Correlation Candles
Info
The Correlation Candles is a Indicator for MetaTrader 5 that this indicator combines rank (auto)correlation of four prices into a single indicator. Instead of using just one price, this indicator utilizes the standard four prices: open, close, high, and low.
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 Candles
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
This indicator combines rank (auto)correlation of four prices into a single indicator.
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: Heikin Ashi Candlesticks - another powerful indicator for MetaTrader 5 traders.
This indicator combines rank (auto)correlation of four prices into a single indicator.Instead of using just one price, this indicator utilizes the standard four prices: open, close, high, and low. It calculates the (auto) correlation ranks and merges these results into one indicator. The candle colors, or 'trends', are determined based on the correlation of open to close. The highest and lowest values serve as indicators of current volatility, either its presence or absence.
Also recommended: HTF Candles (ICT Power of Three): Higher Timeframe Candles Displayed - similar indicator with strong performance on MetaTrader 5.
The indicator supports Spearman and Pearson correlation types. While similar, these types can yield significantly different results, so some experimentation is recommended to identify the type that aligns best with specific trading styles. The default calculation length is set for a trend-oriented approach. To adapt it for momentum-based (fast) responses, adjust the period to shorter values.
Unlike classical rank correlation, in this indicator, 'rank' does not refer to the correlation applied to independent sets of data (prices, values, etc.). Instead, it represents 'trend direction' or 'momentum-like' behavior and should be interpreted accordingly.
You may also like: Heiken Ashi ATR Blend: Smoothed Candles and Early Entry Signals - 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.