Correlation indicator.
There are many different strategies in the Forex market, one of the most popular is the use in the trading system of the principle of relationship between exchange rates, which is also called Forex correlation .
The bottom line is that you need to find two interrelated currency pairs, and determine how one currency pair behaves when the rate of the second changes. You can do this yourself, but it’s easier using the correlation indicator.
A special scratch will help identify patterns in the movement of currency pairs, which will allow you to profit from currency fluctuations.
The correlation indicator is the easiest to use tool, the settings of which can be handled by any novice trader.
Main parameters:
Symbol1 – the main trading tool
Symbol2 is the second tool for calculating correlation
Depth – the number of time periods (bars, candles) on which you want to use the correlation indicator, for example, you trade on H1 and want to take into account the trend history only for the last 12 hours, which means we set the Depth indicator to 12.
Shift – deviation for currency pairs, it is better to use a zero indicator, as is set in the default settings.
ExpKoef – some coefficient that is applied to the blue line, we also leave the existing indicator.
You can also change the thickness and colors of the displayed lines and select the time frame on which the indicator will work.
To increase your work efficiency, it is recommended to open two charts of the currency pairs used at once, so you will get the maximum idea of how the presented instrument works.
After downloading, you need to perform a standard installation and configure the necessary parameters; after launch, another window will appear in the trader’s trading terminal, in which two lines will be displayed, red and blue.
The indicator installed in the trader’s terminal worked quite correctly; in addition, one cannot fail to note its main advantage - it is absolutely free, unlike many analogues.
Download the correlation indicator.