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).
Skrypt open-source
W zgodzie z duchem TradingView twórca tego skryptu udostępnił go jako open-source, aby użytkownicy mogli przejrzeć i zweryfikować jego działanie. Ukłony dla autora. Korzystanie jest bezpłatne, jednak ponowna publikacja kodu podlega naszym Zasadom serwisu.
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.
Skrypt open-source
W zgodzie z duchem TradingView twórca tego skryptu udostępnił go jako open-source, aby użytkownicy mogli przejrzeć i zweryfikować jego działanie. Ukłony dla autora. Korzystanie jest bezpłatne, jednak ponowna publikacja kodu podlega naszym Zasadom serwisu.
Wyłączenie odpowiedzialności
Informacje i publikacje nie stanowią i nie powinny być traktowane jako porady finansowe, inwestycyjne, tradingowe ani jakiekolwiek inne rekomendacje dostarczane lub zatwierdzone przez TradingView. Więcej informacji znajduje się w Warunkach użytkowania.