What are trade signals?
In simple terms, Trade Signals helps you make better trading decisions by looking closely at two main things: how prices are changing and the number of contracts that are open and not yet settled (open interest). We keep a very close eye on the market, checking every single minute for every trading pair on two big trading platforms: Bybit Futures and Binance Futures. This will help you to notice which trading pairs are beginning to show interesting changes right away. It's like having a smart assistant that watches the markets for you, making sure you don't miss out on good opportunities to trade.
What is Open Interest?
The Open Interest (OI) indicator in trading refers to the total number of outstanding derivative contracts, such as options or futures, that have not been settled. Open Interest provides key insights into the market's trading activity and liquidity, and it is particularly important in the derivatives markets.
Combination of Open Interest and Price
The relationship between open interest (OI) and price change is key for traders to gauge market trends and sentiment. Here's how they're linked:
Trend Confirmation: Rising OI and prices suggest a strong, continuing trend. Falling OI and prices might indicate a weakening trend.
Market Sentiment: An increase in price with a decrease in OI could signal an upcoming trend reversal, as it shows a lack of new interest at higher prices.
Volume and OI: High volume with increasing OI supports the legitimacy of the current price trend, indicating active participation.
Reversals: A mismatch between price trends and OI changes can hint at potential market reversals.
Liquidity: A high OI indicates a more liquid market, making it easier for traders to enter or exit positions.
Trade Signals Interface
The workspace is broken down into three main areas: Trading Signals, a Chart with a trading area, and Positions.
Trading Signals shows a list of alerts that bring together information like how the price is moving, how much open interest is changing, what the trading pair is called, where it's being traded, and when the alert was sent.
The Filters at the top of the Signal list let you pick only the alerts that fit what you're looking for in trading. You can adjust the Time Period (5, 10, 15 minutes), the smallest price change you're interested in (from 1% to 10%), and how much the open interest should change (from 1% to 10%).
You can also set up alerts for the Pump Screener. There are three types of alerts you can turn on in the Pump Screener Settings:
Audio Notification - This will play a sound when a new signal comes in.
Browser Notification - This will show a pop-up window in your browser when a new signal is received.
Telegram Notification - This will send you a message on Telegram when a new signal is received.
If you click on an alert, it will instantly show you the chart for that trading pair, set to a 1-minute view.
Under the chart, there's an indicator that displays the Open Interest for the asset. To the right side of the chart, there's a trading terminal that lets you make trades with just one click.
You can create a pre-set for your trading preference, including options for taking profit, stopping losses, moving to break even, and using DCA (Dollar Cost Averaging). Once you adjust and save your trading plan, it will automatically be used for all your trades from this terminal.
After you start the position, it will appear in the Position area under the graph. In the strategy's action part, you can either close the strategy at market price or select "View Chart" to see the pair's chart. This will visually indicate where you entered on the chart.
Trading setups
Here is the list of trading setups to show what presets should be used to trade.