Divergence of Correlation
This is an indicator of trading instruments' correlation. It shows the difference of price values of two symbols.
The increase in price divergence and the reduction of price divergence can be seen as signals to transactions. The indicator can be used for hedge strategies.
The indicator has a simple setup. You need to put him in the window of the traded instrument and choose settings:
- Correlated_Symbol - select the trading instrument, for which the difference of the correlation is to be calculated (symbol name is entered manually).
- Reverse - switch on inverse correlation.
- SignalSMA - select a period of the signal simple moving average.