Indicators · Mean reversion · moving-average gap swing ladder
SpreadBias Lite
SpreadBias Lite tracks the percentage gap between a fast and a slow moving average. It learns how big a typical swing is, then buys when the gap turns up from a deep enough dip and sells when it rolls over from a big enough rally.
What it is
The gap is the 8-bar smoothed average of the bar midpoint minus the 32-bar one, as a percentage of the two. Every time the gap crosses zero, the swing that just ended is saved, keeping the last 50 per side. The buy and sell lines are set as a fraction of the average past swing, and the sell line leans with trend strength (ADX). Buys and sells come in dollar and percentage steps that grow within a cycle, so it scales in and out instead of going all in. It draws on price; Plumbline uses it for its crypto trims.
Inputs and defaults
| Input | Default | What it does |
|---|---|---|
| Source / lengths | hl2 · 8 / 32 | Fast and slow smoothed averages |
| Swings remembered | 50 (min 5) | Past swings used to set the lines |
| Buy sensitivity | 0.3 | Share of a typical downswing the gap must reach |
| Sell sensitivity | 0.7 | Share of a typical upswing; moves toward 0.85 in a strong rally and 0.5 in a strong decline |
| Trend strength | ADX 14, full shift at 40 | How far the sell line leans |
| Waits | 2 bars between buys, 8 between sells | Cooldowns |
| Sell trigger | Both | Recross, swing top, or either |
| Ladder | $100 base, ×1.5 per step, max 5 steps | Buy size; sells start at 10% of what is left, capped at 50% |
| Caps | 24 buys / 50 sells per cycle |
Signals and rules
- Buy: while the gap is negative, the bar it stops falling and ticks up, if the prior bar was at or below the buy line.
- Sell (recross): the gap rises above the sell line, then the first close back inside it.
- Sell (swing top): the gap rolls over from the highest point of this swing while above the sell line. The swing gets one exit.
- A buy after sells closes the cycle and resets the ladder.
- An optional z-score override (off by default) lets a very deep gap buy without waiting for the turn.
Reading the chart
- The ribbon between the two averages is gold when the gap is positive and blue when negative.
- Triangles mark buys and sells; optional markers show signals blocked by a cooldown or cap.
- Teal shading marks RSI below 25 and magenta above 75 (RSI 14); yellow shading marks bars with three times normal volume.
- Monitor and performance tables show the lines, the book and the next-level prices.
Where it appears on MystTrades
SpreadBias runs inside Plumbline on crypto by default: while Plumbline is invested it trims on SpreadBias sell signals and adds back on accepted buys.
Tested results and limits
No SpreadBias chart table is published here. The code describes itself as a close-price allocation model with no cash budget, fees or slippage, and notes that it makes no performance claim.
Alerts
In TradingView open the alert dialog, set Condition to SpreadBias Lite, pick the event you want from the list, and choose Once per bar close. Events are decided on the confirmed close; where an order is involved it fills at the next open.
- SB Lite buy and SB Lite sell: an executed buy or sell on a confirmed bar.
Version
SpreadBias Lite 0.82.
Nightly refresh and version
The site recomputes every read from end-of-day data each night after the close. Versions described here: SpreadBias Lite 0.82.
Research only, not investment advice. This page describes how the indicator works in plain English; it does not publish the source. All results shown are hypothetical.