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 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.
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
- 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
- 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
