Perpetual mark price trading below the spot index price (basis_pct < -0.05%) COMBINED with negative funding (shorts paying carry). Two simultaneous mechanical forces drive the perp back up: (1) arbitrageurs buy the cheap perp and sell spot to close the gap; (2) shorts pay increasing carry until they cover. Strongest structural squeeze setup — basis arbitrage and funding unwind both push in the same direction. RSI 28–55 (downtrend exhausting, not yet recovered). Requires $10M+ daily volume for arbitrageur-grade liquidity. Ranked by deepest negative basis.
Quarterly futures < perp + negative funding = max pessimism across the curve. Rare but very high-conviction. Deep backwardation only triggers 2–3x per quarter and historically resolves UP within 1–3 weeks.
basis_pct < -0.3% + funding rate < -0.005 + decent volume.
| Horizon | Positional |
| Scanner timeframe | 1d |
| Confirm entry on | 4h / 1d |
| Typical hold | 1–3 weeks |
| Max hold / time-stop | Until basis flips back to contango |
The pages below are free and educational, but the actionable plan stays in the app:
65–70% over 1–3 week windows. Full breakdown in the premium app.