The Spearman Signal Metatrader 5 forex indicator is a technical tool that consists of the “Spearman rank correlation” along with “Pearson correlation”.
Generally speaking, correlations are useful in finding trend directions for a variety of markets.
There are 22 different prices that users can select from when using the Spearman Signal MT5 forex indicator.
In addition, users can select between floating levels or fixed levels (as a means of determining over-bought and over-sold levels).
Correlation on the Spearman Signal forex indicator ranges from -1 to 1:
- 1 is tagged a perfect positive correlation – when the changes are precisely the same
- 0 is tagged a no correlation state
- -1 is labelled a perfect negative correlation – when the changes are precisely the opposite
The EUR/JPY H1 chart below displays the Spearman Signal Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the lime green cloud of the Spearman Signal Metatrader 5 forex indicator outlines the lower part of the ascending indicator’s silver line.
Sell Signal: Go short when the pale violet red cloud of the Spearman Signal Metatrader 5 forex indicator outlines the upper part of the descending silver line of the indicator.
Exit buy trade: Close all buy orders if while a bullish trend is ongoing, the silver line of the indicator breaks below the lime green dotted floating line.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the silver line of the indicator breaks above the pale violet red dotted floating line.
Tips: The information provided by the Spearman Signal MT5 forex indicator is very useful to all kind of currency traders, especially to day traders and scalpers who wish to take profits by the close of the day’s trading session.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (Rank period, Correlation type, Price to use, Floating levels look back period ( <0 for fixed levels, 0 to use), Floating levels up level %, Floating levels down level %), Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Copy and paste the Rank_sautopcorrelation.ex5 indicator into the MQL5 indicators folder of the Metatrader 5 trading platform.
You can access this folder from the top menu as follows:
File > Open Data Folder > MQL5 > Indicators (paste here)