Video lesson · SignalsSectors: how to read and use it
Crypto sector rotation — which crypto sector is outpacing the rest. The lesson takes 2:19; its full text is below the video.
Narrated in Russian. English subtitles are on by default.
Sectors in short
What does Sectors show?
Eight lanes under the chart, one per sector: Majors, Layer 1, Payments, Privacy, DeFi, Memes, AI & DePIN, L2 & Infra. By default each shows strength versus the market: a green bar up means the sector beat the market in that candle, a red bar down means it lagged. Labels next to the names show the result over recent candles.
How to read Sectors?
- A run of green bars in one lane means money is rotating into that sector.
- Glowing bars are the strongest deviations from the market.
- A label such as “DeFi +3.6%” shows how far the sector outran the market over the chosen number of candles.
How to use Sectors?
- Look for coins in sectors that outpace the market and be more careful with laggards.
- Switch the metric to funding or OI change to see where futures are overheated.
- Liquidations by sector show where shorts got squeezed and where longs got flushed.
What do you often see on Sectors?
- A sector that is outperforming the market often keeps doing so for a while.
- Overheated funding in a sector is a reason to be careful with longs there.
- Sectors with few coins jump around because of a single coin.
Where can I find Sectors?
In the Liqwall terminal: the Indicators button, the Signals section, Sectors. The “Open in the terminal” button on this page opens the chart with it already added.
Lesson text
0:00What Sectors is
Where does money flow inside the crypto market? Sectors shows it with eight lanes: which sector is stronger than the market right now, and which is weaker.
0:10How to add Sectors to the chart
Press the Indicators button, open the Liqwall list and type Sectors in the search. A panel with eight lanes appears under the chart: Majors, Layer 1, Payments, Privacy, DeFi, Memes, AI & DePIN and L2 & Infra.
0:31How to read Sectors
By default each lane shows the sector's strength relative to the market. A green column up means the sector did better than the market on that candle, a red one down means worse than the market. Glowing columns are the strongest deviations. The label next to the name, for example 'DeFi +3.6%', tells you how much the sector has outperformed the market over the last candles. A series of green columns in one lane means money is flowing into the sector.
1:00Sectors settings
In the Metric setting you can switch to performance, funding, change in open interest, volume, or short and long liquidations. And Label period sets over how many candles the label is calculated.
1:15An example on a real chart
An example. Daily chart, October. On October 10 and 11 the market bounces after a drop. The AI & DePIN lane is bright green two days in a row.
The sector beat the market first by 3 points, then by almost 2.5. On the bounce, money went exactly there. On October 12 the market lost almost 6% in a day, and the picture changed. Majors lit up green — 3 points better than the market, while AI & DePIN went red.
The same happened on October 8. On the drop, money hid in the largest coins. Sectors shows such flows day by day. Switch the metric to Funding and you will see where futures are overheated.
2:00What to pair Sectors with
Keep Market Breadth next to it. That way you see which sector drives market breadth. Market Mood will show the overall backdrop, and Z-Score Map — what is unusual about a coin of the chosen sector.
2:12The takeaway
Watch where the market is stronger, and where it is already overheated.
Add the indicator to the chart and look at it on your own coin.Free account — no card needed.