Correlated ATR Bands | AdulariHow do I use it?
Never use this indicator as standalone trading signal, it should be used as confluence.
It is highly recommended to use this indicator on the 15m timeframe and above, try experimenting with the inverse feature and multipliers as well.
When the price is above the moving average this shows the bullish trend is strong.
When the price is below the moving average this shows the bearish trend is strong.
When the moving average is purple, the trend is bullish , when it is gray, the trend is bearish.
When price is above the upper band this may indicate a bearish reversal.
When price is below the lower band this may indicate a bullish reversal.
Features:
Purple line for bullish trend and gray line for bearish trend.
Custom formula combining an ATR and Hull MA to clearly indicate trend strength and direction.
Unique approach to moving averages and bands by taking the average of 2 types of MA's combined with custom ATR's, then multiplying these by correlation factors.
Bands to indicate possible trend reversals when price crosses them.
How does it work?
1 — ATR value is calculated, then the correlation between the source and ATR is calculated.
2 — Final value is calculated using the following formula:
correlation * atr + (1 - correlation) * nz(atr , atr)
3 — Moving average is calculated with the following formula:
ta.hma((1-(correlation/100*(1+weight/10)))*(ta.sma(source+value, smoothing)+ta.sma(source-value,smoothing))/2,flength)
4 — Bands calculation using multipliers.
Correlated
Overlay Mini Plot(s) of Correlated Asset(s)Overlay a small plot of a correlated asset of your choosing. Shrink/expand, Set vertical and horizontal position, plot multiple mini-plots via duplicate indicators with varied settings.
Plots the last X bars of any asset; including the live candle currently painting
Useful for low time frame trading when you want to see correlated asset price movement right alongside the price movement you're watching.
Useful for quick and simple comparisons; when you don't want the clutter of split screen or multi-pane view.
Useful for backtesting.
Price scale agnostic; just plots the shape of the recent price action, with several optional labels: Asset+timeframe | Live Price | Highest price over X bars | Lowest price over X bars.
Works fine with all the assets i've tested it on.
~~User inputs~~
-number of bars to paint.
-horizontal offset: plot to right X bars or to left X bars
-vertical offset: shift up or down, shrink or expand; by using 2 'spacer' inputs
-color/transparancy of candles and price labels.
-width (pixels) of candle bodies.
-choose to display price labels or not
-choose to display asset label or not
~~Tips~~
--Add several of these indicators; changing the vertical 'Shift/Shrink' settings on each to visually separate them.
--In the above chart or EurUsd, there are three indicators =>> three mini-plots overlaid: DXY, EurGbp and GbpUsd. Using the following settings for Space Above:Space Below: DXY- 0.1:4.5 | EurGbp- 1.8:1.8 | GbpUsd- 4.5:0.1
--the more you add, the more you'll have to vertically shrink the plots
© twingall
Correlative volume sum CTEHello colleagues, How much importance do you give to the volume traded in the candles to support your investments? And if it is important, you analyze the volume of the candle in the assets or correlated pairs to be certain if it is a volume of only that broker or of several?
I would like to share and collaborate with a tool that can help to see the expanded volume, appending the accumulation of the volume traded from up to 3 brokers or exchanges.
I hope this tool is helpful and allows you to make your investments with greater security.
Many times we focus and analyze a single graph, discarding very relevant details present in the correlative graphs, such as the volume between them.
A good way to complement your strategy is to wait for a volume reaction in the historical volume candlestick zones.
I am happy to be part of this community and I hope that my presence in it will be of help, greetings to all.
Ehlers Correlation Trend Indicator CTI by Cryptorhythms [CR]Ehlers Correlation Trend Indicator CTI by Cryptorhythms
📜Intro
In his article “Correlation As A Trend Indicator” in issue May 2020 of TASC, author John Ehlers introduces a new trend indicator that is based on the correlation between a security’s price history and the ideal trend: a straight line. He describes methods for using the indicator to not only identify the onset of new trends but to identify trend failures as well. He presents what looks like a simple and elegant idea for a trend-detection and mode-switching indicator.
📋Comments
Careful market selection may be the key to a correct application of the indicator. Even such barebone rules could shine with stocks like AAPL that tend to develop prolonged trends. But for others like CAT, which can keep oscillating in ranges for years, results will be much less impressive. They require a different approach. For example, you would want to buy when Correlation Trend falls significantly below zero and sell when it reaches positive values.
