Pair Spread Oscillator

Welcome to the Pair Spread Oscillator by Xignal Coding!

Ever wondered if you could monitor one asset against another—typically correlated—and spot opportunities?

That’s exactly what you can do with the Pair Spread Oscillator!

The Pair Spread Oscillator calculates the distance between your selected instruments and provides the mean distance and the standard deviation of your choice. This way, you can easily identify when these two instruments are moving in different directions and act before the correction occurs.

Correlation is a powerful way to beat the markets. By buying and selling two instruments that tend to move together, you minimize risk by staying hedged. Correlated instruments often correct their distance fairly quickly, which can result in a clear profit.

Inputs

• Correlated symbol name: The name of the symbol you want to compare with. The first symbol is the current chart symbol.

• Rolling window for mean/std: The period (how far back you want the indicator to look in order to calculate the mean and standard deviation).

• Std deviation multiplier: The multiplier applied to the standard deviation.