🐋Trades Analysis

Trades Analysis is one of ErkeScan's most powerful features, providing unprecedented visibility into high-value market activity and institutional trading patterns. This guide will help you understand how to use Trades Analysis to identify market trends, spot whale activity, and make more informed trading decisions.

What Is Trades Analysis?

Trades Analysis is a comprehensive suite of tools that monitors and analyzes significant trading activity across cryptocurrency markets. Unlike basic volume indicators, Trades Analysis provides detailed insights into:

• Large-value transactions from major market participants (whales)

• The balance between long and short positions

• Market sentiment through trading activity

This deeper level of analysis helps you understand what the "smart money" is doing, allowing you to align your trading with institutional movements rather than fighting against them.

Key Components of Trades Analysis

Whale Trade Monitoring

The Whale Trade Monitor tracks large-value transactions that can significantly impact market direction:

• Real-time Tracking: See significant trades as they happen

• Historical Analysis: Review past whale activity to identify patterns

• Size Filtering: Focus on transactions above specific value thresholds

• Direction Analysis: Distinguish between buying and selling pressure

Long/Short Ratio Analysis

The Long/Short Ratio provides insights into market sentiment through the balance of long versus short positions:

• Current Ratio: See the present balance between longs and shorts

• Historical Comparison: Compare current ratios to historical averages

• Trend Analysis: Track how the ratio changes over time

• Asset Comparison: Compare ratios between different cryptocurrencies

How to Use Trades Analysis

Reading Whale Trade Data

The Whale Trade Monitor displays large transactions in a table format with these key columns:

• Timestamp: When the transaction occurred

• Asset: The cryptocurrency being traded

• Size: The transaction value (in USD and native tokens)

• Direction: Buy or Sell

• Price Impact: How much the transaction affected the market price

• Exchange: Where the transaction took place

Example Interpretation: A series of large buy transactions in a short time period often indicates institutional accumulation, which may precede price increases. Conversely, multiple large sell transactions may indicate distribution before price decreases.

Analyzing Long/Short Ratios

The Long/Short Ratio is displayed as a numerical value and visualized on a chart:

• Ratio > 1.0: More long positions than short positions (bullish sentiment)

• Ratio < 1.0: More short positions than long positions (bearish sentiment)

• Ratio = 1.0: Equal long and short positions (neutral sentiment)

Example Interpretation: A Long/Short Ratio of 2.0 means there are twice as many long positions as short positions, indicating bullish sentiment. However, extreme ratios (very high or very low) can sometimes indicate potential reversals as the market becomes overcrowded in one direction.

Common Questions About Trades Analysis

How often is the trade data updated?

Trade data is updated in real-time, allowing you to see the most recent high-value trades as they occur. Each trade entry includes a timestamp showing when the activity took place.

Are all large transactions significant?

Not all large transactions have the same impact. Consider these factors:

• Transaction context (part of a pattern or isolated)

• Market conditions when the transaction occurs

• Known wallet associations (if available)

• Corresponding price action

Next Steps

Now that you understand how to use Trades Analysis, explore these related section:

• Trading Strategies & Applications - Discover comprehensive trading strategies using ErkeScan's tools