Spread Oscillator from the Difference Between Two EMA Series

Summary

The Spread Oscillator compares two selected symbols by first forming a normalized price ratio: the first symbol’s close divided by the second symbol’s close, scaled by one hundred. It then computes exponential moving averages of that ratio using configurable fast and slow periods. The oscillator value is the slow EMA minus the fast EMA.

This produces a time series describing the difference between the two smoothed ratio measures. Users can configure the symbol pair and both averaging periods. The document defines the calculation but does not explain how to interpret positive or negative readings, provide entry or exit rules, or show performance evidence. It also does not discuss symbol compatibility, data alignment, or risk management, so the indicator alone does not specify a trading strategy.

Key ideas

• The indicator forms a ratio from the closing prices of two selected symbols and scales it by one hundred.
• It calculates fast and slow exponential moving averages of that ratio.
• The oscillator is the slow moving average minus the fast moving average.
• The symbol pair and both moving-average periods are configurable.
• The description supplies no signal thresholds, trading rules, or performance evaluation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.