This is Bitfinex's 'BTCUSD' trading pair, normalized to match the spot prices of every other liquid BTCUSD trading pair.
Bitfinex is almost never aligned with the prices on other spot exchanges. The indicator is candlesticks with normalized price to make it viewable as how price should be, were it not for the strange price premium.
Perhaps it is because their spot exchange allows margin borrowing up to x5 on 'BTCUSD', but this is most definitely not the case, since Binance also allows the same function and does not suffer a price mismatch.
Purpose of this indicator/study: It appears to be that tether is a factor in Bitfinex's USD pairs, yet UST pairs exist. I am interested in understanding which aspect of tether would affect the market.
What's interested nowadays is the uprising of tether margined derivatives exchanges. The default funding rate is 0.0100% on nearly every exchange; a BitMEX standard. What's different from then and now is BitMEX only allows bitcoin as collateral; now the highest volume derivatives have you pay funding to short while holding stablecoins.
Further analysis must be put forward into tether's effect on the market. Not because it is easy, nor hard. But because it is fun and lets me create fun narratives.
Options to configure are the colors.
Nota bene I don't believe i am using the variance() function correctly in this scenario but it appears to support my claim of accuracy, thanks