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Diamond Alerts

Diamond Alerts detect potential market reversal points by finding confluence between Spot and Perpetual order books. When both markets simultaneously show strong bid or ask dominance at the same depth level, a Diamond signal fires — indicating aligned institutional positioning across both venues.

How It Works

For each candle, the system:
  1. Takes the last order book snapshot from Perpetual (futures) market
  2. Takes the last order book snapshot from Spot market
  3. Computes bid/ask dominance at the configured depth band (default: 1-2.5% from price)
  4. If both markets exceed their respective thresholds → Diamond signal

Signal Types

SignalConditionMarker
Diamond Long 💎Perp bids > 40% AND Spot bids > 70%Green ◆ below candle
Diamond Short 💎Perp asks > 40% AND Spot asks > 70%Red ◆ above candle
Double Diamond Long 💎💎Both primary AND secondary bands show Long confluenceLarger green ◆ with outline
Double Diamond Short 💎💎Both primary AND secondary bands show Short confluenceLarger red ◆ with outline

Default Thresholds

ParameterDefaultDescription
Perp Bid Threshold40%Minimum bid dominance on futures
Spot Bid Threshold70%Minimum bid dominance on spot
Perp Ask Threshold40%Minimum ask dominance on futures
Spot Ask Threshold70%Minimum ask dominance on spot
Primary Band1–2.5%Main depth range for detection
Secondary Band2.5–5%Extended range for Double Diamond
Thresholds are asymmetric by design: spot markets require stronger dominance because they reflect real buying/selling intent without leverage.

Settings

ParameterDefaultDescription
Single DiamondOnEnable single diamond detection
Double DiamondOnEnable double diamond detection
Perp/Spot ThresholdsSee aboveAdjustable per-direction thresholds
Primary/Secondary Band1-2.5% / 2.5-5%Depth ranges for analysis
Long ColorGreenDiamond marker color for longs
Short ColorRedDiamond marker color for shorts
Marker Size14Size of diamond markers in pixels
Marker Opacity90%Transparency of markers
Alert RulesAll enabled (trumpet)Configurable sound alerts per signal type

Trading Applications

  • Reversal entries: Diamond Long at support = strong buy signal with cross-market confirmation
  • Confluence filter: use Diamond signals to filter entries from other indicators (RSI Divergence, FVG, etc.)
  • Double Diamond = high conviction: when both depth bands agree, the signal is stronger
  • Time filtering: works best on 1m-15m timeframes where orderbook data updates frequently

Notes

  • Only available on futures charts (binancef) — the indicator fetches spot data automatically
  • Both Spot and Perpetual order book snapshots must be available for the same candle
  • One diamond per candle maximum (deduplication prevents multiple signals on the same candle)
  • Sound alerts support repeat mode — fires on every new diamond, not just the first