This is a script that shows the contango between spot and prices of Bitcoin to identify overbought and oversold conditions. Contango and backwardation are terms used to define the structure of the forward curve. When a market is in contango, the forward price of a contract is higher than the spot price. Conversely, when a market is in backwardation, the forward price of the contract is lower than the spot price.
The aggregate prices on top exchanges are taken and then averaged to obtain a Spot Average and a Average. The script then plots ( Average/Spot Average) - 1 to illustrate the percent difference (contango) between spot and prices of Bitcoin .
When in contango, Bitcoin may be overbought.
When in backwardation, Bitcoin may be oversold.
False = Not Repainting = Value for the current bar is not repainted, but all past values are offset by 1 bar.
True = Repainting = Value for the current bar is repainted, but all past values are correct and not offset by 1 bar.
In both cases, all of the historical values are correct, it is just a matter of whether you prefer the current bar to be realistically painted and the historical bars offset by 1, or the current bar to be repainted and the historical data to match their respective price bars.
As explained by TradingView,`f_security()` is for coders who want to offer their users a repainting/no-repainting version of the HTF data.
Also repaired the three paired exchanges so they make more sense:
Coinbase/Deribit --> Coinbase/Bitmex
Bitfinex/Bitmex --> Bitfinex/Bybit
Bitstamp/Bybit --> Bitstamp/Deribit
Removed the option to show VWAP.