Introduction to Currency Pairs Correlation Indiator

Forex traders trade currencies for other currencies. This is a unique characteristic of the forex market. Each currency has its own supply, which drives up prices. Sometimes, currency pairs can become correlated. The Currency Pairs Correlation Indicator can be used to help traders identify correlated markets, and then trade in the direction that the correlation leads.

What's the Currency Pairs Correlation Index?

The Currency Pairs Correlation Indicator is a customized technical indicator that detects currency pair correlations.

The indicator displays two oscillating lines in its indicator window. The indicator plots a blue line that indicates the direction of the main currency pair. It can also be set up to plot an orange line that indicates the direction of the paired currency pairs. Then, it plots green bars to indicate bullish correlation and red bars for bearish correlation. This should reflect on the price chart of the main currency pair.

How does the Currency Pairs Correlation Index work?

The Currency Pairs Correlation Indicator uses an underlining moving average line for each currency pair.

Important to remember that this indicator was designed to detect inverse correlations. The currency we will be looking at for correlations is the term currency on each currency pair. This indicator can detect correlations in USD by using the EURUSD and USDCHF as the main currency pairs.

The indicator detects any deviations from the underlying moving average lines, and plots green bars for a bullish and red bars for a bearish correlation. These should be visible on each currency pair.

How to use Currency Pairs Correlation Indiator for MT4

The indicator's settings include several options that can be modified.

Traders have the ability to modify the currencies in the "symbol1", and "symbol2," fields.

You can modify the settings of the underlying moving-average lines by using fields like "MAPeriod1", MAMethod1", MAMethod2", or "MAPrice1", as well as other fields such "MAPrice1", and "MAPrice2".

The indicator's color can confirm the direction of correlation. Traders have the option to trade in the direction indicated by the correlation or use the appearance colored bars as an entry signal.

This indicator is not applicable to pairs in which the currencies being tested for correlation are either on the commodity or the term side.

Trade Setup

How to Enter?

When the Currency Pairs Correlation indicator shows a green bar, open a buy order. Place the stop loss at the support below the entry candle.

When do you want to exit?

If price action indicates a bearish reversal, close the trade immediately.

Setup for Trades

How to Enter?

When a red bar appears in the Currency Pairs Correlation indicator, open a sell order. Place the stop loss at the resistance higher than the entry candle.

When do you want to exit?

If price action indicates a possible bullish trend reversal, close the trade immediately

Conclusion

This indicator can be used only on the EURUSD pair at the moment. It could be used for other currency pairs that have the USD currency on their commodity currency side of equation.

Indicators - Download Instructions

The Currency Pairs Correlation indicator for MT4 (Metatrader 4 (MT4)) indicator is a Metatrader 4 indicator. Its purpose is to transform the accumulated historical data.

The Currency Pairs Correlation Indexator for MT4 allows you to spot patterns and peculiarities in price dynamics that are not visible to the naked eye.

This information allows traders to assume additional price movements and adjust their strategies accordingly. Click Here for MT4 Strategies

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How do you install Currency Pairs Correlation Indiator for MT4.mq4

• Download the Currency Pairs Correlation Indexator for MT4.mq4
• Copy Currency Pairs Correlation indicator for MT4.mq4 in your Metatrader Directory/experts / indicators
• Metatrader 4 Client can be restarted or started
• Choose Chart and Timeframe to test your MT4 indicator
• You can search "Custom Indicators" using your Navigator, mostly left in your Metatrader4 Client
• Right click on Currency Pairs Indicator for the MT4.mq4
• Attach a chart
• Change settings or click ok
• Your Chart contains the Indicator Currency Pairs Correlation Indiator for MT4.mq4.

How do you remove the Currency Pairs Correlation indicator for MT4.mq4 in your Metatrader Chart.

• Select the Chart in which the Indicator is running in your Metatrader4 Client
• Right-click to open the Chart
• "Indicators list"
• Select the indicator and click delete

Currency Pairs (Free Download)

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