LITTLE ALPHA

Little alpha to start the morning, from when I got my start trading single names as a younger money loser.

This is specifically looking at the spot markets.

I taught a few people here this awhile ago but as a refresher especially now because of new followers and new coins - a little bit of insight with regard to crypto floats, i.e. the amount of tokens/coins available on the open market to trade.

Low float typically sets up for more volatile pairs, while the inverse often means less volatility and more liquidity.

Low float stuff can really move..

But more importantly, keep an eye on high float rotations and what they can signal. Float rotation is the measure of how many times a coin moves through its available supply in a single day.

Float rotation = trading volume/available float

Higher than 1 means the supply has turned over. What does this mean? It is possible that there are a whole new set of holders, with new expectations of the trend.

Doing multiples? Often found at the ends of high momentum moves but don't fade it until it starts to taper off and possibly move against the holder bases's higher cost basis.