MetaTrader 4 Currency Pair Correlation Indicator Download - Free - [Trading Search] - MT4/MT5 Resources

The Currency Pair Correlation Indicator is one of the MetaTrader 4 indicators that automatically checks the correlation between currencies in various markets and presents them to traders. This trading tool uses green and red histograms to show positive and negative correlations between currency pairs in the market.

For instance, EURUSD and USDCHF have an inverse or negative correlation. The price chart uses green histograms to show relative movements in the same direction, and red histograms to show movements in the opposite direction.

Currency pair related indicator table

Bullish trend conditions for this indicator (buy position)

The EUR/USD currency pair is shown below on the 1 hour time frame. In this example, we compare EUR/USD with USD/CHF . Since the two symbols have a negative correlation, the two lines of the oscillator cross and the green histogram indicates that EUR/USD is ready for an upward move, while USD/CHF is ready for a downtrend.

Bearish trend conditions of the indicator (for selling positions)

The USD/CHF currency pair is shown below on the 15 minute time frame. In this example, we compare USD/CHF with EUR/USD . Since the two symbols have a negative correlation, the two lines of the oscillator cross, and the green histogram indicates that USD/CHF is ready for a downward move, while EUR/USD is ready for an uptrend.

SettingDescription

• ActiveLevel: Settings for straight histogram
• PassiveLevel: Negative histogram settings
• Symbol1: The first currency pair used for calculation (e.g. EURUSD)
• MAPeriod1: The moving average period of the first pair, set to 13
• MAMethod1: Set to 0 for exponential moving average
• MAPrice1: Set to 0 to calculate based on closing price
• MaAvg1: Average based on the last five candles
• Symbol2: The second currency pair (e.g. USD/CHF)
• MAPeriod2: The moving average period of the second pair, set to 13
• MAMethod2: Set to 0 for exponential moving average
• MAPrice2: Set to 0 to calculate based on closing price
• MaAvg2: Average based on the last five candles

Conclusion

The Currency Pair Correlation MT4 Oscillator is a valuable tool for technical analysts . It helps in identifying the relationship between different currency pairs. This indicator not only helps in finding effective trading opportunities, but also enhances Risk Management .