A dynamic indicator tracking the price spread between spot and perpetual futures markets, revealing potential market movements and trading opportunities across different cryptocurrency trading venues.
Explore complementary indicator rolesHow it works
The indicator calculates the percentage difference between spot and perpetual futures prices for a cryptocurrency asset, creating a dynamic visual representation of price relationship. It automatically detects trading symbols and adjusts for multipliers, ensuring accurate spread calculations across different instrument types.
The spread is plotted as a histogram with color-coded indicators showing spot or perpetual market dominance. Traders can customize the visualization by applying an Exponential Moving Average (EMA) to smooth the spread data and provide a more nuanced view of price dynamics.
Why it may be useful
This signal provides traders with critical insights into market sentiment and potential price divergences between spot and futures markets. By highlighting differences in pricing across trading venues, it offers a unique perspective on market dynamics and potential arbitrage opportunities.
The indicator helps traders identify potential market movements by revealing underlying trading pressures and sentiment shifts. Its ability to track price relationships in real-time allows for more informed trading decisions and can signal emerging trends before they become apparent in standard price charts.
When to explore it
The indicator is most effective in volatile cryptocurrency markets where significant price discrepancies can emerge between spot and perpetual futures trading venues. Traders can use it to identify potential arbitrage opportunities and understand market sentiment during periods of rapid price movement.
It works best when analyzing assets with active spot and perpetual futures markets, particularly for cryptocurrencies with high trading volumes and liquidity. Traders should pay special attention to spread changes during significant market events, trend reversals, and periods of increased trading activity.
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What we’ve verified
Access, alerts and repainting behaviour have not been independently verified for this indicator. Check the creator’s current publication and settings.
General descriptions and classifications are recovered research. Verified details above identify the specific checks we have completed. Check the creator’s current publication for later changes.
