This is a heatmap that shows derivatives sentiment for some of the most prominent coins in crypto.
Content
Coins included:
BTC
ETH
LTC
DOT
LINK
YFI
The indicator takes the Binance USDT perpetual swaps of these coins and compares them to their respective spot indices. Binance is the exchange of choice because their perps have the highest volume in the market.
For the spot indices I've used the indices created by Bitmex. These are very intricate and weighted indices with compositions of the most important and trustworthy spot markets. For more information check the Bitmex website.
The heatmap shows red coloring if the perp is trading above spot (bearish). It shows green coloring if the perp is trading below spot (bullish).
The lighter the color the less wide the gap is between perps & spot. The darker (brighter) the coloring the more extreme the difference.
Trading
It's quite simple. When you see a lot of green, preferably dark green, you should have a bullish bias because it means that perps are oversold or that spot is bidding hard. Vice versa a lot of red should give a bearish bias.
It's very practical for a quick sentiment check.
This indicator is free so you can just add it to your favorites.
Shout-out to zzzcrypto123 for inspiring me.
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Added a few extra features.
You can now manually choose the thresholds for the coloring and you can also choose which perp you want to compare the weighted spot indices. Check out the settings and have fun testing.