Settings

This section is a breakdown of each part of the indicator, how the indicator setting changes affect the chart, and how to use each part of the indicator.

Collation Weighting

Collation Weighting is the option to filter out the different funding rates from different exchanges as Volume Weighted or Equally Weighted.

Collation Weighting is the option to filter out the different funding rates from different exchanges as Volume Weighted or Equally Weighted.

Collation Weighting Modes:

Volume Weighted - This is the default setting that automatically calculates the Collated Funding Rate of each exchange by giving more weight to higher trade volume platforms. This means that the exchange with the more volume will more heavily influence the Collated Funding Rate than an exchange that has less volume

Equal Weighted - This setting takes all of the exchanges in the indicator and weighs them equally when calculating the Collated Funding Rate

Smoothing

Collation Weighting is the option to filter out the different funding rates from different exchanges as Volume Weighted or Equally Weighted.

Smoothing is an adjustable filter that smooths out the Collated Funding Rate to see pivot points where funding reverses to more positive or more negative.

The scale has a default setting of 5 and can be adjusted between 1 and 10 at increments of .5.

Increasing the Smoothing will show a general high timeframe trend in the funding rates by creating a more smooth and flowing Collated Funding Rate.

Decreasing the Smoothing will show more accurate and abrupt changes in Funding Rate at the Lower timeframes and result in a more choppy and erratic Collated Funding Rate. 

Increased Smoothing is better for higher timeframes as it shows the gradual shift whereas lowered Smoothing is better for finding abrupt changes in the funding at lower timeframes signifying a potential upcoming reversal. 

Extreme Conditions Heatmap

Extreme Conditions Heatmap is a tickable Function that defaults on and shows if the market conditions are extremely Bullish or Bearish.

If the Collated Funding Rate decreases below negative .01 it means that conditions are now highly favorable for Longs and the Green background color will continue to increase in intensity as the Collated Funding Rate decreases. The further it decreases means the incentive of taking Long positions increases.

If the Collated Funding Rate increases above .01 it means that conditions are now highly favorable for Shorts and the Red background color will continue to increase in intensity as the Collated Funding Rate increases. The further it increases means the incentive of taking Short positions increases. 

Reversal Line

The Reversal Line is an aggregate line that shows the possibility of a reversal in the Collated Funding Rate. As the Reversal Line changes from moving in one direction to moving in the opposite direction it means that the Funding Rate is beginning to change and that the current Price Action move may be losing momentum. The Yellow Dots signify a Reversal Cross and will activate as signals of potential reversal when the Reversal Line coincides with a change in the Funding Rate from decreasing if it is Positive or increasing if it is Negative. 

These Reversal Crosses are Leading indicators that show a high probability of current Price Action Reversal 

Individual Funding Rates

This tickable function allows users to see Bitcoin and Ethereum Collated Funding Rates separately. This can be highly effective depending on the trading pair the user is viewing. 

The funding rate for Bitcoin is shown as an orange line and often flows with the Collated Funding Rate. 

The funding rate for Ethereum is shown as a blue line and often deviates from the Collated Funding Rate. 

This can show significant differences between Bitcoin and Ethereum as certain Cryptocurrencies may trade more similarly to Ethereum than to Bitcoin and vice versa. 

Exchanges in Collated Funding Rates

The Collated Funding Rates indicator currently pulls data for Bitcoin and Ethereum from 6 separate exchanges. These can be changed to only calculate certain data for either Bitcoin, Ethereum, Both Bitcoin, and Ethereum, or no data from that exchange.

These 6 exchanges are; Binance, Bitmex, Bybit, FTX, OKX, and Phemex.

Exchange Modes:

Both - This is the default position for all 6 exchanges used in the indicator. This means that it takes data from those 6 exchanges for both Bitcoin and Ethereum and collates them into the Funding Rate.

Indicator BTC - This will only collate data for Bitcoin from that specific.

Exchange ETH - This will only collate data for Ethereum from that specific.

Exchange OFF - Turns off that exchange and information will not be collated

This setting allows the user to choose if they want specific exchanges and specific asset funding rates to be used in the calculation. It is often more relevant to simply change all exchange settings to BTC (Bitcoin) or ETH (Ethereum) to view only that asset in the Collated Funding Rates Indicator. 

Colors

Bull Color

Default is green and allows the user to change the color to any other color.

Bear Color

Default is Red and allows the user to change the color to any other color.

Reversal Color

The default is Purple and allows the user to change the color to any other color.

Reversal Cross Color

Default is Yellow and allows the user to change the color to any other color.