Currently it works with BTCUSDT.P but soon I'll be adding support for more assets.
It flags areas of interest like:
- Too many longs, too many shorts in the market
- Open interest too high or too low
It accepts an external signal as a source in which case filters can be applied to the original signal. For example the external signal might trigger and plot a 1 when RSI break below 70. By connecting such signal with this oscillator you'll be able to only pass-through the ones that occur when any of the areas of interest mentioned above are also valid.
If both filter are applied it acts as an OR. For example, if too many longs and too many shorts are active, it will pass through the signal in either condition.
The results of the original signal filtered is printed to be able to later use it in any external backtester strategy that accepts external sources too.
If external source signal is disabled it will trigger any time the combined filters are returning true.
Open interest and the ratio of longs/shorts is considered too high whenever the stochastic RSI calculation of the OI or ratio LS reaches a level above 80 and too low when below 20
The ratio of long/shorts is calculated by dividing the ratio of longs vs shorts from BTCUSDLONGS and BTCUSDSHORTS
You can use this indicator to observe the market and also as a filter for your signals.
You can experiment with only entering shorts when there's a lot of longs and the OI has just dropped.
Or how about filtering your longs to only when most shorts just got liquidated.
You signals could get an extra edge from becoming aware of what's going on with the rest of the players 🦜
Add the chart to a low timeframe but display higher timeframe OI and LS data is TOP alpha.
And for those of you who are having issues with loading the chart remember to use the perpetual binance symbol BTCUSDT.P
There's no open interest in spot and many exchanges don't publish OI data either !!!
To use this alert make sure you select "Any alert() function call" instead of the custom signal.
Custom signal offers your specific combination according to what you specify in the indicator settings.
New option to switch between stochastic RSI and RSI for visualising OI, ratio LS and price.
RSI tends to be more picky so you can use it as second validation that OI or ratio LS is actually in the "opportunity" range.