Currency Pairs Correlation Indicator for MetaTrader 4 Download - Free - [Trading Finder]

The Currency Pairs Correlation Indicator is one of the indicators for MetaTrader 4 that automatically examines the correlation between various market currencies and presents it to traders. This oscillator uses green and red histograms to show the positive and negative correlations between currency pairs in the market. For instance, EURUSD and USDCHF have an inverse or negative correlation. The price chart displays correlated movements in the same direction using green histograms, while movements in opposite directions are shown using red histograms.

Currency Pairs Correlation Indicator Table

Bullish Trend Conditions of the Indicator (Buy Positions)

The EUR/USD currency pair is shown in the 1-hour timeframe in the image below. In this example, we compare EUR/USD with USD/CHF. Since these two symbols have a negative correlation, the oscillator’s two lines cross, and the green histogram indicates that EUR/USD is ready for an upward move, while USD/CHF is ready for a downward trend.

Bearish Trend Conditions of the Indicator (Sell Positions)

The USD/CHF currency pair is shown in the 15-minute timeframe in the image below. In this example, we compare USD/CHF with EUR/USD. Since these two symbols have a negative correlation, the oscillator’s two lines cross, and the green histogram indicates that USD/CHF is ready for a downward move, while EUR/USD is ready for an upward trend.

SettingDescription

• ActiveLevel: Settings for positive histograms
• PassiveLevel: Settings for negative histograms
• Symbol1: The first currency pair for calculation (e.g., EURUSD)
• MAPeriod1: Moving average period for the first pair, set to 13
• MAMethod1: Set to 0 for Exponential Moving Average
• MAPrice1: Set to 0 for calculation based on the Close price
• MaAvg1: Averaging based on the last five candles
• Symbol2: The second currency pair (e.g., USDCHF)
• MAPeriod2: Moving average period for the second pair, set to 13
• MAMethod2: Set to 0 for Exponential Moving Average
• MAPrice2: Set to 0 for calculation based on the Close price
• MaAvg2: Averaging based on the last five candles

Conclusion

The Currency Pairs Correlation Indicator is a valuable tool for technical analysts. It helps to identify the relationship between different currency pairs. This indicator not only aids in finding effective trading opportunities but also enhances Risk Management.