Pearson Spearman Correlation Indicator for MT4 Download - [TradingFinder]

The Pearson Spearman Correlation tool combines statistical and technical analysis to evaluate complex relationships between variables and assess market trend changes within MetaTrader 4 indicators.

This oscillator can simultaneously analyze linear and nonlinear relationships, displaying positive and negative correlations (from -1 to 1) on the chart.

Pearson Spearman Correlation Indicator Specifications Table

The following table outlines the key features of the Pearson Spearman Correlation indicator:

Uptrend Conditions

According to the Ripple (XRP) price chart in the 30-minute timeframe, the orange and blue oscillator lines oscillate between the overbought and oversold levels (+1 and -1).

When the orange and blue lines cross above the -0.7 level, and a green arrow appears, it signals an oversold condition and a buy entry signal, while a red cross indicates an exit signal.

Downtrend Conditions

The image below displays the price chart of the GBP/USD currency pair. For a bearish trend to begin, the two oscillating lines cross in the +0.7 range. 

This condition indicates reduced buying pressure and increased selling strength in the market. Consequently, a green arrow represents a sell entry signal, while a gray cross indicates an exit signal.

Indicator Settings

Image below displays the Pearson and Spearman Correlation indicator settings:

• Pearson correlation:Pearson Coefficient
• Pearson Fast Period: Pearson Rapid Cycle
• Pearson Slow period: Pearson Smooth Cycle
• Spearman fast period: Spearman Rapid Span
• Spearman slow period: Spearman Smooth Span
• Applied price: Input Price
• Level: Reference Level
• Exit level: Exit Threshold
• Alert: Signal Alert
• Sl bars back: Number of Previous Candles
• Long color: Buy Trade Color
• Short color: Sell Trade Color
• Width: Line Thickness
• Signal after n bars: Signal after n candles

Conclusion

The MT4 Trading Assistant indicator simultaneously analyzes Pearson (linear) and Spearman (nonlinear) correlation.

 It measures correlation within a numerical range from -1 to +1, enabling the identification of co-directional (positive correlation) or inverse (negative correlation) relationships between variables and providing suitable entry and exit points.