Trend Long: Rising OI + Premium Index Not Negative

Setup Idea

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.

Important: Premium Index > 0 means the perpetual contract is trading above the index price (i.e., at a premium). By itself, this is not a “buy signal”—it’s a sign that the derivatives flow is not working against the long side.

TradingView Checklist (What You Need on the Chart)

Timeframes:

1m for execution
5m for context

Indicators:

VWAP
EMA20
EMA50
Volume
RSI 14

Data:

Open Interest
Premium Index

Conditions (Checklist)

Required

Your screener triggers OI Up (600s)
No Pump (60s) signal in the last ~5 minutes (don’t chase the candle)
Premium Index ≥ 0, or it was negative but is rising back toward 0 (improving)

Optional (Improves Quality)

Price is above VWAP on the 5m chart
OI rises smoothly, without sharp spikes and whipsaws
Premium Index is not printing chaotic spikes (especially important for small-cap alts)

How to Enter Manually

Beginner rule: enter only on a pullback.

Wait for an upside impulse and mark the local high
Wait for a pullback toward VWAP or EMA20
Enter long when:

price holds VWAP/EMA20 (no clean breakdown)
the next candle gives confirmation (at minimum: a close above a local micro-level)

Invalidation (When the Setup Breaks)

To make “1% risk” meaningful, you need a clear exit rule:

Price holds below VWAP (2–3 consecutive 1m closes) and doesn’t reclaim it
OI stops rising and starts falling (or you get an OI Down signal)
Premium Index turns negative and keeps deteriorating (not just a brief wick)

Take Profit (Short Targets, Matching Your Model)

TP1: +1% (close 60–80%)
TP2: +2% (close the remainder)
Alternative: one take profit at +1.5%

Time Stop

If the trade doesn’t produce clean progress within 60–120 minutes, exit. For beginners, a trend trade with no follow-through quickly turns into an exhausting hold.

Common Beginner Mistakes

Buying while Premium Index is negative and worsening (“derivatives are cheaper than the base” → pressure is still active)
Buying right after a Pump (60s) without waiting for a pullback
Ignoring VWAP: being long below VWAP is a different scenario

30-Second Quick Checklist

OI Up ✅
No Pump ✅
Premium ≥ 0 or rising toward 0 ✅
Price holds VWAP ✅
Entry on pullback ✅
If any item is missing — skip the trade.

Execution Examples

#EPICUSDT

Signal:

Execution:

Where to Find These Screeners

Trading and setup-finding screeners are available on crypto-resources.com. It’s a practical tool built for systematic trading—not just for “watching signals.”

The key difference versus public screeners is deep filtering and flexible configuration (volume, coin age, whitelist/blacklist, funding ranges, etc.), plus one-click execution directly from the screener page.

With unfiltered public signals, the workflow usually looks like this: you get a noisy alert stream, manually verify data across multiple platforms, switch between charts and terminals, and ultimately lose what matters most—time and focus.

Very quickly, trading turns into low-efficiency busywork: signals arrive late, the best entries disappear, and instead of following a system, you spend your session endlessly “processing alerts.”

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