The Spread Points indicator for Metatrader 5 displays the real-time currency pair spread on the price chart.
The spread is the difference between the ask price and the bid price.
It represents the actual cost of trading imposed by your Forex broker.
You have the flexibility to customize various parameters and indicator settings such as font color, font size, font face, corner placement, distance on the X-axis, and distance on the Y-axis.
This indicator is compatible with all trading instruments available on the MT5 charting platform.
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Chart Example
The picture below displays what the Spread Points indicator looks like when applied to the MT5 chart.
MT5 Trading Strategy Using Spread Points Forex Indicator and Slope Direction Line Signal Indicator
Overview
This strategy combines the trend-following capabilities of the Slope Direction Line Signal Indicator with the real-time spread tracking from the Spread Points Forex Indicator.
It is designed to help traders avoid entering trades during high-spread conditions while ensuring they are aligned with the current trend direction.
Timeframe
Works best on M15, M30, and H1 charts for intraday trading. Suitable for scalping and short-term swing trading.
Indicators Used
- Slope Direction Line Signal Indicator – identifies trend direction based on slope changes and signals potential entries.
- Spread Points Forex Indicator – displays the current spread in real time to avoid entering trades during expensive conditions.
Buy Entry Rules
- The Slope Direction Line turns green, indicating an uptrend.
- The spread shown by the Spread Points Indicator is low (e.g., under 2.0 points for major pairs).
- Wait for a bullish candle to close above the slope line.
- Enter a buy trade after confirmation.
- Place a stop-loss below the recent swing low or the slope line.
- Take profit using a 1:2 or 1:3 risk-to-reward ratio or trail stop behind the slope line.
Sell Entry Rules
- The Slope Direction Line turns red, indicating a downtrend.
- The spread is within acceptable levels (low and stable).
- Wait for a bearish candle close below the slope line.
- Enter a sell trade after confirmation.
- Place a stop-loss above the recent swing high or the slope line.
- Set take-profit at a minimum of 1:2 risk-to-reward or use dynamic stop management.
Tips for Best Results
- Do not enter trades when the spread is abnormally high, even if the slope line gives a signal.
- Use the strategy during the London and New York sessions for lower spreads and higher volume.
- Combine with price action confirmation (e.g., engulfing candles) for more reliable entries.
Conclusion
This strategy helps filter out false entries and costly trades by combining trend direction with real-time spread data.
The Slope Direction Line Signal Indicator ensures you’re trading with momentum, while the Spread Points Forex Indicator keeps you out of unfavorable conditions caused by wide spreads.
Frequently Asked Questions
How Do I Install This Custom Indicator On Metatrader 5?
- Open the MT5 trading platform
- Click on the File menu button located at the top left part of the platform
- Click on Open Data Folder > MQL5 folder > Indicators
- Copy the spread.mq5 indicator file in the Indicators folder
- Close and restart the trading platform
- You will find the indicator here (Navigator window > Indicators)
- Drag the indicator to the chart to get started with it!
