Investmenthero77

WillSpread Index

Description Source: https://www.instaforex.com/forex_indicators/will_spread.php

The technical indicator Will-Spread was developed by Larry Williams and described in his book Long-Term Secrets to Short-Term Trading. Will-Spread is one of the strongest financial indicators, which measures the flow of price between the primary market and a secondary market. The purpose of this comparison is to highlight signals for opening/closing positions of a financial asset through market signals that have influence on this particular asset. Once the Will Spread turns positive, look for the next bar to be above bar when Will spread turned positive to get long.

Indicator Use

Trading use The main method of using Will-Spread is watching the way it crossing the zero line. If the indicator crosses the zero line upward, rising trend is likely to continue. When the indicator falls below the zero line, there is an obvious downtrend. The author offered to use the indicator in trading from the standpoint of a filter: when Will-Spread crosses the zero line, a trader should wait for the formation of the bar that follows after the signal. In case the new bar generates a high/low above/below the previous one, a trader should open position. It is not recommended to open position if the bar does not form a new high/low.

The spread (A/B *100) takes two underlyings, get the exponential average creating exponential period (5) and subtract from another exponential period (20). The example he gives is that bonds move stocks, so we take the S&P and bonds. Get a will spread of SPY & TLT .
Open-source Skript

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.

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