades
If you want to trade in the direction of the market, then it is important to determine the movement of the market at the early stage. To do that you need to look at the rapid increase in the Open interest that also correlates to the increase in the price of the asset. For this setup, you may use the following filters for the pump screener:
Period - 5 mins, Price Change - 1%, Open Interest - 4%.
Settings for Optimal Entries:
- Amount per Trade: $25
- Take Profit: 1%
- Stop Loss: 9%
- Move Stop Loss to Breakeven: NA
Optional DCA Settings:
- Take Profit type: Based on average price
- Stop Loss type: Based on entry price
- DCA order count: 4
- Price deviation: 2
- Volume deviation multiplier: 1
- Price deviation multiplier: 1
If you apply these settings this is the result that you should see:
How do you determine if the asset is good for trading?
First of all, you need to check the Liquidity of the asset. This can be quickly determined by looking at the chart. If you see not smooth candles then most likely the liquidity of this particular pair is very low, and this is a bad sign:
Secondly, pay attention to the signal counter. The priority should go to the first 3 signals that occurred during the past 24 hours. This increases the probability that your signal is received at the beginning of the upward movement.
Thirdly, if the signal generated a large spike in both Open Interest and Price relative to the previous candles then you will most likely not see the continuation of the upward movement
Disclaimer: The information shared in this post is not meant to be financial advice. Trading cryptocurrencies carries a high level of risk and may lead to significant losses. We strongly recommend that all traders do their own research and seek advice from a professional before making any trading decisions. WunderTrading is not liable for any losses resulting from the use of our Trading Signals or other tools.