RT-Coinbase vs Binance Premium

The Coinbase vs Binance Premium Indicator is a simple context tool used to track when Coinbase (CB) spot markets are trading at a premium or discount relative to Binance spot markets. It measures the spread between CB USD and Binance USDT spot order books for a chosen asset and visualizes when one venue is consistently leading the other.

Introduction
In challenging crypto markets it can be useful to know which exchange is "pulling" price. This tool focuses on the relative premium between Coinbase and Binance. When the premium is positive, Coinbase is trading higher than Binance. When it is negative, Binance is trading higher than Coinbase. Over the past few years we have often observed the following behaviors:

• Bullish legs in price frequently line up with periods where Coinbase trades at a premium.
  
• Bearish legs in price frequently line up with periods where Binance trades at a premium.
  

The goal of this indicator is not to predict price on its own, but to show when that cross-exchange pressure is building so traders can add it to their existing analysis.

How It Works
The indicator computes a premium value by comparing CB USD spot data with Binance USDT spot data for the selected symbol. The raw difference between the two feeds is noisy, so the script applies a smoothing filter to make the flows easier to read without hiding major shifts.

• Positive premium values highlight periods where Coinbase is trading above Binance (CB premium).
  
• Negative premium values highlight periods where Binance is trading above Coinbase (Binance premium).
  
• Color coding is used so that extended periods of CB premium or Binance premium stand out as regimes instead of isolated ticks.
  

This gives a timeline of which venue has been in control and when that control flipped.
Sequences
One of the key use cases is to study "sequences" of premium behavior around larger trend moves. Traders can look for:

• Extended CB premium sequences that line up with strong bullish impulses or sustained uptrends.
  
• Extended Binance premium sequences that line up with sharp selloffs or sustained downtrends.
  
• Transitions where CB premium slowly fades and is replaced by Binance premium, or vice versa, which can warn of a potential change in market character.
  

These sequences do not guarantee any specific outcome, but they often provide useful context on whether a move is being driven more by USD spot flows on Coinbase or by USDT-denominated flows on Binance.


Settings
This tool has two main inputs that allow traders to tune how the premium is displayed:

• Smoothness Filter - The raw spread between Binance and CB is very erratic. This setting controls the level of smoothing applied to the premium series. Increasing the value reduces short-term noise and makes longer premium regimes easier to see. Decreasing it makes the indicator more reactive to intraday shifts.
  
• Currency - The indicator compares Binance USDT vs CB USD for the selected asset, but you can choose which symbol to track. The default is Bitcoin, but you can switch to other supported assets such as SOL, ETH, XRP, or DOGE depending on your focus.
  

Traders can adjust these settings by timeframe. For example, a stronger Smoothness Filter on the 4h or 1D can help reveal higher-timeframe regimes, while a lighter filter on lower timeframes will highlight shorter-lived dislocations.

What Makes This Tool Different
There are many ways to look at trend or momentum on a single chart, but this indicator is focused on the relationship between two major spot venues:

• It tracks the relative premium between Coinbase USD and Binance USDT rather than only looking at one exchange feed.
  
• It uses a configurable smoothing filter to turn noisy tick-level differences into readable premium regimes.
  
• It supports multiple symbols from the same interface so traders can study how different assets behave across exchanges.
  
• It is designed to be used alongside price, volume, and other structure tools to explain why certain moves are stronger, weaker, or more "forced" than they may look at first glance.
  

This makes the Coinbase vs Binance Premium Indicator a specialized context tool for understanding cross-exchange pressure rather than a generic trend or oscillator overlay.
Important Note
This indicator is intended to provide additional context around cross-exchange flows and premium behavior. It is not a standalone signal generator and should always be used together with your own analysis, testing, and risk management. Cross-exchange relationships can change over time, and historical patterns do not guarantee future results.

🐋 Tight lines and happy trading!