BTC Spot vs Perpetual CVD Divergence

This indicator:
Data Sources:

• Uses Binance BTC/USDT for spot market
  
• Uses Binance BTC/USD perpetual (USD-M) for futures market
  
• Both symbols should be available on TradingView
  

CVD Approximation:
Since true CVD requires order book data (not fully available in Pine Script), we approximate it by:

• Multiplying volume by price direction (+1 for up bars, -1 for down bars)
  
• Summing over the specified lookback period
  

Normalization:

• Normalizes both CVD values to a -1 to 1 range for fair comparison
  
• This accounts for different volume scales between spot and perpetual markets
  

Divergence Calculation:

• Subtracts normalized perpetual CVD from spot CVD
  
• Positive values indicate spot market is more bullish than perpetual
  
• Negative values indicate perpetual market is more bullish than spot
  

Visualization:

• Red line: Main divergence indicator
  
• Green line: Normalized spot CVD
  
• Blue line: Normalized perpetual CVD
  
• Green background: Strong positive divergence (>0.5)
  
• Red background: Strong negative divergence (<-0.5)
  
• Gray dashed line at zero
  

Limitations:
This is an approximation since true CVD requires buy/sell volume separation, which isn't directly available
Results may vary depending on timeframe and lookback period
Assumes volume data reliability from both markets