FUNDING

Hello everyone. This is the Funding Indicator, and I'm going to tell you all about it.

I've selected 40 cryptocurrencies for this indicator to analyze. It analyzes all of them and combines the data in a unique way. How does it work exactly?

You will notice 4 different graphs in the indicator:

Change in the number of cryptocurrencies with funding above standard values (F > 0.01)

Change in the number of cryptocurrencies with standard funding values (F = 0.01)

Change in the number of cryptocurrencies with funding below standard values (F < 0.01)

Change in the number of cryptocurrencies with negative funding values (F < 0)

Why do we even need to analyze this?
The point is that by analyzing the funding rates of the entire market, as we do with our indicator, we can understand the overall sentiment of the mass of traders. For instance, if most cryptocurrencies are trading with a negative funding rate, we can assume that the market is currently opening predominantly short positions. Conversely, if most coins are trading with funding rates above standard values, it might suggest market euphoria, signaling that we should be cautious with long positions, as the market might move against the majority.

Therefore, by analyzing the funding rates of the entire market at once, we can observe in real-time how the crowd's sentiment is shifting. This allows us to timely open or, conversely, close our positions, anticipating a move against the majority's expectation. This gives us an advantage over other market participants.

The settings are extremely simple. In the "Styles" tab, you can select which groups of coins to display, as I described above.



Here are a few examples below.

In this version, I've kept only two graphs:

Change in the number of cryptocurrencies with funding above standard values (F > 0.01)

Change in the number of cryptocurrencies with funding below standard values (F < 0.01)

The moment these lines touch can be a good indicator for identifying a market bottom.
A bottom can also be identified by keeping only the graph for negative funding values.


Also, a very important note! Remember, the funding rate doesn't directly tell us the intentions of the majority; we interpret the sentiment indirectly through it. I wish you good luck in using it!