DEMI Spaghetti Indicator

Correlation Pairs Spread Trader

🎯 Purpose

This indicator is specifically designed for correlation spread trading between highly correlated cryptocurrency pairs. Each color group represents two assets that typically move together, allowing traders to identify spread trading opportunities when the correlation temporarily breaks.

📊 How It Works For Spread Trading

Color-Coded Correlation Groups: Similar colors = correlated pairs
Spread Visualization: The difference between lines shows the spread between correlated assets
Mean Reversion Signals: When correlated pairs diverge significantly, it creates potential mean reversion opportunities
💡 Trading Strategy

Identify Correlated Pairs (same color group)
Monitor Spread Divergence - when percentage changes differ significantly
Enter Spread Trades:

Buy the underperforming asset
Sell the outperforming asset
Wait for Correlation Restoration - profit when spread narrows back to normal
🎨 Correlation Groups:

🔴 Red Group: ARB/SUI - DeFi tokens
🔵 Blue Group: 1INCH/CRV - DEX tokens
🟢 Green Group: AXS/MANA - Gaming/Metaverse
🟣 Purple Group: SHIB/DOGE - Meme coins
🟦 Teal Group: ALGO/DOT - Layer 1 protocols
⚪ Yellow/White: ETH/BTC - Market leaders