Using Heikin Ashi candles for a spread is a weird idea, because of technical limitations.
If you open a 15 min chart and you load the synchronized data for two instruments on this chart to calculate the spread, you can only calculate spread values for the open and the close. The intrabar high and low of the spread cannot be determined, as the high and low of the two bar series are - unlike open and close - not synchronized.
So you cannot create a candle to represent the spread, unlike you rely on intrabar data. For example I could use a 1 min bar series of both instruments to calculate the highest and lowest difference of the closes over a 15 min period and then chart it as the high and low of a 15 min candle. But this is a more compex task than to calculate a simple spread.
As we do not get any highs and lows, we can neither chart the spread as conventional candles nor as Heikin Ashin candles. If you want to extract the trend from the spread, here is a suggestion:
Chart the ratio or the spread on a separate panel. Then apply bollinger bands to the spread and play a little bit with the settings. The chart below shows the Universal Bollinger Indicator applied to the YM 03-12 / ES 03-12 ratio.
You will notice that the Bollinger Bands can produce conforming or conflicting trend signals. Have not yet finished the spread and ratio indicators, but you can take any of those to play around.
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There is a new addition to the NT7 indicator section, its called "spread candlesticks".
It plots SPread with candlesticks Author mentioned something about removing synch code to accommodate the OHLC values that are required for candles/haiken.
I'm interested in using this new indicator as soon as I can figure out how to leave out the main data series and plot the spread of two alternative instruments.
Question is, how will exclusion of the synch code in this version of Spread to accommodate the OHLC values affect the output value/ output integrity (could it produce dud reading when it couldnt sync)?
Using original Spread3 as input for another indicator (fisher transform) gives me problems when I try to access diff TFs in MarketAnalyzer couple other indicators that access non-defult TF dataseries.
Any other more stable alternatives to get spread calculations for use as input?
Last edited by Alex91320; February 27th, 2012 at 02:33 PM.
Not sure, whether that indicator works correctly, could you post it here? If you try to use candles for a spread, this basically requires intra-bar information, as you cannot calculate high and low of the spread from high and low of the data series that are used to calculate the spread.
I have not studied other spread indicators. NinjaTrader is not the best tool, if you want to trade spreads. If you just need a spread as an indicator, NinjaTrader should do.