Average True Spreads

Average True Spreads

The Average True Spread Indicator is designed to visually display the average spread (difference between Ask and Bid prices) over a specified number of candles and timeframe, directly on the chart. Its primary purpose is to give traders real-time insight into how volatile or expensive the market is to enter, especially during fast-moving or low-liquidity periods.

✅ Benefits of Knowing the Average Spread

1. Better Entry Timing
   Avoid trading when spreads are abnormally high (e.g., during news events or market open/close), which can eat into profits immediately.

2. Improved Strategy Optimization
   Spread-sensitive strategies (like scalping or high-frequency trading) can use average spread data to filter out bad trade conditions.

3. Broker Comparison
   Helps evaluate whether your broker consistently offers competitive spreads or not.

*The default settings give the average true spread of 2 days within the candlesticks of the 5-minute timeframe. The indicator is only placed on the top left hand.*