What it does
Spread plots the arithmetic difference between the chart symbol and a second symbol you choose: price A minus price B. It converts two charts into a single line that shows how the gap between them evolves. It is the basic tool for pairs analysis, inter-market comparison and calendar/instrument spreads.
Typeoscillatorseparate pane
How to add it
Click Indicators (ƒx) in the header.
Search “Spread” and click the result.
Hover its legend row and click the gear to open settings.
How traders use it
- A rising spread means the chart symbol is gaining on the comparison symbol; a falling spread means it is losing ground.
- For correlated pairs, extreme deviations of the spread from its historical average set up mean-reversion trades: short the rich leg, long the cheap leg.
- Trend and support/resistance analysis works directly on the spread line; a spread breakout can be traded even when neither leg has broken out.
- Add a moving average or Bollinger Bands to the spread to define 'stretched' objectively before fading it.
- Check the pair's correlation still holds before assuming reversion; a structural break in the relationship invalidates the trade.
Inputs
| Input | Type | Default | Range / Options |
|---|---|---|---|
| Symbol | symbol | — | — |
Plots & styling
| Plot | Style | Default color |
|---|---|---|
| Plot | line | #2196F3 |
Every plot's color, line width and visibility can be changed on the Style tab. Precision (default 2 decimals), price-scale labels and status-line values are configurable at the bottom of the Style tab.
Reference levels
| Level | Value |
|---|---|
| Zero | 0 |
Level values, colors and line styles are editable in settings.
Tips
- The pane keeps its height in saved layouts, so size it once and it survives reloads.
- Resize the pane by dragging its divider; collapse it from the legend row when you need the space back.
- Use Add to favorites in the legend menu; starred studies surface at the top of the picker.
- This indicator accepts another symbol — leave it empty to use the chart's own symbol.
Watch out for
- Raw price differences are scale-sensitive: two instruments at very different price levels produce spreads dominated by the larger one, so a ratio is often more meaningful.
- Spreads between fundamentally diverging instruments can trend indefinitely; 'stretched' can always get more stretched.