BitMEX Funding Visual by Mcrypt28This is a modified script originating from user m59 that better visually represents the BitMEX funding trend over time. Green indicates the funding is positive (longs pay shorts every 8 hours to maintain their position) and red indicates the funding is negative (shorts pay longs). The darker the color means the higher the rate. The unproven theory is that the funding helps to identify what retail investors are doing at a given time. Thus, in downtrends as the negative funding is drying up, a low may be near. In uptrends, as the funding remains negative, retail is generally bearish and continues to sell as institutional investors likely are absorbing. Vice versa for when the funding is positive. In any market in general, money flows from the many to the few. That means whatever retail is doing is generally the opposite of what will be the actual outcome. One more modifier to the m59 script is that volume is factored into the calculation which will impact which threshold (opacity on the chart) it falls within.
If you'd like to chart the BitMEX funding yourself, I'd recommend checking out the source from m59's indicator as that is more likely to stay up to date if BitMEX makes any changes to the way funding is calculated. The source if this is protected for that reason.
Bitmexfunding
Bitmex Funding Killzones v3 [MaliciousUpload]Originally built off of "Oscarvs: BITCOIN KILL ZONES v2" indicator, updated to now highlight a different time period based event.
1. The indicator should not be affected by what time zone you are in, it will show true Funding periods by default.
2. This needs to be used on the 1min time frame to be used to its full extent
3. The more the funding fee is the more likely you are to have price get manipulated by people looking to act on its benefit
4. This indicator will work only for XBTUSD and ETHUSD perpetual contract symbols as they are the only two ones with funding...
My opinion: Funding is literally the exchanges insurance policy, they are "the house", they will always win.
With that in mind you can trade "with the house" in this regard, getting onto the side that will benefit from exponentially large funding rebates.
Do you ever ask how those "whales" got to be rich? It was by saving every penny they could while trading.
Funding gives people the option to jump out right before, avoiding the fee and then immediately enter in after at no loss (assuming limit orders ofc).
If that doesn't make sense to you i cant help, sorry. :pray: :pray: :pray:
"Build up period" = Usually when we see people start getting into positions to try and get the rebate from funding and/or people getting out of positions that would be negatively impacted by funding
"Entry window" = If you are trying to scalp the "rebound" in price which should happen right after funding happens from people re-entering their position which previously exited just to avoid the funding fee or from all of the people who entered just to get the funding rebate
"Take profit period" = The time period I have determined to be most influential, very volatile IF the funding has an effect on price
Hit me up on Discord if you are an **experienced** trader that takes trading seriously.
MaliciousUpload#1637