Therefore, it would be an interesting problem to research Correlation Trend’s ability to identify the switch to a cycle mode. That might help develop countertrend systems and
trade pullbacks. Another possible application might be to act as a system filter of change from trending mode to mean-reversion mode.
Extras
As usual when porting indicators to the library here on tradingview, I like to add some extra flare!
💠Customizable Overbought and Oversold Zones for Alert Creation
💠Bar coloration based on trade state for easy visual at a glance chart checking
💠Some basic example Entry and Exit conditions and a simple Trade State Engine to get you going creating your own strategy
Enjoy!
👍 We hope you enjoyed this indicator and find it useful! We post free crypto analysis, strategies and indicators regularly. This is our 81st script on Tradingview!
Correlation Tool [QuantNomad]It's a pretty simple indicator that allows you to calculate the stock's correlation directly in TradingView.
You can use up to 5 symbols in this indicator. You can use any timeframe and limit date range for correlation calculation.
It's a pro indicator, you can have access to it for a small fee. Link to my PRO indicators you can find in my signature.
Will be happy to hear your feedback.
- How do you want to use this indicator?
- What other features do you want in it?
Function : Multiple Correlation
This script was written to calculate the correlation coefficient (Adjusted R-Squared) for one dependent and two independent variables.(3-way)
Pearson correlation method was used with exponential moving averages as the correlation calculation method.
Use your source ( i use "close" generally ) as the dependent variable.
Inspired by this article : www.real-statistics.com
The Adjusted R-Squared coefficient is used as output, but the R-Squared coefficient is also available in the code.
Adjusted R-Squared is often used for multiple correlations.
It also gives better results in large samples.
Here is the article about the difference of the two coefficients : www.investopedia.com
I wrote this function to increase the efficiency of my Dow Factor I used before.
When my research is over, I will apply the 3-factor correlation to my scripts.
I hope that I will achieve more efficient indicators and oscillators and even strategies.
In this command, I gave a few variable values and plotted them as an example.
I hope this function is useful in your work.
Finally, you can use periods as mutable variables.
The function is recovered from integer loads.
Best regards. Noldo
SpreadTrade - Distance (ps4 ver. 2)This script implements a rebrushed distance-based pair trading strategy. In this strategy, normally they trade the difference between the prices of two instruments. This difference is also called spread. Here, however we’ll trade the difference between two time frames of one instrument. And that's the main trick. Common procedure consists of the following steps:
1. Select two CORRELATED stocks. Here we'll use the same instrument in different TFs.
2. Generate the spread by calculating the difference between the prices/instruments. For distance based pair trading, we need to (rescale the data first and then) check the distance between them.
3. Define the logic to trade the spread and generate the trading signals. In this example we’ll calculate the rolling mean and rolling standard deviation of the spread. Whenever the spread goes above a rolling mean by one standard deviation, we’ll short the spread expecting the mean reversion behavior to hold true. And whenever the spread goes below its rolling mean by one standard deviation, we’ll go long on the spread.
Mind that the meaning of the orange and blue signals depends on whether tf variable is smaller or larger than the built-in timeframe.multiplier variable, i.e. tf of the chart.
For details see analyticsprofile.com
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Correlated Market Matrix - Correlation Computer - GyromaticalCorrelated Market Matrix - Correlation Computer
Works with up to 7 markets simultaneously to find price divergences.
Study Forex pairs, stocks, crypto alt coins.
Find potential entries quicker.
Short Description:
This indicator analyzes 6 markets and one spread (or 7 and no spread) against the currently loaded instrument,
with support for complex formulas. This indicator finds positive and negative correlations intrabar and throughout
the specified time frame simultaneously. It employs a weighting system and score threshold
(everything is user-definable) and signals upon positive or negative score. Alerts are included
for intrabar and overall positive and negative correlations.
Detailed description:
This indicator analyzes 6 different markets and 1 spread (or 7 different markets if no spread) and
measures correlations between them. The squares on the background are individual
correlations (intrabar) and the circles to the right-hand side depict whether the markets have risen
or fallen in price since the start of the specified time frame (red/green or gray for neutral).
To the right of the circles you have the instrument numbers. The numbers represent the instruments you
have specified, in order. Above these numbers and circles you will find two square icons.
