OPEN-SOURCE SCRIPT
Updated Bitcoin Spot Premium
Plots the difference between the Bitcoin Spot price and the average of 7 Futures prices.
The idea being that Spot leads the market, and when Spot is priced significantly higher than Futures, price should increase. And vice-versa.
Possible uses:
If you find a strategy that works well with this indicator, I'd love to know. Enjoy!
The idea being that Spot leads the market, and when Spot is priced significantly higher than Futures, price should increase. And vice-versa.
Possible uses:
- Sharp changes could indicate a reversal is coming
- A consistently large premium can be used as additional validation of trend continuation
- Divergences may help identify trend exhaustion
If you find a strategy that works well with this indicator, I'd love to know. Enjoy!
Release Notes
Changed the "short title" for the indicator and updated the following Perp symbols (some name changes, some exchanges no longer exist):BYBIT:BTCUSD --> BYBIT:BTCUSDT.P
BITMEX:XBTUSD --> BITMEX:XBTUSDT.P
FTX:BTCUSD --> OKX:BTCUSDT.P
PHEMEX:BTCUSD --> PHEMEX:BTCUSDT.P
BINANCE:BTCUSDTPERP --> BINANCE:BTCUSDT.P
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 publication is governed by House rules. You can favorite it to use it on a chart.
Want to use this script on a chart?
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