The Pirson And Spearman Correlation Indicator works by correlating different currency pairs. The indicator is on the same calculation as the moving average. By correlating it means that the indicator will only provide signals of a certain currency pair, when the signal in all other correlated currency pairs is the same. When correlating currency pairs, you look at the currency pair that have either the same base currency or quote currency. These pairs will tend to move in the same direction at most of the times.
The indicator is very cool and keeps your trading chart neat while meeting all your needs as a trader. Actually the only thing that will appear on your trading chart are the trading signals. The Pirson And Spearman Correlation Indicator itself is displayed on a separate window below the trading chart. The Pirson And Spearman Correlation Indicator has two wave lines. One of the spearman_correlation is fast while the other is a slow moving spearman_correlation. The fast moving spearman_correlation is green in color by default while the slow moving spearman_correlation is red in color.
This indicator is responsible for providing trading signal to the forex traders. It not only provides sell and buy signals but it also provides the levels where their corresponding stop losses should be placed.
Placing orders using the Pirson And Spearman Correlation Indicator.
As a trader you should be patient enough to wait for the signals to be generated. Otherwise if you place orders haphazardly, you will find yourself making losses of which you will be to blame. The signals are the arrows that are displayed on the trading chart. This indicator is among the indicators that are very promising in terms of making profits. The signal generated by this indicator is 99% correct and rarely will you make a loss if you place a trade according to its signal.
When to place a buy order: a buy order is placed when the signal given is of a green arrow that points upwards. There is also another blue arrow that appears at the indicator chart below the trading chart.
The buy signal will always appear when the fast moving spearman_correlation wave line crosses (gets above) the slow moving spearman_correlation. However you should not rely on this since the signal is given at a small time after when the trend is confirmed.
After placing the order, you should also place a stop loss at the level indicated by the green line. When it comes to closing your order, it will depend on your set target or you can wait till a sell signal is given.
When to place a sell order: sell order is placed when the signal given is of a red arrow that points downwards. There is also another yellow arrow that appears at the indicator chart below the trading chart.
The buy signal will always appear when the slow moving spearman_correlation wave line crosses (gets above) the fast moving spearman_correlation. However you should not rely on this since the signal is given at a small time after when the trend is confirmed.
After placing the order, you should also place a stop loss at the level indicated by the red line. When it comes to closing your order, it will depend on your set target or you can wait till a buy signal is given.
Example of placing trades.
Pirson-And-Spearman-Correlation-Indicator . rar
Source : forexobroker.com
