This indicator was primarily designed to show the dominating influence of the underlying spot asset while trading perpetual futures , specifically on FTX.
IMPORTANT: In order for this indicator to work properly/accurately you must be observing an FTX Perpetual future chart. The indicator detects which perpetual future symbol you're observing and changes its comparative metrics accordingly. If you're observing some other chart family, it will either be inaccurate or show nothing.
In my opinion spot price and metrics are more important to observe than derivatives. If I'm looking for entries or exits I want to know that spot is leading the way, and with evidential conviction. This indicator/signal is designed to be used in context and not to be the sole metrics observed. By comparing the spot chart metrics and the respective spot chart metrics, one is able to ascertain which candles are predominantly 'lead' or dominant via spot price action or conversely derivative lead. Generally, I've found, derivative lead moves have a highly likelihood of reverting
1) Spot engulfing - When spot has exerted control successfully on the current candlestick This and other plot shapes contain plot shape sizing options and are optionally filtered via the cycled Rsi in the inputs Smaller plot shapes (auto-sized) show when the candle is spot influenced, but not engulfing .
2) Spot Candle reversals - "E" and "e" plot shapes These signals are sequential engulfing and opposing candles. "E" being when sequential engulfing candles print, "e" forms when spot candles are sequential, opposing, but not engulfing .
3) Bear / Bull Sequences: "Strong" / "Weak" plot shapes These signals are looking for a Rsi mid-line (50) 'bounce' among the last four candles on the observed time frame. For example, this will give a signal when the rsi is above, below, below, and back above the 50 on the cycled Rsi .
4) "Prox" plot shapes - "p" and "P" These plot shapes are purely based on Rsi and the confluence between two time frames. Signals occur when the low time frame and high time frame are near the 50 line of their respective Rsi but on opposing sides. There are two sets of these, comprising two different (optional) times frames each. Essentially these signals are to point out potential places of cascade in either direction. If however the market decides to "save" price, action can continue or perhaps violently push in the opposite direction. Consider them warnings to either follow or take advantage of. "P" plots indicate the lower time frame set, while "Prox" indicate the higher time frame signals. These signals can be optionally filtered by Rsi-Vwap directional bias, i.e above or below its "normal" range.
5) Exceptional spot reversals, 'X' and '+' These plots show when spot sells immediately after buying and outside of the momentum bias. i.e spot selling immediately after spot buying when Rsi > 50.
6) Bar-coloring is provided on the more important signals
7) Alerts for almost all of the aforementioned metrics are included
Thanks, DM for access
If the indicator throws an error, it's likely due to a newer ticker not being called in the script. I will update this periodically, or upon polite request.