🐋 For those watching the money, $CAP : this daily MACD golden cross (above the zero line) is worth checking against two things:
· Futures open interest: If open interest rises after the golden cross, it probably means new positions are entering; if it falls, the rebound is probably driven by short covering.
· Funding rate: If the rate suddenly spikes, it means long positions chasing the rally are getting crowded—so watch out for a sharp wick in the opposite direction.
What will you do if the market moves the other way next?
· Futures open interest: If open interest rises after the golden cross, it probably means new positions are entering; if it falls, the rebound is probably driven by short covering.
· Funding rate: If the rate suddenly spikes, it means long positions chasing the rally are getting crowded—so watch out for a sharp wick in the opposite direction.
What will you do if the market moves the other way next?