Pair trader — Indicator by IvanLabrie

I figured I'd post this.
It's an indicator that plots the spread between two selectable instruments and also each individual instrument's line chart, with a colored fill to make it more clear visually when trading ratios.
In cointegrated pairs like audcad-0.50% , you can trade the range extremes, and buy the laggard/sell the leader when overbought/sold conditions are met + distance from the 66/253 EMAs, as outlined in my AUDCAD-0.50% post. (see related ideas)
Hope you find it useful!
Cheers,
Ivan.

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ivanlabrie.substack.com/

Open-source script

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.

Disclaimer

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Want to use this script on a chart?

study("Pair trader", overlay=true)
Pair1 = security((input("FX_IDC:audusd")), input("D"), hl2)
Pair2 = security((input("FX_IDC:nzdusd")), input("D"), hl2)
PairA = plot(Pair1, color=yellow)
PairB = plot(Pair2, color=black)
fill(PairA, PairB, white, 80, "Spread")
Spread = Pair1 - Pair2
plotarrow(Spread, colorup=teal, colordown=orange, transp=80)