Pair trading depends on clear signals, steady rules, and data that guide each step. Trading View gives traders the tools to study spreads, test relationships, and track conditions in real time. The platform helps traders map the link between two assets with clean charts and customizable indicators. Power Pairs supports this process with setups, templates, and simple explanations that remove guesswork.
This guide explains the Trading View indicators that pair traders use most, how each tool adds structure, and how to combine them into a full setup. It also includes two real examples, so readers can see how indicators behave on actual market charts.
Why Trading View Helps Pair Traders
Pair traders study relationships. They compare spreads, analyze trends, and monitor short bursts of pressure on one leg. Trading View offers flexibility for all of this without complex workflows.
Traders get:
Quick spread charts with custom formulas.
Consistent indicator settings across both assets.
Easy access to long lookback periods.
Alerts that help track quiet moves.
These tools help traders stay organized, especially when they monitor multiple pairs.
Core TradingView Indicators Used in Pair Trading
Below are the trading indicators that add real value to pair traders. Each one supports a different layer of the decision process.
1. Moving Averages on the Spread
Moving averages show the pace of spread movement. Pair traders avoid raw price charts because they hide structural differences between assets. The spread chart gives a clean baseline.
Traders track:
Short-term SMA measures immediate drift.
Long-term SMA shows the broader range.
SMA slope to see trend direction.
A spread that rises above both SMA lines often signals momentum pressure. A drop back through the fast SMA hints at a cooling imbalance.
2. Standard Deviation Bands
TradingView lets traders place custom deviation bands around the spread. These bands show how far the spread stretches from typical levels.
Traders study:
Width of the bands.
How often does the spread touch extremes?
How volatility shifts during news events.
Deviation bands help traders understand the environment before acting. Wide bands point to unstable conditions. Tight bands show calm markets that suit reversion setups.
3. Z-Score Script
Many traders use the Z-score in pairs trading because it shows how far the spread sits from its recent mean in standard deviation units. On TradingView, most scripts let traders adjust the lookback length and smoothing.
Traders monitor:
Z-score extremes that match strong volatility.
Z-score shifts that align with SMA direction.
Z-score reversals that signal fading imbalance.
Z-score never works alone. It only supports a decision when the spread structure stays stable.
4. RSI on the Spread
RSI helps traders see pressure on the spread leg that moves too fast. It works well when one asset reacts sharply to news while the other stays slow.
Traders watch:
RSI overbought levels during sharp spread expansions.
RSI pullbacks that match early reversion.
RSI divergence from the spread direction.
RSI gives timing guidance during stretched moves.
5. ATR for Volatility Filters
ATR helps traders size trades and set limits based on the spread's volatility. TradingView makes it easy to overlay the ATR on the same chart.
Traders use ATR to:
Decide position size.
Set stop distances.
Track changing volatility during earnings or macro events.
ATR keeps the setup grounded in real risk, not assumptions.
How Traders Combine Indicators: Example Setup
Here is a simple spread chart setup using SMA, RSI, and ATR on TradingView.
Spread Formula
The spread comes from taking one asset and subtracting the other asset after scaling it with the hedge ratio. In simple terms:
Spread = Asset A − (Hedge Ratio × Asset B)
The hedge ratio adjusts Asset B so that both legs sit on the same scale. This keeps the spread meaningful and prevents one price series from overpowering the other.
Setup Process
Apply a 20-period SMA and a 60-period SMA on the spread.
Add RSI (14) to spot stretch pressure.
Add ATR (14) to track risk and trade size.
How Traders Use the Setup
A spread that rises well above the 20-SMA and approaches the 60-SMA signals a building imbalance.
An RSI above 70 confirms that one leg is driving the move.
An ATR that rises sharply signals the market is heating up and that a smaller size is needed.
This combination gives structure without complexity. Power Pairs uses similar setups in training modules so traders build habits that rely on data, not intuition.
Real Case Studies Using TradingView Indicators
This section shows how indicators behaved in real markets. These notes highlight the value of TradingView tools without oversimplifying.
Case Study 1: GLD vs SLV During Volatile Macro Months
The same macro factors drive gold and silver, but silver reacts more quickly to risk swings. GLD and SLV often drift apart during sharp volatility spikes.
On TradingView, a trader noticed:
The spread moved far above the 20-SMA.
RSI jumped above 70 due to aggressive moves in SLV.
ATR expanded for days, signaling larger swings.
The trader waited for the spread to slow. RSI dropped first. SMA slope flattened. ATR cooled. These signs aligned, creating a structured reversion setup. The spread pulled back toward long-term levels as silver settled. This example shows how SMA, RSI, and ATR form a clear read when used together.
Case Study 2: BTC vs ETH During Rapid Crypto Cycles
BTC and ETH share broad digital asset drivers, but ETH reacts more quickly to strong inflows or liquidity drops. TradingView gives traders the tools to track these shifts with clean spread charts.
A trader saw:
The fast SMA is rising quickly as ETH surges
RSI is spiking above 70 and staying high for several candles.
ATR is exploding during market-wide volatility.
The trader waited for conditions to cool because the environment moved too fast. RSI dipped first. ATR dropped later. The spread crossed back through the fast SMA, signaling the first controlled move in days. The trader took a small reversion trade and kept size tight because crypto legs shift quickly.
Power Pairs often explains setups like this in plain, step-by-step terms so traders stay grounded in the data.
Conclusion
Trading View indicators give pair traders the tools to monitor structure, measure pressure, and manage risk on a single screen. SMA lines show drift. Deviation bands show range. RSI highlights stretched moves. ATR builds clear risk limits. Real pairs like GLD–SLV and BTC–ETH show how these indicators behave in actual markets. Power Pairs supports traders with simple templates, video walk-throughs, and chart guides that make these tools easier to use.
Want structured examples and ready-made TradingView setups?
Join Power Pairs and build a steady routine for pair selection and trade planning.
FAQs-
1. Do pair traders need many indicators on TradingView?
No. Most traders stick to a small set: SMA, RSI, ATR, and Z-score. These cover structure, pressure, and volatility.
2. Can traders reuse the same parameters for every pair?
No. Each pair behaves differently. Traders adjust lookback lengths based on volatility and long-term stability.
3. Does the spread always move back to long-term levels?
No. The relationship can shift. Traders test pairs often and stop trading them when the structure drifts too far.
4. How do alerts help pair traders on TradingView?
Alerts notify traders when the spread hits important levels, crosses moving averages, or approaches volatility bands.
5. Which TradingView indicators support trade timing?
RSI, SMA, and ATR support timing because they track pressure, direction, and volatility. These Trading View indicators help traders control entries and exits with clear data.
