Correlation
Info
The Correlation is a Indicator for MetaTrader 5 that correlation of two symbols. Values oscillate 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: Multi-Symbol Correlation Divergence Meter - another powerful indicator for MetaTrader 5 traders.
Correlation of two symbols. Values oscillate between +1 (complete positive correlation) and -1 (complete negative correlation). A correlation value of 0 indicates no correlation, meaning random price changes between the observed symbols.Also recommended: Rolling Return Autocorrelation Regime Oscillator - similar indicator with strong performance on MetaTrader 5.
Usage:
The correlation period can be adjusted to calculate longer-term or shorter-term correlations. Longer periods are useful for observing if the monitored symbols tend to trend in the same direction, while shorter periods are ideal for sudden price change observations, such as when news affects one symbol but not the other.
Enter the symbols you wish to monitor in the symbol parameters. If left empty, the current chart symbol will be used.
Coloring Mode: The two-color mode displays different colors when the correlation crosses the zero value (no correlation).
Recommendations:
When the observed symbols exhibit strong positive or negative correlation, a break in the opposite direction can signal potential entry points. Identify the symbol deviating from the usual trend and enter in the direction of the other observed symbol.
Correlation values above 0.8 or below -0.8 indicate a high level of correlation.
Note: Using the same symbols in both symbol parameters will always result in a correlation value of 1.
You may also like: Portfolio Correlation and Margin Risk Calculator - 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.