Correlation Clusters Indicator in MetaTrader 4 Download – [TradingFinder]

The Correlation Clusters indicator is an advanced tool for forex traders that enables them to measure the level of correlation between symbols in MetaTrader 4.

This indicator allows traders to analyze both positive and negative correlations in the market and use this information to evaluate price behavior.

Correlation Clusters Indicator Table

Below, the information related to the Correlation Clusters Indicator is provided:

Correlation Clusters Indicator at a Glance

The Correlation Clusters indicator is a specialized tool for technical traders that uses a correlation panel to analyze the relationships between forex and crypto pairs based on a reference currency.

Traders can use trading strategies to identify symbols with positive or negative correlations and take buy or sell trades on the chart based on price behavior.

Positive Correlation

In the example chart, EUR/USD and GBP/USD are displayed.

By applying the Correlation Clusters indicator and selecting EUR/USD as the reference currency, traders can evaluate the correlation levels between different pairs.

Here, GBP/USD is selected as the second pair, and its correlation with EUR/USD can be seen in the panel.

If the reference currency is bullish and a positive correlation exists, the second pair will also follow an upward trend based on the correlation strength.

Negative Correlation

In another chart, EUR/USD and USD/CHF are displayed. Traders can analyze negative correlations between the reference currency and other pairs using the Correlation Clusters indicator.

Here, EUR/USD is the reference currency, and USD/CHF shows a negative correlation.

If the reference currency trends upward, the negatively correlated pair will move downward according to the correlation strength.

Correlation Clusters Indicator Settings

Below, the settings of the Correlation Clusters Indicator are provided:

• Reference symbol: Set reference currency;
• Forex Symbols: Define forex currency pairs;
• Crypto Symbols: Define cryptocurrency symbols;
• Calculation Time Frame: Select the calculation timeframe;
• Bars used for correlation: Number of candlesticks used for correlation calculations in the selected timeframe;
• K-means clusters: Define the number of clusters included in K-means calculations;
• K-means max iterations: Set the maximum iterations for K-means calculations.

Color of Clusters

• Cluster: Define correlation colors.

Conclusion

The Correlation Clusters indicator is a useful tool for traders who want to analyze correlations between forex and crypto market symbols.

By providing a correlation panel, it allows traders to perform more advanced analysis and examine positive and negative correlations between different symbols and a reference currency.