Cracking Correlation (ICT) Indicator for MetaTrader 4 Download – Free – [TFlab]

The Cracking Correlation Indicator is designed to detect correlation shifts between three assets, such as DJI, ND100, and SP500.

Highly correlated symbols usually move in similar directions. However, this correlation can sometimes break down. This ICT MetaTrader 4 indicator highlights these correlation breaks using lines.

Cracking Correlation Indicator Specifications

The table below highlights the key features of the Cracking Correlation Indicator:

Bullish Market Scenario

In a 30-minute chart of DJI, ND100, and SP500, the SP500 breaks above a price ceiling, while the other two symbols remain below it.

This reflects a correlation break, indicating that SP500 is leading the market in an uptrend.

Bearish Market Scenario

In the 30-minute charts of DJI, ND100, and SP500, the DJI breaks below a defined support level, while ND100 and SP500 fail to break the same level.

This identifies a correlation breakdown, highlighting the DJI as the outlier leading the downtrend.

Cracking Correlation Indicator Settings

The following image showcases the settings panel for the Cracking Correlation Indicator:

• First symbol: Set the primary asset for analysis
• Second symbol: Choose the second asset
• Third symbol: Select the third asset
• Show objects: Enable or disable the display of chart elements

Conclusion

The Cracking Correlation Indicator is capable of displaying correlation breaks among three trading symbols.

This liquidity indicator MetaTrader 4 uses color-changing lines to help identify correlation breakdowns between the selected symbols. It’s important to note that to activate the indicator, it must be applied to the First symbol.