Pair Spread Indicator

The Pairs Spread indicator has been developed for the popular strategy known as pairs trading, spread trading, or statistical arbitrage.

This indicator measures the distance (spread) between prices of two directly (positively) correlated instruments and shows the result as a curve with standard deviations.

So, traders can quickly identify when the instruments are too far apart and use this information for trade opportunities. 

How to Use the Pair Spread Indicator?

Best results are attained when the trade is opened somewhere between the second and the third standard deviation.

  • The indicator is between 2nd and 3rd standard deviations - SELL Pair 1, BUY Pair 2.
  • The indicator is between -2nd and -3rd standard deviations - BUY Pair 1, SELL Pair 2.

Suitable Currency Pairs

  • EURUSD vs GBPUSD
  • EURUSD vs NZDUSD
  • USDCHF vs USDJPY
  • AUDUSD vs GBPUSD
  • AUDUSD vs EURUSD

Main Features

  • The indicator shows the deviations from the normal state.
  • A simple comparison of actual correlation between two currency pairs.
  • The second and third standard deviations area for entering the trades.
  • Works on every timeframe (M1, M5, M15, M30, H1, H4, D1, W1, MN).
  • The indicator is non-repainting.
  • Available for MT4 and MT5.
  • High-speed calculation.
  • Ready for backtesting (customizable look-back period).
  • Customizable parameters (Colors, Line thickness, Deviations period...).
  • The indicator works with prefixes and suffixes of symbols as well (EURUSD.m, EURUSD-pro...).

Input Parameters

  • Pair_1 - Name of the first pair.
  • Pair_2 - Name of the second pair.
  • Bars_Ago - Number of the bars displayed by the indicator. In case the Bars_Ago parameter is set to 0, all bars in the chart have been displayed.
  • Dev_Period - Period of the deviation for calculation.
  • Text_Size - Size of the other currency labels.
  • Line_Thickness - Thickness of the chart lines.
  • Line_Color - Color of the Pairs Spread indicator line.

Output Parameters

  • Spread - Spread output values.

Screenshots

Demo Video

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Purchase

All our products are available in the MQL5 market.

MetaTrader 4 version

Buy Pairs Spread indicator for MT4

MetaTrader 5 version

Buy Pairs Spread indicator for MT5

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