How to capture bullish and bearish signals?

2022-07-20 22:45:00 · 1642 views · 5 min read

 

Every on-chain data of a token conveys signals.

 

30+ tokens charts and metrics, Real-time Trade Feeds, and Actionable Bullish & Bearish Signals, all of which you can get in Candlestick.

 

This page provides a quick guidebook about identifying Candlestick metric bullish/bearish signals.

 

 

Buy/Sell Pressure

 

Average HODL Price

  • Higher than the current price
  • Bullish – The potential risk of selling a sizeable amount of tokens will reduce as most investors have not yet gained the expected profit.
  • Lower than the current price
  • Bearish – The potential risk of selling a sizeable amount of tokens will increase as most investors have already gained the expected profit.

 

Token Balance Distribution

  • Increase during price falling
  • Bullish – Institutions or crypto whales have finished the token accumulation at a low price and are ready to pull up.

 

Approved Sellable Amount on DEXs

  • Decrease
  • Bullish – The amount of a token approved to sell on DEX by traders is decreasing.
  • Increase
  • Bearish – The amount of a token approved to sell on DEX by traders increases.

 

 

Exchange Flows

 

Net CEX Outflow

  • >0
  • Bullish – Traders deposit fewer tokens to centralized exchanges than withdrawals.
  • <0
  • Bearish – Traders deposit more tokens to centralized exchanges than withdrawals

 

Balances on CEXs

  • Decrease
  • Bullish – The number of tokens held on centralized exchanges for selling drops.
  • Increase
  • Bearish – The number of tokens held on centralized exchanges for selling increases.

 

 

 

DEX Trading

 

Net Buy Amount*

  • >0
  • Bullish – The buying power of a token is stronger than the selling power, boosting the price possibly.
  • <0
  • Bearish – The selling power of a token is stronger than the buying power, dropping the price perhaps.

 

Trading Volume with Size Distribution

  • High volume during price rising
  • Bullish – The token attracts more optimistic investors. This signal could strengthen the rising trend.
  • Low volume during price falling
  • Bullish – Lesser traders are willing to sell the tokens at the current low price. The price may occur reversal soon.
  • High volume during price falling
  • Bearish – Traders’ selling does not stop even at a lower price. The falling trend would continue.
  • Low volume during price rising
  • Bearish – Buying power is weak to support the current rising price, which may cause the upward price trend to stop

 

Turnover Rate

  • High turnover rates during price rising
  • Bullish – More active traders. Reinforce the rising trend.
  • Low turnover rates during price falling
  • Bullish – Lesser tokens are sold at the current low price. The falling trend is fading, and the price may reach a resistance level soon. 
  • High turnover rates during price falling
  • Bearish – Negative sentiment among investors indicates that the falling trend will continue.
  • Low turnover rates during price rising
  • Bearish – The current rising price is not supported by reliable buy power, which may cause the upward price trend to stop.

 

Unique Traders

  • Increase
  • Bullish – An increasing number of traders trading a particular token.
  • Decrease
  • Bearish – A decreasing number of traders trading a specific token.

 

 

Holders

Holders

  • Increase
  • Bullish – An increasing number of holders.
  • Decrease
  • Bearish – A decreasing number of holders.

 

Active Addresses

  • Increase
  • Bullish – More active transfers and traders.
  • Decrease
  • Bearish – Weaker transfers and fewer traders.

 

New Addresses

  • >0
  • Bullish – More new-coming investors.

 

 

 

Liquidity

 

Net Add Amount for Liquidity

  • >0
  • Bullish – More tokens are provided into the pool to increase liquidity.
  • <0
  • Bearish – More tokens are removed from the liquidity pool.

 

 

Liquidity Providers

  • Increase
  • Bullish – A growing number of addresses provides liquidity to a token’s trading pairs on DEX.
  • Decrease
  • Bearish – A declining number of addresses provides liquidity to a token’s trading pairs on DEX.

 

 

 

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