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Trying out k means clustering now whereby the data gets split into groups using similarity.
In this case:
it takes every extended asset and measures five parameters:
how extended the asset is, how long it’s been there, how fast it’s moving, how rare that level is, and how much volume is behind it.
Four groups emerged:
Noise spike: got there fast, already moving back. Brief touch, probably not worth trading.
Slow grind: been extended for multiple time cycles, low velocity. Potentially trapped positioning building.
Crowded position: extreme percentile rank, moderate volume. Squeeze or liquidation risk depending on direction.
Thin market — low volume relative to extension. The z-score is technically valid but needs more digging.
Detailed article to follow on the entire process.

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