Free Forex Indicators (MT4), Trend Following Indicators

Currency Correlation Indicator

Currency Correlation Indicator applies a dual currency index to show the difference of strength/weakness between the currencies of any pair. Calculating the price index and taking a trade decision over such analysis are done by the experienced traders. But this indicator does the most of the calculation part and allows even a newbie trader to trade based on price strength analysis.

Currency Correlation Indicator can be applied to trade all kinds of forex currency pairs available in the market. However, as a scalping indicator, this tool works better on shorter timeframe charts like M5 & M15.

Currency Correlation Indicator Overview

Download the indicator and install it on your MT4 terminal. Once you’re done, your chart will transform like the following image

Currency Correlation Indicator Overview

Get: Forex No Deposit Bonus

Currency Correlation Indicator Explanation

Currency Correlation Indicator measures the strength of both currencies of the pair based on index analysis. It helps traders to have a clear view of the currency pairs and helps you to find the stronger one to buy and the weaker one to sell.

Currency Correlation Indicator Explanation

It applies a 14-day Primary Relative Index (PRI) along with Median & Typical averages for analyzing the currency strength. For a better understanding, it shows both indexes in different colors and also indicates them on a separate basis. Any index raises above its 70 level means its time for a reverse of the current trend.

This tool can be used as a standalone indicator. However, it also works better when added to other trend-following strategies.

Currency Correlation: Buy Condition

Currency Correlation Buy Parameters
  • The indicator plots a clear crossover between the two indexes
  • Enter long if the first currency index moves higher than the second one
  • Set stop loss below the current low of the market
  • Exit long/take profit whenever the index value reaches to 70 level

Also Read: RoboForex Review

Currency Correlation: Sell Condition

Currency Correlation Sell Parameters
  • The indicator plots a clear crossover between the two indexes
  • Enter short if the first currency index moves below the second one
  • Set stop loss above the current high of the market
  • Exit short/take profit whenever the index value reaches to 70 level

I have been actively trading the financial markets since April 2012. Besides trading with my personal money I am a technical analyst in a mutual fund that has Rs. 1 billion in assets under management. At my leisure, I love attending live music, traveling, and partying with friends.

Leave a Comment

About Trend Following System

Trend Following System's goal is to share as many Forex trading systems, strategies as possible to the retail traders so that you can make real money.

Risk Warning: Trading in the forex market is very risky. Thus, it is may not be for everyone. A highly leveraged position can work against the trader when the trade does not work as expected. Trading in the forex market can cause to lose a significant portion of the capital or all of the capital. It is crucial to learn about the trading and gain enough experience in the demo account before trading with real money. The trading strategies published on this website do not guarantee profit as the market is dynamic and unpredictable. The past performance of a strategy is not the indicative of future performance. Trend Following System will not accept any kind of liability or damage caused by trading the strategies published on this website.
RoboForex Welcome Bonus