Let's talk about contracts. First of all, if there is a buy order, there must be a sell order; this is how contracts function normally. Based on 0.005%, unless one side is significantly stronger than the other, it will show positive or negative.
My personal indicator is to pay attention when a contract shows 0.07 or -0.07 or higher; this means the coin is likely to experience significant rises or falls. Of course, this is my personal opinion, and everyone's indicators vary. I'm sharing my perspective to illustrate! Furthermore, when a trading platform's contract holdings exceed its market value, this coin is likely to be manipulated, with a high probability of rising, because the profits from rising are greater than those from falling. Upward movement has limitless potential, while downward movement is limited and can be easily targeted!
Today, there was a coin, parti, that reached the indicator. I bought it yesterday and sold it this morning, because the major players were strong, along with some minor players and retail investors shorting, so I made a quick profit. Luck was also on my side, earning a small gain.
Now, let me give three examples of altcoins I previously shorted, which I have been shorting for a long time.
First is TST. I emphasized this coin many times back in April; it's a strong controlled coin. When I looked at the contract holdings today, they immediately caught up with the market value; just Binance alone has half of it. This is quite scary. Don't be fooled by the current slow decline; a major movement will happen later. Currently, from the contract perspective, I believe the bears are greater than the bulls, although I might be wrong. $MUBARAK $TUT $PARTI
The second is Mubarak. The contract is normal, but in the short term, I believe the bullish strength is greater than the bearish. From the market analysis, it seems someone is supporting the bottom. I don't recommend shorting, nor am I suggesting you to bottom-fish in the spot market, because it's short-term, so I’m unsure when the main players will dump.
The third is TST, which recently had major fluctuations. Interestingly, the bulls and bears have been vying for dominance; it just depends on which side is stronger. I will add this coin to my observation list and will not operate on it for now.
What I've mentioned above is just my opinion, feel free to take it as a novel, don’t take it too seriously. At least it's better than many paid groups, after all, I don't make trades!