The Spearman’s Rank Correlation Metatrader 5 Forex indicator is a technical tool that is used for statistical forex analysis as it relates to correlation.
Unlike the Stochastic indicator, the Spearman’s Rank Correlation indicator is smoother, while not lagging at the reverse points.
The indicator is used to evaluate the tightness of the correlation between the parameters.
The levels marked 1.00, 0.5, 0, -0.5 and -1.0 are critical levels that should be monitored.
Weak correlation weakness are synonymous with ratio values of 0 or lower.
Those above 0.5 but below 1.0 reveal moderate correlation tightness and those equal 1 or above indicates high correlation tightness.
Deploy the MT5 indicator for scalping, day trading and swing trading purposes.
The EUR/CHF H1 chart below displays the Spearman’s Rank Correlation Metatrader 5 forex indicator in action.
Basic Trading Signals
Buy Signal: Go long when the magenta line of the Spearman’s Rank Correlation Metatrader 5 forex indicator breaks & hovers above the zero signal level.
Sell Signal: Go short when the magenta line of the Spearman’s Rank Correlation Metatrader 5 forex indicator dips & stays below the zero signal level.
Exit buy trade: Close all buy orders if while a bullish trend is running, the magenta line of the Spearman’s Rank Correlation indicator breaks below the 0.50 level.
Exit sell trade: Close all sell orders if while a bearish trend is ongoing, the magenta line of the Spearman’s Rank Correlation indicator surges above the -0.50 level.
Tips: The Spearman’s Rank Correlation indicator performs remarkably well during ranging markets, but at the same time shouldn’t be used as a standalone technical tool.
Please use together with a trend following forex indicator.
MT5 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 5
Type: chart window indicator
Customization options: Variable (rangeN, CalculateBars, Maxrange, direction), width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: trend | correlation
Copy and paste the spearmanrankcorrelation.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)