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Topic: Price/Volume Excluded - Outlier Detected what does it mean. what does it mean? (Read 77 times)

legendary
Activity: 2310
Merit: 4085
Farewell o_e_l_e_o
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.
legendary
Activity: 1064
Merit: 1298
Lightning network is good with small amount of BTC
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.
legendary
Activity: 1722
Merit: 5937
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.
newbie
Activity: 21
Merit: 0
Price/Volume Excluded - Outlier Detected what does it mean. what does it mean?
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