This indicator shows the premium between spot and index price, specifically on Binance USDT pairs against Binance USDT Perpetual contracts.
There are both a true and false overlay version of this indicator, this is the oscillator version.
IMPORTANT: This indicator will automatically change to the appropriate asset, but ONLY if the observed chart is a Binance PERP. For example: If my chart is on BINANCE:ETHUSDTPERP the indicator knows that you want to compare it to the BINANCE:ETHUSDT spot value. No need to manually change anything. Other pairs will be added as they are listed on Binance. I'll also be updating this indicator as I see fit.
The histogram simply plots the percent difference, either positive, "Contango", or negative, "Backwardation" between the futures price and the spot price. The colors are traditionally self explanatory, green is bullish/buy, red is bearish/sell . These values can be used real time to help in determining the predicted funding rate of the perpetual, which in turn may affect sentiment.
I've included user input capabilities so that the user can change the bracketing of which values the colors appear for the barcolors and plotshapes. These are broken up into uber backwardation, backwardation, low premium, regular premium, medium premium, high premium, and uber high premium.
Tweaks or changes may need to be made if trading altcoins for more actionable settings, as the default are designed for mainly BTC premium, but others will work well enough as is for the most part.
If the perpetual is above the spot price, funding will be positive, i.e. "normal", if spot is above the perpetual, it's usually bullish , but as always, market structure and confluence should be found for better outcomes.
An important feature I've added is the ability to change the resolution of the candle closes in the premium calculations. For example, if you want to take trades based on 5, 15, 60, etc closes, you can set the indicator to show those specific time frame premium values.
This oscillator will automatically change the candles whichever color is set to each of the relevant premium bracket values. I've also included the Binance funding periods as background colors, which may aid in confluence.
DM for access.
Thanks
Versionshinweise:
Update to newer Binance Futures trading pairs and slight change to styling of plots
Versionshinweise:
I removed some unnecessary code left over from the overlay version and made the settings a bit more concise.
Versionshinweise:
fixed support for YFII
Versionshinweise:
Added pairs and tweaked default values. Also changes to aesthetic and added moving average of premium.
Versionshinweise:
Added a slope bias for the Premium MA, changing depending on +/- slope. Respective barcoloring that includes a conditional for engulfing candles. i.e red and green barcolors are when either premium MA is decreasing and engulfing bullish, or premium MA is increasing and engulfing bearish.
Versionshinweise:
Changed to columns and changed ticker to default to "na" if appropriate pair isn't found.
Versionshinweise:
Style changes. Changed title. Average basis boolean.
Versionshinweise:
Removed unnecessary code, added a few tickers. Removed barcolors
Versionshinweise:
Updated auto ticker
Versionshinweise:
Added tickers