diff --git a/Indicators/MyIndicators/Quant/SpreadCost_Pro.md b/Indicators/MyIndicators/Quant/SpreadCost_Pro.md new file mode 100644 index 0000000..31f795f --- /dev/null +++ b/Indicators/MyIndicators/Quant/SpreadCost_Pro.md @@ -0,0 +1,21 @@ +# Spread Cost Pro (Indicator) + +## 1. Summary + +**Spread Cost Pro** is a risk management utility that visualizes the "Real Cost of Trading" dynamically. It doesn't just show the spread in points (which is often meaningless in isolation), but calculates the spread as a **percentage of the current market volatility (ATR)**. + +This helps traders answer the question: *"Is it worth entering a trade right now, or is the spread too wide relative to the potential profit?"* + +## 2. Methodology + +$$Cost \% = \left( \frac{\text{Spread}}{\text{ATR}} \right) \times 100$$ + +* **Spread:** The difference between Bid and Ask at that historical moment. +* **ATR:** The average range of price movement (potential profit space). + +## 3. Usage + +* **Green Bars (< 10%):** **High Liquidity / Cheap.** This is the ideal time to scalp. The market is moving enough that the spread is negligible. +* **Red Bars (> 30%):** **Low Liquidity / Expensive.** The spread is eating up a huge portion of the potential move. + * *Warning:* This often happens during **News Events**, **Market Rollover (23:00)**, or on **Exotic Pairs**. + * *Action:* **DO NOT SCALP.** Only enter long-term Swing trades where the spread matters less, or wait for liquidity to return.