Correlation Clusters Indicator in MetaTrader 5 Download – [TradingFinder]

The Correlation Clusters indicator is a specialized tool for analyzing the correlation of trading symbols with a reference currency in MetaTrader 5.

Forex and crypto traders can use this indicator to monitor and analyze the degree of positive or negative correlation of trading symbols with the reference currency through the panel displayed in the upper-right corner.

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 practical tool that allows traders to examine the degree of correlation between other trading symbols and a selected reference currency.

This indicator enables technical traders to view positive and negative correlations of forex and crypto symbols within one panel and make more specialized chart-based decisions by analyzing price behavior.

Positive Correlation

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

Using the Correlation Clusters indicator and setting EUR/USD as the reference currency, traders can evaluate the correlation levels of different pairs.

Here, GBP/USD shows a positive correlation with EUR/USD. When the reference currency trends upward, the positively correlated symbol also follows a similar uptrend depending on the strength of the correlation.

Negative Correlation

In another chart, EUR/USD and USD/CHF are displayed.

With the Correlation Clusters indicator, traders can analyze negative correlations between the reference currency and other pairs.

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

As the reference currency trends upward, the negatively correlated symbol moves downward. The stronger the negative correlation, the more opposite the movement will be compared to the reference currency.

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: This section allows you to set the number of candles in the selected timeframe, so that correlation calculation and display are performed based on the specified data;
• K-means clusters: Set the number of clusters considered in K-means calculations;
• K-means max iterations: Set the maximum iterations for K-means calculations.

Color of Clusters

• Cluster: Set correlation colors.

Conclusion

The Correlation Clusters indicator is a suitable tool for traders seeking to analyze positive and negative correlations between trading symbols.

It allows traders to study a reference currency’s relationship with other instruments in a single panel on the chart, simplifying correlation analysis and enabling more specialized decisions.