中文版本：
<aside> 🏄 Sector rotation can be used to observe the dynamics of crypto sector performances. ‼️ Risk warning: any data/indicator has its advantages, disadvantages, and limitations. Please make sure to understand them carefully, crypto trading contains substantial risk and is not for every investor. DYOR.
Table of Contents-
</aside>
Sector Rotation Overview
**Sector Rotation** (SR) provides a quick overview of the performance of various cryptocurrency sectors over different time periods. It presents sector performance statistics across different horizons, allowing traders to quickly assess how each sector is performing.
The Sector Rotation overview displays all the sectors on the vertical axis and different time horizons (ranging from 1 hour to 90 days) on the horizontal axis. If a sector has positive price change during a particular time, it is shown in green; if it has negative price change, it is shown in red. The intensity of the color indicates the magnitude of the change. By clicking on a sector label, users can further explore the performance of tokens within that sector.
Sector rotation exhibits the dynamic changes of trends in sector shifts, effectively identifying which sectors are currently stronger and which are weaker. It also allows traders to observe and record the patterns of sector rotation. This data is particularly useful for short-term trading strategies.
💡 In general, except during explosive market phases, most market movements are driven by sector rotation. Sector rotation is caused by the change of market positions, fund movements, and narratives. By understanding the direction and patterns of sector rotation, traders can better seize trading opportunities!
🙋🏻♂️ Here is some examples:
Sector Rotation Overview
The data of Sector Rotation is calculated based on the performance from the present moment back to the specified time period. For example, 24 hours represents the performance of the sector over the past 24 hours. Sector rotation can be categorized into three: long-term (30 days, 90 days), medium-term (3 days, 7 days), and short-term (1 hour, 8 hours, 24 hours). Traders can choose the observation period based on their trading cycles.
If a sector shows more green, it indicates better performance. For short-term trading, if a sector has more green in the short-term period, it indicates relative strength and may be suitable for long strategy. Conversely, if a sector has more red in the short-term period, it indicates relative weakness and may be suitable for short.
There are two methods to use Sector Rotation:
Sector Rotation Overview- DOT Ecosystem, Identity
Sector Rotation Overview- Oracle, SOL Ecosystem, Meme
Some examples above, we can observe that the Oracle, SOL Ecosystem, DOT Ecosystem and Identity sectors perform relatively well in the short-term period. In the medium-term period, the Identity, DOT Ecosystem, SOL Ecosystem, and Meme sectors perform better. Notably, the Identity sector shows strength across all time periods.