Funding is one of my favorite indicators to predict bitcoin price. But it should be applied only within price action context, only and it is long term indicator, do not use it for scalps or day trading. weekly + positions are great for this kind of an indicator.
When funding is:
negative: we look for long entries;
positive: short entries;
BUT, it is not always like that.
Scenarios on how to use it:
1. Funding is abnormally positive for a week or more and the price is in consolidation ----- short
examples:
2. Funding is abnormally negative for a week or more and the price is in consolidation ----- long
3. The price is going up on negative funding --- long the shit out of it
Important, be careful with timing and do tnot rush to buy/sell seeing first signs of a consolidation
After strong uptrend/downtrend ---- do not rush trade. wait
Downtrend - funding negative --- wait
Uptrend funding positive -wait
Are you sure about 3k?
When funding is:
negative: we look for long entries;
positive: short entries;
BUT, it is not always like that.
Scenarios on how to use it:
1. Funding is abnormally positive for a week or more and the price is in consolidation ----- short
examples:
Important, be careful with timing and do tnot rush to buy/sell seeing first signs of a consolidation
After strong uptrend/downtrend ---- do not rush trade. wait
Downtrend - funding negative --- wait
Uptrend funding positive -wait
Are you sure about 3k?