There’s something strange I noticed in trending coins… 👀
Why do some coins’ moves not end after a day or two?
And why does the volatility become stronger every time the number of traders increases?
I started monitoring 3 factors:
Interest in the coin 🔥
The more attention there is, the higher the positions and leverage.
Volatility speed ⚡
Strong rise → Short
Then a strong candle upward → liquidations
Then a rapid drop → new long → new liquidations.
Time ⏳
And sometimes the game lasts several days, not hours.
And this is where I started asking myself:
Could liquidation zones be the key?
What if we add to it the 30-minute candle start price + the direction + 10x leverage?
Can we build a simple equation that defines areas worth monitoring?
I don’t have the answer yet.
But I’m going to try it on the real market.
And if a repeated result appears…
We may be facing a different way to read market trends. 🦊#trend