This indicator shows the % premium between spot and index price of any two assets.
There are both a true and false overlay version of this indicator, this is the oscillator version.
IMPORTANT: This oscillator is different from the other related oscillator, because this does not automatically change the assets for premiums, you will have to MANUALLY type in the tickers for the comparison. i.e BINANCE:ETHUSDTPERP/BINANCE:ETHUSDT. This allows you to play potential correlations between assets via premium/funding, regardless of exchange. The underlying asset should to be in the first text field, otherwise the readings will be reversed. Assets with large price differences will not have actionable readings on the oscillator.
The histogram simply plots the percent difference, either positive, "Contango", or negative, "Backwardation" between any two assets. 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 derivative is slightly above the spot price, funding is likely to be positive, i.e. "normal", if spot is above the derivative, 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
There are both a true and false overlay version of this indicator, this is the oscillator version.
IMPORTANT: This oscillator is different from the other related oscillator, because this does not automatically change the assets for premiums, you will have to MANUALLY type in the tickers for the comparison. i.e BINANCE:ETHUSDTPERP/BINANCE:ETHUSDT. This allows you to play potential correlations between assets via premium/funding, regardless of exchange. The underlying asset should to be in the first text field, otherwise the readings will be reversed. Assets with large price differences will not have actionable readings on the oscillator.
The histogram simply plots the percent difference, either positive, "Contango", or negative, "Backwardation" between any two assets. 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 derivative is slightly above the spot price, funding is likely to be positive, i.e. "normal", if spot is above the derivative, 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
Release Notes:
Symbol input