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$BTC $ETH $SOXS #合约 #合约交易 #LiveTradingNotes
🗓 10/9 23:00 CST
BTC’s funding rate for this period is +0.00127%, and ETH’s is +0.00118%.
I’ll be blunt: both are positive, which means longs are paying shorts. Many people see a positive funding rate and assume it’s bullish. They’ve actually got it backwards.
Funding rates tell you which side is more crowded, not where the price is headed. The more crowded the longs are, the more they pay. Essentially, it’s a cost of holding a position, not a directional signal!
The structure to really watch out for is when the funding rate reaches an extreme on one side, while the price starts moving in the opposite direction. Everyone on the crowded side is paying to hold their positions. One sharp wick down can trigger a chain of stop-losses and easily create a long upper wick. Look at SOXS: the 35.080 level has been tested once in the past 6 days. The upper wicks on the candles around that level averaged 66% of the full candle, and trading volume on the test was 513% of the average over the past 60 candles—classic signs of a breakout attempt getting knocked back. But on the 4H chart, EMA20 is still 1.08% above EMA50, so the medium-term structure hasn’t broken down. Don’t reverse your position just because you see a wick.
I’ll be blunt: here’s a rule worth remembering—use funding rates only to judge which side has more participants and whether holding positions is expensive. Confirm direction by looking at price structure itself. Don’t mix the two up.
Are you positioned more long or short?
—— Alpha Quantitative Technology
The above is a market recap and personal opinion. It does not constitute any trading advice, nor does it guarantee returns. Futures are leveraged; make your own decisions and bear full responsibility for your gains or losses.
$BTC $ETH $SOXS #合约 #合约交易 #LiveTradingNotes
🗓 10/9 23:00 CST
BTC’s funding rate for this period is +0.00127%, and ETH’s is +0.00118%.
I’ll be blunt: both are positive, which means longs are paying shorts. Many people see a positive funding rate and assume it’s bullish. They’ve actually got it backwards.
Funding rates tell you which side is more crowded, not where the price is headed. The more crowded the longs are, the more they pay. Essentially, it’s a cost of holding a position, not a directional signal!
The structure to really watch out for is when the funding rate reaches an extreme on one side, while the price starts moving in the opposite direction. Everyone on the crowded side is paying to hold their positions. One sharp wick down can trigger a chain of stop-losses and easily create a long upper wick. Look at SOXS: the 35.080 level has been tested once in the past 6 days. The upper wicks on the candles around that level averaged 66% of the full candle, and trading volume on the test was 513% of the average over the past 60 candles—classic signs of a breakout attempt getting knocked back. But on the 4H chart, EMA20 is still 1.08% above EMA50, so the medium-term structure hasn’t broken down. Don’t reverse your position just because you see a wick.
I’ll be blunt: here’s a rule worth remembering—use funding rates only to judge which side has more participants and whether holding positions is expensive. Confirm direction by looking at price structure itself. Don’t mix the two up.
Are you positioned more long or short?
—— Alpha Quantitative Technology
The above is a market recap and personal opinion. It does not constitute any trading advice, nor does it guarantee returns. Futures are leveraged; make your own decisions and bear full responsibility for your gains or losses.