This article introduces the Net CEX Outflow and how to capture bullish and bearish signals via this metric.
Definition
The Net CEX Outflow equals the outflow number of a particular token from centralized exchanges (CEXs) minus the inflow amount in a given time.
[latexpage]
\[ Net\ CEX\ Outflow = CEX\ Outflow-CEX\ Inflow \]
- CEX Inflow: traders deposit/transfer tokens to CEX.
- CEX Outflow: traders withdraw tokens from CEX.
For example, suppose we detect 2,000 examplecoins withdrawals and 1,000 deposits from centralized exchanges within 24 hours. The Net CEX Outflow will be 1,000 (2,000-1,000=1,000).
How can I use it?
The Net CEX Outflow is a new and exclusive token indicator developed by Candlestick. This indicator calculates live deposits and withdrawals from 27 major centralized exchanges(CEX), indicating real-time token flow changes.
Tutorial for Beginners
This tutorial provides metric explanation and step-by-step manuals: Metric Handbook: Net CEX Outflow.
Identify bullish and bearish signals
According to monitoring the exchange inflow/outflow of tokens, traders can check deposits/withdrawals and see how it correlates with the price.
| Metric | Condition | Signal |
| Net CEX Outflow | >0 | Bullish |
A positive number indicates that traders deposit fewer tokens to centralized exchanges than withdrawals. After withdrawing, traders will probably turn to holding, staking, or farming.
| Metric | Condition | Signal |
| Net CEX Outflow | <0 | Bearish |
A negative number indicates that traders deposit more tokens to centralized exchanges than withdrawals. Increasing cryptos entering CEXs will be likely to cause selling pressure.
Alpha Trader Tips
Once you understand the basics of charts, you can trade the Net CEX Outflow indicator with CEX Flow, Top CEX Net Outflow, Top CEX Net Inflow, and Live Trading: CEX Flow Large Orders in 24h, etc.
Trading crypto flows strategies: Why do CEX Flows Matter in Crypto? How to Trade Net CEX Flows? 4 New Signals