RT-Bitcoin Funding Candles

Introduction
The RT-Bitcoin Funding Candles indicator and the RT-Bitcoin Spot vs Perp Funding indicator are designed to visualize Bitcoin funding conditions using estimated spot versus perpetual futures pricing. Together, they help traders see how funding has been behaving and where leveraged traders may be leaning over time. These two indicators are meant to be used together, and this write-up will cover how to utilize both tools.

The RT-Bitcoin Funding Candles indicator converts estimated funding information into custom candle colors on the chart. The RT-Bitcoin Spot vs Perp Funding indicator shows the same concept in a separate panel, similar to how many traders use RSI or other oscillators.

Both tools are intended as context layers around funding behavior, not standalone signal generators.RT-Bitcoin Funding Candles Indicator
The RT-Bitcoin Funding Candles indicator uses estimated differences between Bitcoin spot prices and perpetual futures prices to color each candle based on whether conditions are more aligned with bullish leveraged positioning or bearish spot-driven pressure.

In general terms:

• When perpetual futures trade at a premium to spot for extended periods, conditions are often associated with more aggressive leveraged long positioning.
  
• When perpetual futures trade at a discount to spot, conditions can indicate stress on leveraged longs or periods where spot demand is stronger relative to perp.

The indicator converts this estimated spot versus perp relationship into a color scale on the candles:

Bullish / Leveraged Funding Scale
Dark Blue → Blue → Light Blue → White
Bearish / Spot Funding Scale
Dark Red → Red → Orange → YellowThis allows traders to look at a BTC chart and quickly see whether estimated funding has been skewed toward leveraged longs or more spot-driven pressure during each candle.

Displaying Funding Candles On Top Of Price
By default, some chart layouts may draw the RT-Bitcoin Funding Candles indicator behind the main price candles. To make the funding candles fully visible:

• Right click on the RT-Bitcoin Funding Candles indicator on your chart.
  
• Select Visual Order.
  
• Choose Bring to Front.

Once this is done, the funding candles will sit on top of or replace the normal bar colors, making the funding bias easier to see at a glance.

RT-Bitcoin Funding Candles Settings
The RT-Bitcoin Funding Candles indicator includes a small set of tuning options so traders can control which exchange data is used and how sensitive the color transitions are.
Key settings include:

• Exchange Selection
  Allows the trader to select which funding source is used for the calculation. Common options include: Binance, Deribit and Bybit. This lets traders align the indicator with the exchange they track most closely.
  
  
• Smoothness Adjuster
  Controls how sensitive the candle colors are to short-term changes in the spot versus perp relationship. Lower smoothing values will make colors react more quickly, but can be noisier. Higher smoothing values will make colors change less often, focusing on more persistent funding conditions.

Customizing Funding Candle Colors
Traders who prefer different color palettes can customize the funding candle colors in the Style tab of the indicator settings.

• Open the RT-Bitcoin Funding Candles indicator settings.
  
• Go to the Style tab.
  
• Adjust the colors and opacities for each bullish and bearish funding color step.
  

This allows traders to keep the same logic while matching the visuals to their own chart themes.

RT-Bitcoin Spot vs Perp Funding Indicator
The RT-Bitcoin Spot vs Perp Funding indicator presents the same core concept in a separate, oscillator-style panel, similar to how traders might use RSI or other momentum tools.

Instead of recoloring the main candles, it plots lines that reflect how strong the estimated spot versus perp funding relationship has been over time. This can make it easier to compare current conditions to previous periods and to see when funding has moved into more extreme zones.RT-Bitcoin Spot vs Perp Funding Settings
The RT-Bitcoin Spot vs Perp Funding indicator provides a set of inputs so traders can tune how the estimated funding lines behave visually:

Premium Sensitivity
Controls how sensitive the plotted lines are to changes in the underlying estimated spot versus perp relationship. Higher sensitivity will cause the lines to move more aggressively. Lower sensitivity will smooth smaller fluctuations and focus on larger swings.

Premium Smoother
Applies additional smoothing to the raw estimated funding data. Because the underlying data can be noisy in its raw form, this setting helps reduce erratic spikes so that major shifts in funding are easier to read.

Exchange Toggles
Allows the trader to choose which exchanges are displayed in the panel. For example:

• Show or hide Binance funding lines.
  
• Show or hide Deribit funding lines.
  
• Show or hide Bybit funding lines.

If multiple exchanges are enabled, multiple lines can be displayed for comparison.

Line Colors
Line colors and thickness can be adjusted in the Style tab. This makes it possible to:

• Assign different colors to each exchange.
  
• Emphasize key lines while de-emphasizing others.

How Traders Commonly Use These Tools
The RT-Bitcoin Funding Candles and the RT-Bitcoin Spot vs Perp Funding indicators are typically used as part of a broader BTC workflow rather than on their own. Common usage patterns include:

• Context Around Extremes
  Comparing current estimated funding conditions to past extremes to see when funding has become unusually one-sided relative to history.
  
  
• Trend And Funding Alignment
  Studying whether strong trends are being supported by consistent estimated leveraged funding, or whether price is moving against the prevailing estimated funding bias.
  
  
• Multi Tool Confluence
  Combining estimated funding candles or the spot versus perp panel with other tools such as RT-Main Indicator, Machine Learning Reversion Bands, or pivots to build a more complete picture of market conditions.
  
  
• Exchange Comparison
  Using the Spot vs Perp Funding panel to compare how different exchanges are pricing estimated funding at the same time and to see when one venue becomes an outlier.

In all cases, these indicators are intended to provide an additional layer of information about how spot and perp markets have been behaving. They are not designed to be automatic entry or exit systems.

Important Note
The RT-Bitcoin Funding Candles and the RT-Bitcoin Spot vs Perp Funding indicators use chart-based calculations and publicly available pricing to approximate funding behavior. They do not access private exchange order books or actual liquidation feeds, do not reveal real trader positions, and cannot guarantee that any specific funding condition will lead to a particular price move.

These tools are intended to provide additional context around funding, positioning, and potential areas of interest. They are not standalone signal generators and should always be used together with your own analysis, testing, and risk management. Historical funding patterns or past interactions with these indicators do not guarantee future results.

🐋 Tight lines and happy trading!