derivatives pressure leverage mapper

The problem

Traders often struggle to distinguish between organic price trends and volatile, leverage-induced spikes. Relying solely on price action leads to entering positions at exhaustion points or getting caught in cascading liquidations.

What it does

• Analyzes Cumulative Volume Delta (CVD) to identify aggressive vs. passive market participants.
• Correlates Open Interest (OI) changes with price moves to detect new position entry vs. forced covering.
• Evaluates Funding Rates to flag overextended leverage and squeeze risks.
• Compares spot market participation against derivative volume to gauge move sustainability.
• Classifies market states into real support, leverage-driven, or distribution categories.

Why this beats prompting it yourself

This skill applies a strict classification matrix that prevents emotional bias in market analysis. It forces a systematic check of five distinct data layers, ensuring you never overlook funding extremes or CVD divergences that a generic prompt might miss.

Use cases

• Identify if a breakout is backed by spot buying or just a short squeeze.
• Spot potential long squeeze setups when funding rates become extremely positive.
• Determine if a price drop is healthy distribution or temporary long liquidations.
• Assess trend conviction during high-volatility events like news releases.

Known limitations

Requires manual input of derivatives data points as it does not have a live exchange API connection. Accuracy decreases if spot volume data is unavailable.