Liq Short (Short Liquidations) → Short (Fade / Squeeze Exhaustion)
This is a disciplined “post-squeeze” short. Short liquidations are forced buy orders that often push price sharply higher near the end of a move. In practice, these spikes frequently occur at highs or during the final phase of an impulse.
Dump (60s) + Long Liquidations → Long (Reversal / Reclaim)
This is a disciplined “post-capitulation” long. A sharp dump combined with large long liquidations often means weak leverage has been flushed out. After such events, price frequently snaps back toward fair value.
Pump → OI Down (600s) → Short on the Pullback
This is a systematic “post-overheat” short. A sharp pump often means acceleration driven by emotion-driven buying and late market orders chasing price. If Open Interest starts dropping shortly after, the market is signaling that leverage is being unwound, and the impulse is running out of fuel.
Golden Funding: Extremely Negative Funding + Rising OI → Long on the Pullback
This is the “pro bread-and-butter” setup: when funding goes deeply negative, the market shows a strong skew toward shorts — shorts pay longs at each funding settlement interval.
Trend Long: Rising OI + Premium Index Not Negative
This is a beginner-friendly classic: the market starts adding leverage (Open Interest is rising), while derivatives are not trading at a discount to the underlying (the Premium Index is not negative). In this regime, the odds of continuation are typically higher because the derivatives market doesn’t look “broken” or suppressed.