OPEN-SOURCE SCRIPT
Coinbase Premium(/binance)
Script Overview
This indicator is designed to measure the price gap (premium) between Coinbase (BTC/USD) and Binance (BTC/USDT). Since Coinbase is often viewed as a proxy for institutional demand in the US, this "premium" helps traders identify whether buying pressure is coming from US-based institutions or global retail markets.
Key Components & Logic
1. Data Integration (Multi-Exchange)
The script uses the request.security() function, which is the standard in Pine Script v5 for fetching data from different symbols or exchanges:
Binance BTCUSDT: Represents the global retail market price.
Coinbase BTCUSD: Represents the US institutional market price.
Bitfinex USTUSD: Used as a "Stablecoin Peg" adjustment to ensure the comparison between USD and USDT is mathematically accurate.
2. Calculation Logic
Price Normalization: It multiplies the Binance BTC price by the USDT/USD exchange rate (binance_btc * usdt_peg). This ensures we are comparing "apples to apples" (USD vs. USD).
Premium Calculation: * USD Difference: Simply subtracts the adjusted Binance price from the Coinbase price.
Percentage (%) Premium: Calculates the percentage gap. Following your original code's logic, it uses the 2-bar delay ([2]) to smooth out minor data lag or specific historical points.
3. Visual Elements (UI)
The script is optimized for Dark Mode users with a "White" theme:
Histogram (Percent): Displays the percentage premium. A value above 0 indicates Coinbase is more expensive than Binance (Bullish signal for US demand).
Columns (USD): Shows the raw dollar difference with slight transparency (60%) to keep the chart clean.
Zero Line: A solid white line at the 0 level to clearly distinguish between a "Premium" (positive) and a "Discount" (negative).
This indicator is designed to measure the price gap (premium) between Coinbase (BTC/USD) and Binance (BTC/USDT). Since Coinbase is often viewed as a proxy for institutional demand in the US, this "premium" helps traders identify whether buying pressure is coming from US-based institutions or global retail markets.
Key Components & Logic
1. Data Integration (Multi-Exchange)
The script uses the request.security() function, which is the standard in Pine Script v5 for fetching data from different symbols or exchanges:
Binance BTCUSDT: Represents the global retail market price.
Coinbase BTCUSD: Represents the US institutional market price.
Bitfinex USTUSD: Used as a "Stablecoin Peg" adjustment to ensure the comparison between USD and USDT is mathematically accurate.
2. Calculation Logic
Price Normalization: It multiplies the Binance BTC price by the USDT/USD exchange rate (binance_btc * usdt_peg). This ensures we are comparing "apples to apples" (USD vs. USD).
Premium Calculation: * USD Difference: Simply subtracts the adjusted Binance price from the Coinbase price.
Percentage (%) Premium: Calculates the percentage gap. Following your original code's logic, it uses the 2-bar delay ([2]) to smooth out minor data lag or specific historical points.
3. Visual Elements (UI)
The script is optimized for Dark Mode users with a "White" theme:
Histogram (Percent): Displays the percentage premium. A value above 0 indicates Coinbase is more expensive than Binance (Bullish signal for US demand).
Columns (USD): Shows the raw dollar difference with slight transparency (60%) to keep the chart clean.
Zero Line: A solid white line at the 0 level to clearly distinguish between a "Premium" (positive) and a "Discount" (negative).
Skrip sumber terbuka
Dalam semangat TradingView sebenar, pencipta skrip ini telah menjadikannya sumber terbuka, jadi pedagang boleh menilai dan mengesahkan kefungsiannya. Terima kasih kepada penulis! Walaupuan anda boleh menggunakan secara percuma, ingat bahawa penerbitan semula kod ini tertakluk kepada Peraturan Dalaman.
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.
Skrip sumber terbuka
Dalam semangat TradingView sebenar, pencipta skrip ini telah menjadikannya sumber terbuka, jadi pedagang boleh menilai dan mengesahkan kefungsiannya. Terima kasih kepada penulis! Walaupuan anda boleh menggunakan secara percuma, ingat bahawa penerbitan semula kod ini tertakluk kepada Peraturan Dalaman.
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.