Bitcoin Forum
May 07, 2024, 08:44:37 PM *
News: Latest Bitcoin Core release: 27.0 [Torrent]
 
   Home   Help Search Login Register More  
Pages: [1]
  Print  
Author Topic: Price/Volume Excluded - Outlier Detected what does it mean. what does it mean?  (Read 54 times)
gurujangid (OP)
Newbie
*
Offline Offline

Activity: 21
Merit: 0


View Profile
April 18, 2023, 09:04:01 AM
 #1

Price/Volume Excluded - Outlier Detected what does it mean. what does it mean?
1715114677
Hero Member
*
Offline Offline

Posts: 1715114677

View Profile Personal Message (Offline)

Ignore
1715114677
Reply with quote  #2

1715114677
Report to moderator
BitcoinCleanup.com: Learn why Bitcoin isn't bad for the environment
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
1715114677
Hero Member
*
Offline Offline

Posts: 1715114677

View Profile Personal Message (Offline)

Ignore
1715114677
Reply with quote  #2

1715114677
Report to moderator
1715114677
Hero Member
*
Offline Offline

Posts: 1715114677

View Profile Personal Message (Offline)

Ignore
1715114677
Reply with quote  #2

1715114677
Report to moderator
1715114677
Hero Member
*
Offline Offline

Posts: 1715114677

View Profile Personal Message (Offline)

Ignore
1715114677
Reply with quote  #2

1715114677
Report to moderator
Rikafip
Legendary
*
Offline Offline

Activity: 1750
Merit: 5989



View Profile WWW
April 18, 2023, 09:10:52 AM
Merited by tranthidung (1)
 #2

I guess you saw it at Coinmarketcap, right? Anyway, that means price on certain exchange is much higher/lower than on the other exchanges so it has been ecluded when calculating average  and volume has been excluded too and that usually happens on dodgy exchanges.

██
██
██
██
██
██
██
██
██
██
██
██
██
... LIVECASINO.io    Play Live Games with up to 20% cashback!...██
██
██
██
██
██
██
██
██
██
██
██
██
_act_
Hero Member
*****
Offline Offline

Activity: 882
Merit: 1174



View Profile
April 18, 2023, 09:47:57 AM
 #3

Outlier detection is a means to know outliers, the outliers are then filtered out or excluded. In crypto, the outlier are incorrect or wrong trades.

Assuming the price of bitcoin is $30000

$30005 on exchange A
$30020 on exchange B
$30010 on exchange C
$25030 on exchange D

Bitcoin price on exchange D is an outlier, which can be as a result of selling pressure on exchange D

This perfect explained it: https://blog.kaiko.com/how-outlier-detection-improves-cryptocurrency-data-quality-ed9341ca3de

The incorrect price would then be filtered out or removed for bitcoin not to have incorrect or inaccurate average price.

▄▄███████▄▄
▄██████████████▄
▄██████████████████▄
▄████▀▀▀▀███▀▀▀▀█████▄
▄█████████████▄█▀████▄
███████████▄███████████
██████████▄█▀███████████
██████████▀████████████
▀█████▄█▀█████████████▀
▀████▄▄▄▄███▄▄▄▄████▀
▀██████████████████▀
▀███████████████▀
▀▀███████▀▀
.
 MΞTAWIN  THE FIRST WEB3 CASINO   
.
.. PLAY NOW ..
tranthidung
Legendary
*
Offline Offline

Activity: 2268
Merit: 4010


Farewell o_e_l_e_o


View Profile WWW
April 18, 2023, 11:31:41 AM
 #4

Anyway, that means price on certain exchange is much higher/lower than on the other exchanges so it has been ecluded when calculating average  and volume has been excluded too and that usually happens on dodgy exchanges.
It is more usually applied on exchanges with too low trading volume. They are more sensitive to price manipulations with big gaps between available buy and sell orders / walls. Big price changes on those small exchanges don't mean much for a coin because it does not reflect real market movement for that coin.

It's good to exclude those exchanges on formula for calculating average price of a coin. That will help inexperienced people avoid confusion and fomo unnecessarily.

A tip for newbies. If you want to check price of a coin, pay first attention on its price on an exchange with biggest trading volume for that coin.

▄▄███████▄▄
▄██████████████▄
▄██████████████████▄
▄████▀▀▀▀███▀▀▀▀█████▄
▄█████████████▄█▀████▄
███████████▄███████████
██████████▄█▀███████████
██████████▀████████████
▀█████▄█▀█████████████▀
▀████▄▄▄▄███▄▄▄▄████▀
▀██████████████████▀
▀███████████████▀
▀▀███████▀▀
.
 MΞTAWIN  THE FIRST WEB3 CASINO   
.
.. PLAY NOW ..
Pages: [1]
  Print  
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!