BTC: Open Interest

This indicator tracks the 7-day (default) percentage change in open interest (OI), providing insights into market participation trends. It includes customizable periods and colors, allowing traders to adjust settings for better visualization.

Open interest (OI) is the total number of active contracts (futures or options) that haven’t been closed or settled. It represents the total open positions in the market.
Thus when OI increases, more traders are entering new positions, signaling growing market interest. Conversely, when OI decreases, positions are being closed, suggesting lower trader participation or liquidation.

Attributes & Features:
Open Interest Percentage Change – Measures the 7-day % change in open interest to track market participation.
Customizable Calculation Period – Users can adjust the period (default: 7 days) for more flexible analysis.
Adjustable Colors – Allows modification of colors for better visualization.
Trend Identification – Highlights rising vs. falling open interest trends.
Works Across Assets – Can be used for cryptos, stocks, and futures with open interest data.
Overlay or Separate Panel – Can be plotted on price chart or as a separate indicator.


How It Works:
Fetches Open Interest Data – Retrieves open interest values for each day for USD, USDT, and USDC Bitcoin Perpetual Derivitives.
Calculates Percentage Change – Compares current open interest to its value X days ago (Default = 7 days).
Standard Deviation – Applies standard deviation ranging from -2 to +2 deviations to identify large shifts in OI.
Visual Alerts – Can highlight extreme increases or decreases signaling potential market shifts.

NOTE: THE INDICATOR DATA ONLY GOES BACK TO START OF 2022