correlation
Info
The correlation is a Indicator for MetaTrader 5 that correlation of two symbols. values are oscillating between +1 (complete positive correlation) and -1 (complete negative correlation).
Usage
This tool is typically used for enhancing chart analysis and decision making.
Platform
This Indicator works exclusively on MetaTrader 5 (both build 600+ and newer versions).
Setup
Place the downloaded file in MQL5/Indicators folder via File ? Open Data Folder in MetaTrader 5.
How to Install and Use correlation
1. Installation: Place your file in the MQL/Indicators folder via "Open Data Folder" and restart your terminal.
2. Loading: Find the indicator in the Navigator, drag it onto your chart, and configure the input parameters in the popup window.
3. Customization: Press Ctrl+I to open the indicator list, select your tool, and click "Properties" to change colors, levels, or visual styles.
4. Updating: Replace the old file in the Indicators folder with the new version and restart the platform to apply changes.
Frequently Asked Questions
Q: Why is my indicator not showing? A: Verify the file is in the MQL/Indicators folder, or try right-clicking the "Indicators" tree in the Navigator and clicking "Refresh."
Q: Do custom indicators slow down the platform? A: Too many complex indicators can impact performance; remove unused ones via the "Indicator List" (Ctrl+I).
Q: Can I use MT4 indicators on MT5? A: No, MQL4 and MQL5 are distinct languages; ensure the indicator is compiled specifically for your platform version.
What this tool does
correlation of two symbols.
Typical Use Case
This Indicator excels in automated trading and technical analysis on MetaTrader 5.
Compatible Platform & Setup
This Indicator works on MetaTrader 5. Place the file in the MQL5/Indicators folder and restart the terminal.
Description & Settings
Related: Portfolio Correlation and Margin Risk Calculator - another powerful indicator for MetaTrader 5 traders.
correlation of two symbols. values are oscillating between +1 (complete positive correlation) and -1 (complete negative correlation). correlation value 0 is denoting absence of correlation (random changes without correlated price changes between the two observed symbols).
Also recommended: interactive correlation matrix heatmap for mt5 - similar indicator with strong performance on MetaTrader 5.
usageuse the correlation period to calculate either longer term correlation using longer period (good for observing if the symbols that are monitored are tending to trend in the same direction) or using short period (good for sudden price changes observation - usually when news are issued for one symbol and not for the other).
enter in either or both of the symbol parameters the symbol you wish to monitor.
if the symbol parameter is left empty, current chart symbol will be used.
set the coloring mode (two color mode is displaying different colors when zero value - no correlation level - is crossed). recommendations
if the symbols observed tend to be either completely positively or negatively correlated, a break in the opposite direction usually can be used for entries.
in cases like the above estimate which is the symbol that is deviating from the usual trend, and enter in the direction of the other observed symbol.
all values above 0.8 or bellow -0.8 can be considered as a high level of correlation.
p.s.
using same symbols in both symbol parameters will always produce result 1.
You may also like: institutional dxy overlay and correlation divergence indicator - excellent alternative for indicator users on MetaTrader 5.
Source Code
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⚠ Limitations & Risk Warning
- This tool is provided for educational and testing purposes only.
- Past performance does not guarantee future results.
- Trading involves substantial risk of loss. Use on a demo account first.
- Results may vary depending on market conditions, broker, and settings.
- We recommend thorough backtesting and forward testing before using with real funds.