Chapter 3 CloudCraft proprietary tool
What is Crowding Lights®?
Crowding risk indicator: risk scale from 1 to 5
What is Crowding Lights®?
Crowding Lights® is a proprietary Cloud Craft indicator. It analyzes density by tracking price movements and input/output flows in real time. It shows in real time when activity has begun on a coin, that it should be watched, and which direction the density is flowing. It is especially effective for altcoins.
How does Crowding Lights® appear in the CloudCraft terminal?
Crowding Lights is shown in real time on the chart panel. You can visually track which direction the density is flowing and how strong it is. Updated in real time.
How to use Crowding Lights®?
Contra-Crowd: When the crowding risk level rises, look for trade opportunities in the opposite direction of the crowd. When density shifts excessively in one direction, the probability of a reverse move increases.
Confirmation: High Crowding risk + Phantom Lights alert = if both indicators point in the same direction, reversal probability can be taken more seriously.
Confirmation: High Crowding risk + Phantom Lights alert = if both indicators point in the same direction, reversal probability can be taken more seriously.
Key points
A rising crowding risk level does not mean immediate reversal. The market can remain crowded for a long time. This alert means "be cautious now." It must be confirmed with price action and order flow.
Pro tip
Evaluating the Crowding indicator together with Funding Rate and Long/Short Ratio is the best way to understand how "tense" the market is. If all three indicators point in the same direction, reversal risk is extremely high.
The internal calculation methods of CloudCraft proprietary tools are trade secrets and are not disclosed here; this page explains what the tool measures and how it is used. This content is for education and analysis only, not investment advice. Market tools offer probability and context, not certainty; the decision is the user responsibility.