One of my recent wins came from tracking the funding rate. The market was overly bearish on a particular coin — everyone was shorting, and the funding rate was deeply negative. That told me one thing: short squeeze potential. I looked for confirmation on the chart and found a bullish divergence forming. I waited for the first strong green candle and entered with a tight stop. As predicted, shorts started covering, and the price squeezed upward hard. I exited at the previous resistance level, locking in a strong profit. This trade taught me how useful funding rates can be as a sentiment indicator. When the majority of traders lean too far in one direction, the opposite move often follows. Now I check funding rates before every trade — especially on highly shorted altcoins. It's like having insight into the market’s emotional state. Combining sentiment tools with technical setups adds an extra edge. Trading is part analysis, part psychology — and funding rates reveal both.
