Bitcoin cme gap indicators, BINANCE vs CME exchanges premium gap

# CME BTC Premium Indicator Documentation BTC1!

## 1. Overview

Indicator Name: CME BTC Premium
Platform: TradingView (Pine Script v6)
Type: Premium / Gap Analysis
Purpose:

* Visualize the CME BTC futures premium/discount relative to Binance BTCUSDT spot price.
* Detect gap-up or gap-down events on the daily chart.
* Assess short-term market sentiment and potential volatility through price discrepancies.


## 2. Key Features

1. CME Premium Calculation

* Formula:
CME Premium(%) = ((CME Price - Binance Price) / Binance Price) X 100

* Positive premium: CME futures are higher than spot → Color: Blue
* Negative premium: CME futures are lower than spot → Color: Purple

2. Premium Visualization Options

* `Column` (default)
* `Line`

3. Daily Gap Detection (Daily Chart Only)

* Gap Up: CME open > previous high × 1.0001 (≥ 0.01%)
* Gap Down: CME open < previous low × 0.9999 (≤ 0.01%)
* Visualization:

* Bar Color:

* Gap Up → Yellow (semi-transparent)
* Gap Down → Blue (semi-transparent)
* Background Color:

* Gap Up → Yellow (semi-transparent)
* Gap Down → Blue (semi-transparent)

4. Label Display

* If `Show CME Label` is enabled, the last bar displays a premium percentage label.
* Label color matches premium color; text color: Black.
* Style: `style_label_upper_left`, Size: `small`.



## 3. User Inputs

| Option Name | Description | Type / Default |
| -------------- | ------------------------- | --------------------------------------- |
| Show CME Label | Display CME premium label | Boolean / true |
| CME Plot Type | CME premium chart style | String / Column (Options: Column, Line) |



## 4. Data Sources

| Data Item | Symbol | Description |
| ------------- | ---------------- | ----------------------------- |
| Binance Price | BINANCE\:BTCUSDT | Spot BTC price |
| CME Price | CME\:BTC1! | CME BTC futures closing price |
| CME Open | CME\:BTC1! | CME BTC futures open price |
| CME Low | CME\:BTC1! | CME BTC futures low price |
| CME High | CME\:BTC1! | CME BTC futures high price |



## 5. Chart Display

1. Premium Column/Line

* Displays the CME premium percentage in real-time.
* Color: Premium ≥ 0 → Blue, Premium < 0 → Purple

2. Zero Line

* Indicates CME futures are at parity with spot for quick visual reference.

3. Gap Highlight

* Applied only on daily charts.
* Gap-up or gap-down is highlighted using bar and background colors.

4. Label

* Shows the latest CME premium percentage for quick monitoring.



## 6. Use Cases

* Analyze spot-futures premium to gauge CME market sentiment.
* Identify short-term volatility and potential trend reversals through daily gaps.
* Combine premium and gap analysis to support altcoin trend analysis and position strategy.



## 7. Limitations

* This indicator does not provide investment advice or trading recommendations; it is for informational purposes only.
* Data delays, API restrictions, or exchange differences may result in calculation discrepancies.
* Gap detection is meaningful only on daily charts; other timeframes may not provide valid signals.