Derivative Effective Position [Auto+Binance] [Moto]

Apr 13, 2022

Hello traders,

This indicator shows the effective/successful influence of perpetual contracts opening or closing via their respective side. i.e longs closing, longs, opening, shorts closing, or shorts opening. Realistically, we want to be considering which side of perpetual contracts are having a successful effect on the market to potentially avoid counter-trend trading, or to take advantage of it.

IMPORTANT: In order for this indicator to work properly/accurately you must be observing a Binance Perpetual future chart. The indicator detects which perpetual future symbol you're observing/trading and changes its comparative metrics accordingly. If you're observing some other chart, it will either be inaccurate or default to BTC open interest metrics. Avoid this error.

Depending on which direction price moves respective to which direction open interest moves, one can determine which side of the contracts are being opened or closed.

Due to Bitcoin having relative correlation to the other digital assets, it's own independent signals have been includes.

Signals include the four obvious participants for the observed asset, longs opening and closing for BTC, and important potential reversals for both the long side and short side of the observed chart, i.e longs opening into longs closing or shorts closing into shorts opening .

https://www.tradingview.com/x/4eO7LRYx/

https://www.tradingview.com/x/Od3XgTp4/

https://www.tradingview.com/x/mGPQxqjz/

Filters for these signals include a standard RSI 50 midline bias, and a setting to filter out sequential signals, respective of observed asset or Bitcoin.

Alerts have not yet been included but will be included in an update.

Apr 14, 2022

Release Notes

Simplified plotshapes. Added code to reduce simultaneous signals, prioritizing strength. Removed residual code.

Apr 15, 2022

Release Notes

Simplification of plotshapes. Added transparency settings for plotshapes, and color settings. RSI filtering separation. Added checker to ensure both data sets are viable on observed asset. If you're not on the proper chart, no data will show.

Apr 28, 2022

Release Notes

Added tickers. Cleaned code and added options, i.e filters etc.

May 1, 2022

Release Notes

Important update and further description:
It's important to note that these metrics respective to OI are not always 100% precise rather a reasonable "effective" approximation, because it's quite difficult or impossible to determine the delta positions between longs and shorts on a per candle basis (+intrabar), unless the exchange supplies each piece of data separately. This approximation becomes more accurate/reliable with higher time frames, as divergences (via discrepancies in liquidity) will be far less likely to play out over price action. An example of what this indicator will miss: More shorts opening than longs opening but price still increases.

Here is, as of posting, the full signal/symbol legend for the indicator:

Notes on the RSI, engulfing, and sequential filters:
I've found Rsi to be a great filter for signals, as it prevents me from taking counter-momentum entries. However, there are signals, the "Exceptions" that ignore the Rsi filter, and represent early or counter-momentum indication. i.e longs opening + engulfing when Rsi is less 50. There's more than one Rsi filter in this indicator to give the user specific vision of signals. Engulfing candles are important, in my opinion to view, because it's evidence of strength, and on higher time frames often a range breakout. Filter for sequential signals assists to cut noise and hone a clean and actionable chart. Please head the warning respective to the sequential filter.

O = "Long Open" - Long contracts are opening
C = "Long Close" - Long contracts are closing
SO = "Short Close" - Short contracts are opening
SC = Short Open" - Short contracts are closing

Reversals:
Reversals occur when the directional bias flips immediately between two candles. For example, if longs start closing immediately after longs start opening, that's grounds for potential reversal. The same theory is applied for the short side: shorts opening immediately after shorts are closing.

∆ [Green]= Longs closing in previous candle into longs opening in current candle, but non-engulfing. The current candle is smaller than the previous.
∇ [Red]= Longs closing in previous candle into longs closing in current candle, but non-engulfing
▼ [Red]= Longs closing in previous candle into longs opening in current candle, AND engulfing. The current candle is bigger than the previous.
▲ [Green]= Longs opening in previous candle into longs closing in current candle, AND engulfing.
* These symbols were hard coded into the script via 'test' to avoid overlapping symbols and to aid other related indicators to work in unison.

