Enhanced Spread Monitor

vor 3 Tagen

This indicator helps you monitor market spreads and identify potential trading opportunities by analyzing spread behavior, market liquidity, and volatility across multiple exchanges. It's particularly useful for crypto traders looking for market inefficiencies or arbitrage opportunities.

Visuals:
-Blue Line: The real-time spread, enhanced by market conditions
-Orange Line: A smoothed threshold that helps identify unusual spread levels
-Red Background: Appears when the spread exceeds the threshold, signaling a potential opportunity

Key Features:

Multi-Exchange Monitoring
-Can track up to 3 different exchanges/markets
-Option to view individual or aggregated spreads
-Useful for spotting arbitrage opportunities between venues

Enhanced Spread Detection
-Automatically amplifies the spread when liquidity is low
-Increases sensitivity during volatile periods
-Helps identify true trading costs beyond the simple bid-ask spread

How to Configure:

Symbol Settings
-Choose up to three markets to monitor
-Enable "Aggregate Multiple Symbols" to see a volume-weighted combined view

Market Impact Factor (Depth Settings)
-Default: 0.5
-Higher values (>1.0): More sensitive to low liquidity
-Lower values (<0.5): More conservative spread estimation

Volatility Settings
-Short-term Volatility: React to immediate market changes
-Long-term Volatility: Establish baseline market behavior
-Recommended: Keep long-term 3-5x larger than short-term

Threshold Settings
-Historical Lookback: How much history to consider (500 bars recommended)
-Threshold Smoothing: Stability of the threshold line (14 default)
-Std Dev Multiplier: How extreme spreads need to be for signals (2.0 default)

Trading Application:
-Watch for red background highlighting - these are potential opportunities

Consider trading when:
-Spread exceeds threshold significantly
-Multiple exchanges show similar patterns
-Market conditions suggest the spread is due to real inefficiencies

Be cautious when:
-High volatility is the main driver of spread increases
-Only one exchange shows unusual spread behavior
-Market depth is very low (might be hard to execute)

Risk Management:
-Large spreads during low liquidity might indicate difficult trading conditions
-Verify actual executable prices before trading
-Consider exchange fees and withdrawal costs for arbitrage