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Correlation Panel currency pair correlation indicator

Correlation indicator Correlation Panel

Correlation   in the Forex market is the dependence of the movement of currency pairs quotations relative to each other. There is a direct (positive) correlation when the movement occurs in one direction, and the reverse (negative) correlation.

Direct correlation

Reverse correlation

In order to somehow organize this movement, a correlation factor was introduced. It ranges from z1 (complete coincidence) to -1 (absolute opposite). In the foreign exchange market, this indicator depends directly on the economic factor, the proximity of the states and the news background.

The most common are the coefficients created by mathematicians and statisticians Pearson, Spearman and Kendall. We will use them in the Correlation Panel indicator, which is an information panel that shows the relationship between currency pairs as a percentage of -100 to 100.

Correlation al-Sissi is widely used in technical analysis both to search for login signals and to determine a global trend. Strategies are also popular to trade several tools that diversify risks and increase the chance of generating income.

DaVinci Correlation Panel Settings:

Choose Correlation MethodChoosing one of three methods for calculating correlation: Pearson, Spearman or Kendall
ChooseSymbolsTypeChoosing currency pairs to display: All Market Watch – all pairs that are in the market review window (you need to understand that a lot of pairs do not fit on the chart, so it is recommended to choose only the right ones). Simbols List – couples listed by hand pairs in the Simbols List.
Simbols ListA list of pairs for analysis, point through the comma without a space.
Correlation PeriodPeriod to calculate correlation. The default is 50, which is one of the most used periods.
PriceThe price type to calculate the indicator.
Level Color ValueThe value of the correlation level is as a percentage above/below which the data will be allocated in a different color. For the inverse correlation, a minus sign is automatically put up.
Show Only High CorrelationOnly those correlation values that go beyond the level of Color Valueare displayed.
Color BackgroundThe color of the background of the graphics behind the panel.
Color CanvasThe color of the translucent substrate.
Background TransparentThe percentage of transparency of the substrate.
Color SymbolsColor to display currency pairs.
Color ValuesThe color of the correlation values.
Color Values MaxColor for values is more Level Color Value.
Color Values MinColor for values is less -Level Color Value.

As you can see, the settings of the indicator are not much and to understand its work is very simple.

To better represent the correlation, we also attach a graph-building indicator for two currency pairs along all three calculation formulas.

DaVinci Correlation Indicator Settings:

Pearson CorrelationActivation of the Pearson indicator calculation method
Spearman CorrelationActivation of the Spearman indicator calculation method
Kendall CorrelationActivation of the Kendall indicator calculation method
TimeFrameThe period of data build indicator.
Bars countNumber of recent bars to analyze
Second PairA second pair is manually assigned to calculate the data. The first is taken from the current schedule.
Indicator LevelsDisplay horizontal levels of the indicator.


This indicator is great for use in your MT4 trading terminal, eliminating the need to view similar statistics on online resources. We are sure that you will find its use.

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