Maximize Your Trading with the Correlation Trend Indicator for MetaTrader 5

Overview:

The Correlation Trend Indicator is a powerful tool for traders using MetaTrader 5. In his insightful article, "Correlation As A Trend Indicator" from the May 2020 issue of TASC, John Ehlers introduces this innovative trend indicator. It’s designed to measure the correlation between a security’s price history and the ideal trend—represented as a straight line. Ehlers explains how to leverage this indicator not only to spot the beginning of new trends but also to recognize when those trends may be failing.

Using Ehlers' method can seem a bit unconventional, especially with the asymmetric thresholds for buy and sell signals. However, it's crucial to remember that fitting an indicator to a chart can lead to misleading results. Here are some practical recommendations:

Recommendations:

Utilize the 0 line to determine if a trend is happening (either short or long).
Look for crossovers between short and long values as signals to buy or sell.

Additional Insights:

You'll find two versions of the Correlation Trend Indicator available:
The standard version.
The optimized version (indicated by "opt" in its name).
The standard version uses common coding practices, which are clear but can be slower than desired for everyday trading and testing. The optimized version aims to address this issue.
While some may express frustration over the complexity of the optimized code compared to the regular version, the results are identical. Plus, the optimized version is on average 15-16 times faster than the standard version—an essential factor when dealing with longer calculation periods!

By incorporating the Correlation Trend Indicator into your trading toolbox, you can enhance your ability to identify trends and make informed trading decisions. Give it a try and see how it fits into your trading strategy!

Maximize Your Trading with the Correlation Trend Indicator for MetaTrader 5

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