🐋 For those of you watching the money, you can compare this 4-hour MACD death cross above the zero line ($MAGIC ) against two things:
· Futures open interest: If open interest rises after the death cross, someone may be opening new short positions; if it falls, the pullback is more likely due to longs closing their positions.
· Funding rate: A rapid drop means short positions are piling in, which is actually a reason to watch out for a move in the opposite direction.
What will you do if the market moves the other way?
#MAGIC
Don’t treat this as a buy or sell signal.
· Futures open interest: If open interest rises after the death cross, someone may be opening new short positions; if it falls, the pullback is more likely due to longs closing their positions.
· Funding rate: A rapid drop means short positions are piling in, which is actually a reason to watch out for a move in the opposite direction.
What will you do if the market moves the other way?
#MAGIC
Don’t treat this as a buy or sell signal.