Corr Ln Delta Smth Indicator

Corr Ln Delta Smth Indicator

Corr Ln Delta Smth is a classic trend-reversal indicator for MT4. It shows bullish & bearish price divergences on MTF charts. Best for forex day trading

The Corr Ln Delta Smth indicator is an MT4 trading tool used to measure the correlation between two assets. It works based on the calculation of the difference between the logarithmic value of the closing price of an asset and the logarithmic value of the closing price of another asset. The trading rules of the Corr Ln Delta Smth weigh on identifying solid divergences between the indicator value and the price of the asset being traded.

This guide explains how to use indicator in MT4 to detect profitable buy-sell signals in forex and stock markets.

How the Corr Ln Delta Smth Determines Buy-Sell Signals in MT4

The Corr Ln Delta Smth indicator accurately measures the strength of forex currency prices to develop divergence signals on MT4 charts. Apart from regular divergences, it can also be used to spot hidden divergences.

In the above GBP/USD 15-minute chart, initially, the price developed a higher high while the indicator plotted a lower high, showing a bearish divergence. Before confirming a buy or sell order, you can use a trend indicator to confirm the signals match the current market bias.

Please note that the divergence trade signals plotted around key support/resistance or trendlines carry a higher probability of success.

Conclusion
The CorrLnDeltaSmth MT4 indicator objectively measures the correlation between different assets. It can help traders to develop more informed trading strategies and make better trading decisions. However, using the indicator in conjunction with other technical indicators and analysis tools is important to ensure that trading decisions are based on a comprehensive understanding of market trends and risk management.