This document is a reminder for things to look out for when taking a position in altcoins, and for learning pointers along the way.
Buy capitalisation should exceed sell capitalisation in as many thresholds as possible. This means that buying pressure is consistently high within the price range around the last traded price.
Buy-to-sell capitalisation ratio should be high for the lower thresholds and decrease gradually across the higher thresholds. This implies that we have a tall buy capitalisation curve against a flat sell capitalisation curve. A ratio of 1 is very low. The ratios should ideally be multiples of 10.
Buy-to-sell capitalisation ratio for the lower thresholds should be consistently high. This implies that there is upward buying pressure at the margin.
Spread should be as small as possible in percentage terms. This is good for entry. If the spread is small and there is buying pressure, it is easier for buyers to increase their bid to match sellers, thereby pushing the price up i.e. price increases are easier to catch and push.
I filtered only the altcoins that trade with a large volume. This provides liquidity and greater chance of price movement.