The indicator is a simplified version of TiModel Correlation.
It is developed for currency traders that use multicurrency market analysis. It suits for intraday trading (М1, М5) and for long term trading (Н1, D1).
The indicator does not redraw its history values and the value on the zero bar. Due to using normalization methods it works with all markets and instruments.
A trend pattern is formed based on the quotes. It is displayed on the chart as a broken line. Pattern dynamics can be adjusted by setting the appropriate threshold value in the indicator settings.
Next, based on the final pattern (not the bars), using the correlation coefficient, the currency pairs that correlate best with the traded symbol are selected and displayed on the chart.
The pattern is a filter that displays only significant price movements, therefore the search for the most correlated pairs is more accurate. This algorithm is the most important point of the indicator. This distinguishes it from other technical products that use correlation methods and multicurrency analysis.
- LengthSample, bars - the length of historical data in bars.
- Threshold, pips - the pattern dynamics (threshold) in points.
- Recommended Threshold, pips. This parameter is dynamic, it varies and depends on the symbol and the history length.
- Green - the color of the traded instrument.
- Yellow - the best correlated pair.
- Orange - the symbol with the correlation coefficient below that of the 'yellow' pair.
- Red - the symbol with the correlation coefficient less than that of the 'orange' pair.
- The correlation coefficient is calculated modulo, i.e. charts both with a positive correlation coefficient and with a negative one are selected.
- The list of analyzed symbols: EURUSD, GBPUSD, EURGBP, EURAUD, EURJPY, EURCAD, USDCHF, EURNZD, AUDUSD, USDJPY, NZDUSD, GBPJPY, GBPAUD, GBPCHF, GBPCAD, GBPNZD, AUDJPY, AUDCAD, AUDNZD, NZDJPY, CADJPY.
- The threshold value has an impact on the number of break points. The smaller the threshold, the more often the indicator will draw lines, and vice versa.