Correlation candles – indicator for MetaTrader 5

  • Platform: Metatrader5
  • Currency pairs: Any pairs, indices and metals
  • Trading Time: Around the clock
  • Recommended broker: icmarkets, XM
  • Indicator that combines rank (auto)correlation of 4 prices in to one single indicator .

    Instead of using just one price, this indicator uses the standard 4 prices: open, close, high and low, calculates its (auto) correlation ranks and combines those result into one indicator. The candle colors (“trends”) are determined based on the correlation of open to close. The rest (the highest and the lowest) are good indicators of current volatility — the presence or the lack of it.

    The correlation types supported by the indicator are Spearman and Pearson correlation. Although they are similar, the difference can be significant and some experimenting is advised to find the type that is suitable to specific trading style. Default calculation length it set to a rather “trend orientated” usage. To use it for momentum like (fast) response, set the period to shorter value(s).

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    Unlike the classical rank correlation — in this indicator “rank” does not mean the same as when the correlation is applied to independent sets of data (prices, values, …). In this case it becomes more a “trend direction” or “momentum like” and it should be used like that.

  • How to install MT5 indicator?
  • 1. On the desktop, double-click to open the MT45 trading platform software you installed.
  • 2. Click on “File” in the upper left corner – “Open Data Folder”, double-click the MQL5 folder, and double-click the Indicators folder
  • 3. Copy the metrics you need to install to the Indicators folder
  • 4. Open MT5, find “Navigator” in the display menu, then click “Technical Indicators” of “Navigator” and right click to refresh, you will see the indicator just copied.
  • 5. In the “Technical Indicators” of “Navigator”, find the indicator file just installed, double click or click manually to the chart window
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