All the brothers trading contracts know that this is not about luck; it’s about information asymmetry and a sense of timing. If you want to survive longer and earn steadily, relying solely on intuition won't work; data tools are your left and right arms. Today, I recommend a magical tool—Coinglass, specifically designed for contract players. Pay close attention to the following three functions:
Need to pay attention to: Open Interest
This indicator is super critical; it tells you how much capital in the market is still open. An increase in open interest indicates that the market is adding bets, and the trend might be heating up; a decrease suggests that capital is withdrawing, and the main players might be fleeing, so don't rush in too aggressively. For example, if BTC price is moving sideways, but OI suddenly spikes, it indicates that everyone is holding back for a big move; it's best to be cautious at this time and not end up being the one who takes the fall.
Need to pay attention to: Liquidation Data
Have you ever experienced that painful moment when you just opened a position and it immediately goes against you? By looking at liquidation data, you can find out who got liquidated yesterday, how much, and whether it was the bulls or the bears? Did the market just go through an extreme liquidation? If a lot of bears got liquidated and the market doesn’t drop, it indicates that the bulls are stronger, so consider riding the trend; conversely, if the bulls just got wiped out, don’t rush to catch the bottom, as it can easily turn into a 'relay to take losses'.
Need to pay attention to: Long/Short Ratio
The Long/Short Ratio actually shows whether people are currently more bullish or bearish. But remember one thing: retail investors are always in the majority. So if you see the Long/Short Ratio heavily skewed towards long, the market might need to 'pin' and clean up; if it's heavily bearish, it might instead trigger a short squeeze. Using the Long/Short Ratio well means you can sense the taste of a 'counterattack' in advance.
To summarize, Coinglass is not about predicting the market; it's about not doing foolish things and not standing on the wrong side at the wrong time. Whether you can make money from contracts relies not only on skills but also on the ability to judge information. Those who know how to use tools are already ahead of the majority.