This indicator shows the premium, or basis, between FTX USD pairs and FTX USD Perpetual contracts.
IMPORTANT: This indicator will automatically change to the appropriate asset comparison, but ONLY if the observed chart is an FTX PERP. For example: If my chart is on FTX:ETHPERP the indicator "knows" that you want to compare it to the FTX:ETHUSD spot value. No need to manually change anything. Other pairs will be added as they are listed on FTX. I'll also be updating this indicator as I see fit. If you get an error on the indicator it's either because FTX doesn't have a spot asset available to compare it to or I haven't hard coded it into the script.
The histogram simply plots the percent difference, either positive, "Contango", or negative, "Backwardation" between the futures price and the spot price. 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 extreme backwardation, backwardation, low premium, regular premium, medium premium, high premium, and extreme high premium.
Tweaks or changes may need to be made if trading altcoins for more actionable color settings, as the default are designed for mainly BTC premium, but others will work well enough as is for the most part.
If the perpetual is above the spot price, funding will likely be positive, i.e. "normal", if spot is above the perpetual, 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 a moving average and barcolor that, if activated will show the change between increasing or decreasing basis relative to the previous candle if in its respective direction.
DM for access.
Thanks
IMPORTANT: This indicator will automatically change to the appropriate asset comparison, but ONLY if the observed chart is an FTX PERP. For example: If my chart is on FTX:ETHPERP the indicator "knows" that you want to compare it to the FTX:ETHUSD spot value. No need to manually change anything. Other pairs will be added as they are listed on FTX. I'll also be updating this indicator as I see fit. If you get an error on the indicator it's either because FTX doesn't have a spot asset available to compare it to or I haven't hard coded it into the script.
The histogram simply plots the percent difference, either positive, "Contango", or negative, "Backwardation" between the futures price and the spot price. 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 extreme backwardation, backwardation, low premium, regular premium, medium premium, high premium, and extreme high premium.
Tweaks or changes may need to be made if trading altcoins for more actionable color settings, as the default are designed for mainly BTC premium, but others will work well enough as is for the most part.
If the perpetual is above the spot price, funding will likely be positive, i.e. "normal", if spot is above the perpetual, 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 a moving average and barcolor that, if activated will show the change between increasing or decreasing basis relative to the previous candle if in its respective direction.
DM for access.
Thanks