Pairs trading[Maxxxz7]

Pairs Trading [Maxxxz7]

This script is designed to analyze and visualize the divergence or convergence of two selected financial instruments, making it an excellent tool for implementing a pairs trading strategy. Developed for the TradingView platform, it offers extensive customization options for analysis.
Key Features:

Asset Selection:
The first asset can be taken directly from the chart or specified manually.
The second asset is always selected manually.

Data Normalization:
Calculates the percentage change of both assets relative to their initial prices.
Includes an offset for better visual interpretation.

Visualization:
Plots normalized price charts for both assets.
Highlights crossovers between the assets.
Displays the spread (difference between normalized prices) graphically.

Alerts (Works only on the 30-minute timeframe):
Configurable thresholds to trigger alerts (e.g., when the difference is smaller or larger than a set value).
Alerts for crossovers of prices and exponential moving averages (EMA).

Dynamic Labels:
Automatically adds labels to mark key events: crossovers, critical spread values, and current price information.

EMA and Deviation Analysis:
Calculates EMA for each asset.
Alerts for EMA crossovers.