BTC CME Futures Divergence Tracker

20 Kas 2024

This script tracks divergences between price action and open interest for the BTC CME Futures contract (symbol "BTC1!") using the following components:

Key Features:
1. Price Analysis: Identifies lower highs in the price over a specified lookback period. Marks these points with red upward-facing triangles above the bars.

2. Open Interest Analysis: Retrieves open interest (OI) data for the BTC CME Futures contract via request.security. Detects lower highs in open interest over the same lookback period. Highlights these points with blue downward-facing triangles below the bars.

3. Divergence Detection: A divergence is identified when both price and open interest form lower highs simultaneously. Highlights such occurrences with a purple background, indicating potential bearish sentiment or weakening momentum.

4. Alerts: If divergences are detected, an alert is triggered (if enabled), notifying the trader to take action.

5. Visualization: Open interest is plotted as a blue line in a separate pane for added context. Red and blue markers highlight significant points in price and open interest trends.

Use Cases:
- Spot Weakening Trends: Divergences between price and open interest may indicate a loss of momentum or bearish sentiment, allowing traders to preemptively adjust their strategies.
- Monitor Institutional Activity: Open interest changes reflect shifts in market participation, especially in derivative markets like CME Futures.
- Set Alerts for Key Signals: With automated alerts, traders can stay informed of potential divergence signals without constant monitoring.

Customization Options:
- Lookback Period: Adjust the number of bars used to detect lower highs.
- Timeframe: Choose the timeframe for fetching open interest data (e.g., daily, hourly).
- Alert Activation: Enable or disable alerts for divergences.

This tool combines price action with open interest dynamics to provide a robust method for identifying market trends and potential reversals in BTC CME Futures.

20 Kas 2024

Sürüm Notları

This script tracks divergences between price action and open interest for the BTC CME Futures contract (symbol "BTC1!") using the following components:

Key Features:
1. Price Analysis: Identifies lower highs in the price over a specified lookback period. Marks these points with red upward-facing triangles above the bars.

2. Open Interest Analysis: Retrieves open interest (OI) data for the BTC CME Futures contract via request.security. Detects lower highs in open interest over the same lookback period. Highlights these points with blue downward-facing triangles below the bars.

3. Divergence Detection: A divergence is identified when both price and open interest form lower highs simultaneously. Highlights such occurrences with a purple background, indicating potential bearish sentiment or weakening momentum.

4. Alerts: If divergences are detected, an alert is triggered (if enabled), notifying the trader to take action.

5. Visualization: Open interest is plotted as a blue line in a separate pane for added context. Red and blue markers highlight significant points in price and open interest trends.

Use Cases:
- Spot Weakening Trends: Divergences between price and open interest may indicate a loss of momentum or bearish sentiment, allowing traders to preemptively adjust their strategies.
- Monitor Institutional Activity: Open interest changes reflect shifts in market participation, especially in derivative markets like CME Futures.
- Set Alerts for Key Signals: With automated alerts, traders can stay informed of potential divergence signals without constant monitoring.

Customization Options:
- Lookback Period: Adjust the number of bars used to detect lower highs.
- Timeframe: Choose the timeframe for fetching open interest data (e.g., daily, hourly).
- Alert Activation: Enable or disable alerts for divergences.

This tool combines price action with open interest dynamics to provide a robust method for identifying market trends and potential reversals in BTC CME Futures.