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.
Read response strength before confidence
The Response strength ladder compares the futures positions added after a tracked deposit with the deposit size. The multiple is matched position notional divided by tracked inflow. Grey marks the detector's formation zone, while the colored observation shows how far the accepted setup moved beyond that minimum. This is evidence of an unusual positioning response, not proof that one wallet opened those positions.
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 historical matches after their outcome window has passed. Hit rate describes that recorded sample, not the next trade. Check the sample size, the signal version shown in the panel 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.