Here's a cool idea for an indicator that would go very well with just about every correlation strategy I've read here at the FF. I hope you guys like it too:
Object: To show the correlation in PA between candles of a main chart and those of another currency within the same TF.
Say you're watching the EUR/USD on H1. With the indicator you have selected GPD/USD as your second pair. Just to the right of the E/U candle (the main chart you are watching) there is a small arrow tracing up and down, showing where the PA is currently at within the same candle for the second pair.
Next to this small arrow there is a reading in pips, showing the divergence of the 2 currencies. Ideally, this arrow/number combo should change red if the divergence is negative and blue if positive. So if it showed 'blue arrow/22', that would indicate that the second pair (G/U in this example) was 22 pips divergent (and long) of where the E/U pair was on the same H1 candle at the same time.
Wish list:
1. It should work with any pair offered by the broker, and work on any time frame.
2. The arrow & font size should be adjustable.
3a. There should be an audible alert set to the desired divergence in pips.
3b. The direction of the alert should be selectable: Long Divergence, Short Divergence, or Either.
4. The name of the second pair should be visible within the arrow body, like so: "<<=GPD/USD== 22 pips" (without the "" symbols).
I think this would be a very useful tool for any correlation strategy, what do you guys think?
Object: To show the correlation in PA between candles of a main chart and those of another currency within the same TF.
Say you're watching the EUR/USD on H1. With the indicator you have selected GPD/USD as your second pair. Just to the right of the E/U candle (the main chart you are watching) there is a small arrow tracing up and down, showing where the PA is currently at within the same candle for the second pair.
Next to this small arrow there is a reading in pips, showing the divergence of the 2 currencies. Ideally, this arrow/number combo should change red if the divergence is negative and blue if positive. So if it showed 'blue arrow/22', that would indicate that the second pair (G/U in this example) was 22 pips divergent (and long) of where the E/U pair was on the same H1 candle at the same time.
Wish list:
1. It should work with any pair offered by the broker, and work on any time frame.
2. The arrow & font size should be adjustable.
3a. There should be an audible alert set to the desired divergence in pips.
3b. The direction of the alert should be selectable: Long Divergence, Short Divergence, or Either.
4. The name of the second pair should be visible within the arrow body, like so: "<<=GPD/USD== 22 pips" (without the "" symbols).
I think this would be a very useful tool for any correlation strategy, what do you guys think?
" Average traders look to the left, great traders look to the right."