Hi guys,
I've found a metric that almost no one is using and it's called the Premium Index.
This metric calculates the difference between the Bitcoin contract price and a volume-weighted spot price.
Normally when the spot price is higher than the contract price it's bullish, and when lower bearish.
But there is another way to use this metric, and that is when there is a certain extreme in the charts.
It always appears whenever the price of Bitcoin creates a reversal.
It's explained here with a picture with price example:
https://whaleportal.com/learn/premium-index/Does anyone of you use this indicator already for your Bitcoin trading?
First, My advice to you is that you should regard things like this, they don't often work, they will only raise your hope and disappoint you later. And as per your question, No, I have not heard of "premium index" before, yet I am not new to what you posted, it might only be that the name was coined differently which often happens in the trading environment. I know of a market index, price index, power index and volatility index, and I am sure that yours is from one of these or combination of them.
