For those tracking market flows, the 4-hour MACD death cross on $LIGHT (above the zero line) is worth looking at alongside two other things:
Open interest: If it rises after the death cross, it may mean new short positions are being opened; if it falls, the pullback is more likely due to longs closing their positions.
Funding rate: A sharp drop suggests short positions are becoming crowded, so watch out for a move in the opposite direction.
Which signal would you trust?
Don’t take this as advice.
Open interest: If it rises after the death cross, it may mean new short positions are being opened; if it falls, the pullback is more likely due to longs closing their positions.
Funding rate: A sharp drop suggests short positions are becoming crowded, so watch out for a move in the opposite direction.
Which signal would you trust?
Don’t take this as advice.