Correlation candles
This software component for MetaTrader 5 is built to enhance the capabilities of your trading environment. This technical indicator acts as a specialized analysis tool designed to visualize market data. It helps traders identify emerging trends, momentum shifts, and key support or resistance levels by plotting statistical calculations directly onto price charts.
How to Setup 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.
Description & Settings
Indicator that combines rank (auto)correlation of 4 prices in to one single indicator .
Instead of using just one price, this indicator uses the standard 4 prices: open, close, high and low, calculates its (auto) correlation ranks and combines those result into one indicator. The candle colors ("trends") are determined based on the correlation of open to close. The rest (the highest and the lowest) are good indicators of current volatility — the presence or the lack of it.
The correlation types supported by the indicator are Spearman and Pearson correlation. Although they are similar, the difference can be significant and some experimenting is advised to find the type that is suitable to specific trading style. Default calculation length it set to a rather "trend orientated" usage. To use it for momentum like (fast) response, set the period to shorter value(s).
Unlike the classical rank correlation — in this indicator "rank" does not mean the same as when the correlation is applied to independent sets of data (prices, values, ...). In this case it becomes more a "trend direction" or "momentum like" and it should be used like that.
