📊 **How to use a heat map with funding rates and trading volume (24h)** 📈
A heat map like the one from Binance Futures is a powerful tool for traders. Here’s how to interpret it and make the most of it:
1. **Size of the squares**: Represents the trading volume in the last 24 hours. Larger squares (like BIDUSDT or TRBUSDT) indicate higher trading activity, which usually means more liquidity and opportunities.
2. **Color of the squares**: Shows the funding rate (funding rate).
- 🟢 **Green** (e.g., BIDUSDT +0.0050%): Positive rates, longs pay shorts. Indicates bullish sentiment.
- 🔴 **Red** (e.g., MEUSDT -0.6162%): Negative rates, shorts pay longs. Suggests bearish pressure.
- The more intense the color, the greater the magnitude of the rate.
3. **Numerical values**:
- The price (e.g., BIDUSDT $0.05936) is the current value of the pair.
- The funding rate (e.g., +0.0050%) shows the cost of holding a position. Extreme rates can indicate an overheated market.
4. **Practical strategy**:
- Look for pairs with high volume (large squares) for better execution.
- If the rate is very positive (intense green), the market may be overbought; if it is very negative (intense red), oversold.
- Example: TRBUSDT has high volume but a negative rate (-0.0050%), which could indicate a buying opportunity if you believe in a bounce.
💡 **Tip**: Combine the map with your technical analysis to confirm trends. The reference code 361339665 can give you benefits on Binance Futures! 🚀
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