Separate the board from the detector
Funding, open interest and liquidations describe the current derivatives market. A formed situation is a stricter object created when the configured flow and positioning conditions align. Read the detector type, attributed asset, direction, venue, confidence and formation time before opening the evidence.
- Funding Crowding cost, not a standalone direction signal.
- Open interest Leverage participation and change in outstanding positions.
- Formed A detector-qualified positioning situation with evidence.
Demand cross-market confirmation
Compare the Perps direction with the actual CEX movement, DEX net flow, spot chart and known wallet actor. Agreement can strengthen a thesis. Disagreement is not an error: it may expose hedging, crowded positioning or a move that has not reached spot demand.
Use forward validation as calibration
The validation panel scores matured historical matches under the active signal version. Hit rate describes that recorded sample, not the next trade. Check sample size, detector version and whether the current market regime resembles the graded observations.
Frequently asked questions
Is extreme funding enough to trade against the crowd?
No. Extreme funding can persist. Use flow, open interest change, liquidations, price structure and the formed detector evidence together.