[Bitcoin] Spot price vs Futures indicator by LastBattle

bitcoin btc spotprice futures future indicator spot price

A handy script to detect opportunities in the futures market during extreme movement.
During rallies, futures usually tend to be US$10 above spot price, on the other hand it can be $1 below spot price when the price starts to decline.

You could also draw a trendline to it :) measuring the amount of risk people are willing to take just to predict future prices in the rally/decline.

Credits to lowstrife for the idea, I'm just implementing it :)

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Want to use this script on a chart?

// Spot price vs futures - Tradingview.com
// @author lastbattle
study(title="spot Vs Futures", shorttitle="spot vs futures [lastbattle]")

// Inputs from user
notifyRed = input(8, title="Sell warning")  // when difference is > x
notifyGreen = input(0, title="Buy warning") // when difference is > x
timePerod = input(-1, title="Time period [-1 = go by chart]", minval=1)

// Security
src_796 = security("796:BTCUSD1W", period, close)
src_btce = security("OKCOIN:BTCCNY / FX:USDCNH", period, close) 
// Futures: OKCOIN:BTCUSD1W, 796:BTCUSD1W, OKCOIN:BTCUSD2W, OKCOIN:BTCUSD3M
// Spot: BITSTAMP:BTCUSD, BITFINEX:BTCUSD, BTCE:BTCUSD, OKCOIN:BTCCNY / FX:USDCNH, HUOBI:BTCCNY / FX:USDCNH

// Functions
isNotifyRed(difference) => difference > notifyRed
isNotifyGreen(difference) => difference < notifyGreen

// Val
difference = nz(nz(src_796[0]) - nz(src_btce[0]))

// Plots
plot(difference, style=line,  linewidth=1, color=isNotifyRed(difference) ? red : isNotifyGreen(difference) ? green : black)

// Band range
//fill(hline(-10), hline(-8), color=green, transp=50)
//fill(hline(10), hline(8), color=red, transp=50)