∆ [Aqua] = "Non-Engulfing Bull - Short Reversal" -Shorts opening in the previous candle into shorts closing in the current candle, but non-engulfing.
∇ [Yellow] = "Non-Engulfing Bear - Short Reversal" - Shorts closing in the previous candle into shorts opening in the current candle, but non-engulfing.
E∆ [Aqua] = "Short Bull Reversal" - Shorts opening in the previous candle into shorts closing in the current candle AND engulfing.
E∇ [Yellow] = "Short Bear Reversal" - Shorts closing in the previous candle into shorts opening in the current candle AND engulfing.
* These signals have their own respective Rsi filter

OI Confluence:
Above and below the candles these signals represent price movement in confluence with volume and OI.
S [Green below] = "Rising Strong" - Price, Vol, and OI increase, within momentum
S [Red above] = "Declining Strong" - Price, Vol, and OI decrease, within momentum
ES [Below]= "Exceptionally Rising Strong" - Price, Vol, and OI increase, counter momentum
ES [Above]= "Exceptionally Declining Strong" -Price, Vol, and OI decrease, counter momentum
* This OI confluence comes with its own separate engulfing filter
These signals will change color depending on whether the engulfing filter is applied.
These signals will, currently, supersede O, and O
Larger TriangleUp [Green] = "Mega Bull" - OI decrease and price decrease in previous candle to OI increase and price increase and engulfing in the current candle.
Larger TriangleDown [Red] = "Mega Bear" - OI increase and price increase in the previous candle to OI decrease and price decrease and engulfing in the current candle.

BTC Related Signals:
Due to correlation with BTC, It's worth while to have these signals optional in the settings. Note: The script will prioritize the current assets signals and replace what would be BTC signals.
₿ [Green, below] = "BTC Long Open" - Longs opening on the BINANCE:BTCUSDTPERP
₿ [Red, above] = "BTC Long Close" - Longs closing
* Non-sequential filter available

Notes on color styling:
Due to a limitation from TradingView and the number of plot shapes of this indicator the colors in the styling panel aren't visible. In the near future I'll be either reducing signals, or finding another workaround to make the styling visible.

Opacity Settings:
In further effort to avoid a noisy or incomprehensible chart, the main plot shapes for some signals have been turned completely transparent, which can be made opaque by inputting preferred values in the input.

This indicator has be reconfigured to show no data if the user is not on a Binance perp chart.

This indicator shows a lot of things, it's likely I will either have missed some smaller detail or I will find ways of improving visualization in future revisions, as I will be continuing to work on this.

May 2, 2022

Release Notes

Removed unnecessary code. Added alerts for major signals.

May 4, 2022

Release Notes

Edit to a type in previous description:
▲ = Longs closing in previous candle into longs opening in current candle, AND engulfing. The current candle is bigger than the previous.
▼ = Longs opening in previous candle into longs closing in current candle, AND engulfing.

May 21, 2022

Release Notes

Updated tickers

Oct 20, 2022

Release Notes

Ticker update

Oct 31, 2022

Release Notes

Removed extraneous signals and filtering. Text and plotshapes solely focused on changes in OI and price with direction. Included bar coloring option

Nov 8, 2022

Release Notes

Updated tickers. Bars color by default. Color change

Nov 29, 2022

Release Notes

Separated out the text/plotshapes. Separated opacity between shape and text for each side. Removed resolution option.

Jan 14, 2023

Release Notes

Added alerts. simplified cannibalism.

Jan 17, 2023

Release Notes

Refactored to reduce size. Perpetual checker, Ticker, and OI ternary functions implemented.

Feb 9, 2023

Release Notes

Edited booleans for cannibal visibility + boxes. Added perpetual checker to regular boxes.

Apr 1, 2023

Release Notes

Fixed ticker references