Market Correlation Indicator

Market Correlation Indicator

Market Correlation Indicator For MT4 calculates the correlation between forex currency pairs and helps anticipate bullish and bearish price movements

The Market correlation indicator for MT4 plots the relation between the currency pairs in real time. It helps forex traders to identify if any two currency pairs are moving in the same or opposite direction. As a result, traders can study the price movement of a correlated currency pair to understand and anticipate the price movements of the other pair.

The indicator is simple to use and is an excellent tool for new and advanced forex traders. Since the indicator calculates the correlation based on the current chart time frame, it helps all types of traders. Traders should choose a set of currency pairs to identify the best positive or negatively correlated currency pairs.

Market Correlation Indicator For MT4 Trade Setup

The indicator plots Green line for EURGBP, red for EURJPY and blue for EURCHF. Additionally, it plots the correlation values in the indicator window from +1 to -1. The currency pairs move in the same direction if they have a positive correlation. On the other hand, if they move in opposite direction they have a negative correlation.

Positively correlated currencies tend to stay together above or below the 0 line. While negatively correlated currency pairs tend to stay on either side of the zero line. The closer are the correlation values, the higher correlation between them.

This indicator does not provide buy or sell forex trading signals. Instead it acts a tool to make better and informed decisions. For better results, traders should consider adding a group for currency pairs and check them in different chart time frames to identify the higher trend.

Conclusion
In summary, the Market correlation indicator for MT4 is an important tool for forex traders comparing and correlating multiple forex currency pairs.