One Way To Use Stocktwits’ Social Data Tools

Have you ever heard the phrase ‘volume precedes price’? It’s an old-school technical analysis 101 maxim. For example, if an instrument is in a downtrend but then you start to see volume tick up, the theory is that price will follow the volume. 🧑‍🎓

It’s what technical analysts call a leading indicator—a heads-up or a warning that the probability of change is high and that it might happen soon. Analysts and traders might apply that principle (volume precedes price) to the Stocktwits Social Data. 

Here’s one way an analyst might use the Stocktwits Social Data:

  1. Identify things that are overbought or oversold – at extremes. 
  2. Ensure it’s active and liquid, meaning people trade it. 
  3. Look at the Stocktwits Social Data to spot divergences – for example, price action is bearish, but volume and sentiment are ticking higher. 
  4. Work it into their regular analysis. 

$RNDR is a good example from today, posted this morning:


Like everything else in crypto, RNDR collapsed yesterday. But price action started to pop up a bit and recover. The message volume shifted to normal, and the sentiment over the past 24 hours was bearish. 

RNDR Chart And Social Data

Using these tools, the StockTwits Social Data can be leading indicators, more so than the old-school volume-precedes-price approach—again, that’s just one way.

It’s like the Stocktwits Social Data leads the actual traded volume or supersedes it somehow—but it’s up to interpretation.

And please, for the love of Oreo cookies and milk, don’t take our word for it just because you read it in possibly the finest and best cryptocurrency newsletter in existence.

So do your due diligence before you nose dive into using a new tool or approach. 🧠

More in   Crypto

View All

Seriously, SHIB People, Are You Ok?

Look at the 1-minute chart below from yesterday’s intraday price action on $SHIB. 🤯

It was one of the craziest swings of all the major market cap memecoins by far, just an insane move. And how did the Stocktwits SHIB stream react? Like you’d expect any high class degen to react: Unf*cking fazed.

Read It

Technically Speaking – February 26, 2024

Bitcoin hit $54,000, bla bla bla, and Ethereum hit $3,200. Yes, that’s awesome, but if you’re like me, I want to know what hasn’t moved yet or is about to break out or, even more importantly, what might be hitting some profit-taking/reversal zones. 💡

Also, if you want to learn, check out our Ichimoku 101 article here, or watch this instructional video here

Read It

News In Three Sentences – February 28, 2024

Great Zeus’s Beard That’s A Lot: BTC ETF trading volume spiked over $7.5 billion, more than double its previous record. 😱 WatcherGuru has more

BlackRock Turns Bitcoin ETFs into Its Own Personal Money Printer: BlackRock’s ($BLK) massive $520 million infusion into $BTC ETFs, combined with Europe’s unrelenting buying spree and a nifty GBP arbitrage opportunity on $COIN, propelled Bitcoin past the $60,000 mark despite expectations of a pause. Short-sellers everywhere are now questioning their life decisions. 🚀    Read more from TrustNodes

Read It

Technically Speaking – March 8, 2024

I’ll keep the details short and simple here because time is running out, and if I’m not done on time for pizza night with the kids, my wife will be very mad. 🍕

I almost wrote she’d kill me, but if I did that, there’d probably be a SWAT team and an army of social workers making sure I’m ok.

Read It