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In general terms, a spread is created by the difference between any two prices. In eSignal, spreads are created by using spread symbols. The Spread Symbol Settings window was introduced with the release of eSignal 7.9, and it can be found in the menu bar under Tools.
The Spread Symbol Settings window allows a user to create his or her own custom symbols by specifying a simple or complicated spread using parentheses or multiple operators (+ - * /). In addition to using multiple symbols in a spread, the user can also use numerical constants such as MSFT + 50. Once a spread symbol has been created, it can be entered into other windows, such as a Quote window or a Chart window, to plot the results of the spread. You may also use the new spread symbol to calculate other spreads.
Before we explain how to set the spreads, let’s review how spreads are calculated.
Calculating Spreads in eSignal
Spreads displayed on intraday charts are calculated by taking the Open, High, Low and Close of each one-minute bar, and then recompiling them into the selected interval. The result is a more accurate spread than any spread calculated in any of the versions of eSignal before 7.9. To reach that level of accuracy, more data was required to be downloaded and processed.
For instance, on a 60-minute spread chart, instead of doing one calculation per bar, eSignal now has to request 60 times more data and perform 60 calculations to create one bar. Depending on the complexity of the spread and the number of symbols in the spread, this can lead to a significant increase in the amount of time to display a spread chart.
How to Create New Spread Symbols
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Open the Spread Symbol Settings window from the eSignal menu bar by clicking Tools, Spread Symbols Settings. |
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Enter a name for the symbol that is to be created, we will use TEST1 for our example, then enter the Spread into the Formula field. For our example, we will use DELL + MSFT + 3. |
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Click Add and verify that the formula is displayed in the window next to the selected name. Click
Close. |
The newly created spread symbol can be entered in an Advanced Chart to display a chart of the spread, or, in the case of a Quote window, to display the spread price.
The major advantage of using the Spread Symbol Setting window is that it enables the user to create complex spreads, create short names for those spread symbols, use those symbols in a quote window or summary window, link those windows to a chart and have the spread display graphically as the user clicks on each of the symbols.
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