Stress Indicator, first proposed by Mr. Perry Kaufman, provides an easy way for trading pairs / arbs.
Kaufman's trading rules for Stress Indicator: - Decide on a pair to trade: For ex., AAPL v QQQ - Calculate the Stress Indicator (SI) for that pair - Buy the stock when SI 50 - Calculate the 60-day moving average of QQQ - If the trend of QQQ is down, hedge the stock position with QQQ equal to the risk of the stock using the 20-day ATR of each - Exit the hedge when the stock position exits, or exit the hedge when the trend of QQQ turns up - Do not trade stocks under $3
Though Kaufman's Stress stategy is built on top of this Stress Indicator, I suggest reading up his full strategy guidelines before applying this.
Kaufman suggests using 60SMA on the index to track the slope. I have included a custom SMA (find it in the middle pane) that can show SMA for any selected symbol. Use the guide below to import that in to your charts: drive.google.com/file/d/0Bx48Du_2aPFncUhIemNrZUY1dTA/edit?usp=sharing