1 Introduction

Many people hope to spot an altcoin before it skyrockets. While some internet celebrities will predict which coins will rise or fall, they won’t tell you how. Here, we will share a method: how to use OI and CVD indicators to find altcoins that are likely to skyrocket.

2. Basic concepts of OI and CVD

OI (Open Interest): The number of open contracts. An increase in OI indicates that funds are entering the market, while a decrease in OI indicates that funds are leaving. CVD (Cumulative Volume Delta): the difference between buying and selling volume. In trending markets, CVD enters positive or negative values; in non-trending markets, CVD fluctuates around zero.

3. Combined analysis of OI and CVD

The first situation: OI rises and CVD rises. When long positions are opened, the market is bullish. The second situation: OI increases and CVD decreases. When a short position is opened, the market is bearish. The third situation: OI decreases and CVD decreases. Long positions are closed and there are fewer buyers. The fourth situation: OI decreases and CVD increases. Short positions are closed and there are fewer sellers.

4. Specific operation steps

Step 1: Select the market to view, for example, select the Small Caps option. Step 2: View the OI Changes chart and filter out the tokens whose OI changes are positive and in an upward trend. Step 3: View the OI-Normalized CVD chart and analyze the balance of power between the long and short sides of the market.

5. Case analysis

Taking the RLC token as an example, its OI is rising but CVD is falling, indicating that there are many sellers and it may fall. Taking the ARPA token as an example, both its OI and CVD are rising, suggesting a possible slight rise.

6. Summary and reminders

OI and CVD are only reference indicators, and investment requires comprehensive consideration of multiple factors. Take-profit and stop-loss points should be set when doing short-term trading. The content of the article is for learning and communication only and does not constitute investment advice.

A method that a novice will know at a glance