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

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

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