derivativesorder-flowpositioning
Three Lenses On The Same Move
Imbalance shows displayed liquidity, which can be added or pulled in an instant. Trade flow shows what actually executed. Positioning shows how much leverage is committed behind it. A move is most trustworthy when all three agree, and most interesting when they disagree.
What Each One Adds
- CVD (cumulative volume delta): the running balance of aggressive buyers versus sellers inside the candle. Rising CVD into a falling price is absorption.
- Open interest: rising OI into a one-sided book means new positions are backing the move; falling OI means it is an unwind.
- Funding: stretched funding marks crowded leverage — the fuel for a squeeze when price turns against the crowd.
Combining Them In A Formula
Because every metric is a variable, you can require agreement directly: oiDeltaPct >= 1 && absImb >= 30 asks for new positioning into a one-sided book, and (fundingBps >= 2 && imb >= 25) flags crowded longs leaning the same way the book does — an elevated reversal risk.
The Habit That Matters
None of these is a trade by itself. Use them to narrow attention to pairs where flow, positioning, and price agree, then inspect the chart before acting.
Related reading
Keep going on positioning and flow: