BitMEX Funding Visual by Mcrypt28

This is a modified script originating from user m59 that better visually represents the BitMEX funding trend over time. Green indicates the funding is positive (longs pay shorts every 8 hours to maintain their position) and red indicates the funding is negative (shorts pay longs). The darker the color means the higher the rate. The unproven theory is that the funding helps to identify what retail investors are doing at a given time. Thus, in downtrends as the negative funding is drying up, a low may be near. In uptrends, as the funding remains negative, retail is generally bearish and continues to sell as institutional investors likely are absorbing. Vice versa for when the funding is positive. In any market in general, money flows from the many to the few. That means whatever retail is doing is generally the opposite of what will be the actual outcome. One more modifier to the m59 script is that volume is factored into the calculation which will impact which threshold (opacity on the chart) it falls within.

If you'd like to chart the BitMEX funding yourself, I'd recommend checking out the source from m59's indicator as that is more likely to stay up to date if BitMEX makes any changes to the way funding is calculated. The source if this is protected for that reason.