Just as my phone vibrated, the exchange pushed a red dot: the funding rate soared to an exaggerated level.

To be honest, at such times it's easiest to get itchy and want to take the opposite side, and a thought might pop up: "Don't go where the crowd is"...
But I now prefer to dodge the volatility first, at least wait for that wave of emotion to catch its breath.

I'm watching large transfers not to guess the top or bottom, but more to see when everyone starts to get collectively excited.
Recently, someone was complaining that on-chain data tools/tag systems are lagging, and might even be manipulated, I agree: when the tags change color, I chase after them, it's often already the tail end of others' net closing.

So extreme rates = I first act as an observer, set a reminder, and hold back.
If I really want to take the opposite side, I can, but I have to accept that I might just be there to take the hit, otherwise just pass by casually, for now, that's it.