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How to Create High Accuracy Spread or Ratio Charts

Normally when using the Difference (Bar) or Ratio (Bar) studies to create a spread or ratio chart, the High and the Low for a bar may not always be very accurate because it is based upon the highs and lows between the bars in the two charts that the study references. Those highs and lows may not always have occured at the same time. There is a way to create an accurate Spread or Ratio chart by using the Difference (Single Line) or Ratio (Single Line) study along with the Study Overlay - OHLC study.

  1. Open an Intraday chart for each of the symbols you want to make a spread or ratio chart from. Open the charts through File >> Find Symbol. We will call these charts A and B.
  2. Add the Difference (Single Line) or Ratio (Single Line) study to chart A, depending upon whether you want a spread or a ratio chart. Other types of spread studies can be used as well including the Spread - 3 Chart study.
  3. In the Study Settings window for the Difference (Single Line) or Ratio (Single Line) study, set the Chart 2 Number input to the B chart.
  4. Change the time frame of the chart bars in chart A to 10 seconds. This will cause chart B to become a 10 second chart as well. If you have your charts set to load a large number of days, this may take time to load a lot of bars. If it takes too long to load a 10 second chart, select Chart >> Chart Settings and reduce the Days to Load setting.
  5. Open another chart with the same symbol as chart A. This will be called chart C.
  6. Set the time frame per bar of chart C to whatever you require. For example, this could be 5 minutes per bar. If you require a Daily timeframe per bar for the final output, then select Chart >> Chart Settings for charts C and set the chart data type to Intraday Chart Only. This is located above the Intraday Chart Bar Period setting. For Daily bars, set the Days-Minutes-Seconds Per Bar value to 1-0-0.
  7. Add the Study Overlay - OHLC study to chart C.
  8. Set the Inputs with the Study Overlay - OHLC study to reference the Chart # of chart A and the Difference (Single Line) or Ratio (Single Line) study on that chart. This will result in overlaying the Difference (Single Line) or Ratio (Single Line) study on chart C as OHLC bars. This will be a high accuracy Spread or Ratio graph.
  9. You may also want to enable the Display as Main Price Graph setting with the Study Overlay - OHLC study.
  10. For an example of these steps, download the High Accuracy Spread Chartbook from the Additional Files page and save it to your Sierra Chart Data folder. You can then open it with File >> Open Chartbook.

The result of the Study Overlay - OHLC study may contain chart bars which are 0 and blank. Therefore, if you are calculating a moving average of this study, it is recommended to use the Moving Average - Simple Skip Zeros study to skip the zero/blank chart bars from this study.

*Last modified Tuesday, 24th April, 2018.