This spread history indicator mt4 called the FXRM_Spread_History.mq4 main objective is to monitor and keep a record of your forex broker’s spread.
The download link is at the very bottom of this article.
How To Trade With The FXRM_Spread_History MT4 Indicator
As stated, the purpose of this indicator is to monitor spreads. All you do is upload it into your charts and then it starts tracking the broker’s spread.
Here’s what this spread history indicator looks like when you upload it into your chart:
- purple bars represent the maximum spread during that time period the bar (or candlestick) was forming.
- the green line show the average spread
- spread spike-this is when you see a very tall bar (on the spread history indicator)
From this spread history indicator, you can:
- see periods where spreads increased (usually during periods of low volatility, for example, just before a forex news is to be released) or you can also see in the past history where a spread spike has happened.
Spread History Indicator For Different Timeframes
This spread history indicator can be placed on any timeframes, and no spread spikes from your forex broker can hide away as long as the indicator is placed before the spread spike happens.
From this indicator, you may also be able to see how spreads change during different trading sessions. For example, during London Forex Trading Session, the spreads will be tight because there will be a lot of liquidity.
How Trading Strategies and Expert Advisors Get Impacted By Large Spreads
Here’s a fact: spreads can spike and they do spike.
They can spike from 2-10 pips or more even in the major currency pairs.
Imagine what kind of trouble this causes if you placed your stop loss too close?
Or imagine that you developed an EA and the buy and sell rules are based on a spread of maximum of 2-3 pips range and your EA back test history shows that it is a profitable EA but but when you trade it in live trading, the performance is not like in the back test?
Well, in reality, the spread fluctuates between 2-5 pips but your EA trading rules did not factor that in so your live trading results will be significantly impacted because of this spread.
MT4 Spread History Indicator Download Link
You may also be interested in the mt4 spread indicator.
Ok, here’s the download link:FXRM_Spread_History