Pearson coefficient
This professional-grade solution for MetaTrader 5 helps traders achieve greater efficiency in their daily workflow. 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 Pearson coefficient
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
The definition:
Pearson's correlation coefficient is the of the two variables divided by the product of their . The form of the definition involves a "product moment", that is, the mean (the first about the origin) of the product of the mean-adjusted random variables; hence the modifier product-moment in the name.More information you can find here :
When "Second symbol" parameter is set to empty value, current chart symbol is used. In this case the "Lag" parameter must be set to some value greater than 0 otherwise the result will always be 0
When "Second symbol" parameter is set to some valid symbol different than the current symbol chart, that symbol is used. In this case the "Lag" parameter should be set to 0 (to calculate the correlation corresponding bars) but you can introduce lag too, keeping in mind that the second symbol data is really lagged in that case
Usage:
As any correlation indicator - when the expected correlation is deviation, that can be used as a signal to take appropriate action (in correlation trading style)
Example(s):
Current symbol with 1 bar lag
Foreign symbol with 0 bar lag
