Spread = (Close (market1, n)/Close (market2, n))*100
Will-Spread = EMA (5, Spread) – EMA (20, Spread)
The main method of using Will-Spread is watching the way it crossing the zero line. If the indicator crosses the zero line upward, rising trend is likely to continue. When the indicator falls below the zero line, there is an obvious downtrend.
The author offered to use the indicator in trading from the standpoint of a filter: when Will-Spread crosses the zero line, a trader should wait for the formation of the bar that follows after the signal. In case the new bar generates a high/low above/below the previous one, a trader should open position. It is not recommended to open position if the bar does not form a new high/low.
The main condition for calculating Will-Spread is the choice of a financial asset that is the most influential for a currency pair. The most common assets of adjacent markets are GOLD, oil (#CL), S&P-500 index (#SPX), and Nikkei-225 index (#N225). Gold and oil can be easily used for major Forex currency pairs, while stock indices perform better in generating leading signals for such currency pairs as the USD/CHF and the USD/JPY.
FastMAperiod = 3
SlowMAperiod = 15
SecondMarket = GOLD