You will notice the left-most icon has the caption of "Overall Score +" (or -) and the right-most icon
has the caption of "Intrabar Score +" (or -). The overall score measures the correlation score from the
start of the time frame to the present time. The intrabar icon measures the correlation score of
individual candles. The scoring system implements weighting which uses scores for each individual instrument
and all scores are user-definable (positive and negative). There is also a threshold level which is user-definable,
if the score reaches or crosses this level it will trigger the aforementioned signal icons.
The analyzation time frame is decided by the user. The Correlated Market Matrix can calculate from a
given date to present (real-time), or between two specified historic dates.
You are able to represent the correlations using the close (price) of the instrument or an EMA (speed is user-adjustable).
The spread has the individual option to use EMA or close (price) separately from the other instruments.
You have the option to assign the weight of any number (0 to 100) to any instrument if the instrument is bullish.
You additionally have the option of subtracting the numbers if it is bearish (-100 to 0).
You may assign both bullish and bearish weights to each instrument at the same time to obtain maximum balance.
If you do not desire custom weighting, simply leave the weights at 1.
The negative vs positive levels are then measured, and whichever score is the strongest determines if the
square icon displays "Overall Score +" or "Overall Score -" (same for Intrabar).
"Score +" means that the score is equal to or greater than the threshold.
"Score -" means that the score is less than the threshold.
Additionally you are provided the option of visualizing the actual correlation lines. This is useful in the sense that
you may view the direction of that particular secondary instrument without actually opening its chart. The color red
implies that the correlation is falling, while green implies it is rising. Please note that due to
limitations you cannot see the actual correlation value of these lines, and also this is an experimental feature so lines
may not always appear appropriately. In testing a line may vanish momentarily here and there but it is somewhat rare.
The background squares will tell you the actual state of the correlation.
HOW DO YOU READ IT?
The numbers represent the instrument you selected in that number slot.
The circles to the left of the numbers indicate if that market is up or down since the beginning of the specified timeframe.
Red means price is down, green means price is up, gray is neutral.
The icon "Intrabar Score +" or "Intrabar Score -" indicates whether the majority of markets are over their score threshold
(negative or positive correlation) for the current candle only.
If this is "Neutral" then there is no current score.
The icon "Overall Score +" or "Overall Score -" indicated the majority of markets are over their score threshold (negative or
positive correlation) for the OVERALL time frame (start to current, or start to finish if you are not using in real-time).
If this is "Neutral" then there is no current score.
For individual candle correlations, if the secondary instrument is up and the main instrument is down, the boxes are red.
If secondary instrument is down and main instrument is up, boxes are green.
If correlation lines are red then the correlation is becoming negative, if they're green then they're becoming positive.
This does not mean there is a negative or positive correlation, only that the correlation is rising or falling.
The background squares will tell you the state of the correlation.
PLEASE NOTE:
If you are using a white or bright colored chart, click the gear icon next to the indicator name.
Select the "Style" tab. The first option "Time frame Background Color" should be adjusted to either
black or white with no transparency (take note of the slider underneath the color squares).
This will make the matrix appear correctly.
INPUT MENU
By clicking the gear icon next to the indicator name, you are presented with a host of options.
The options are as follows, in order of appearance:
- Correlation Length : Amount of bars to look back for the correlation.
- Show Correlation Lines : Chose whether to display the correlation lines or not.
- Use Rising/Falling Colors : Use rising/falling colors for correlation lines instead of unique colors.
- Instrument Source : Chose from 'Price' or process the instrument through EMA instead.
- Price Source : This source works for both "Price" source and the EMA source.
- EMA Speed : Speed of the EMA if 'Instrument Source' is set to 'EMA'.
- Use EMA on Spread 1 : Use EMA on the 'Spread Instrument 1'. If unchecked, close is used by default.
- Use EMA on Spread 2 : Use EMA on the 'Spread Instrument 2'. If unchecked, close is used by default.
- EMA Speed for Spread 1 : Speed of EMA for Spread 1 if EMA is used instead of 'close'.
- EMA Speed for Spread 2 : Speed of EMA for Spread 2 if EMA is used instead of 'close'.
- Disable Spread and use Instrument 1 as correlated market instead : By default, the indicator takes both spread
instruments and calculates the spread between each (instrument1-instrument2=spread). If this feature is enabled, the indicator
will use only the 'Spread Instrument 1' and calculate it in the same manner as the other markets.
This is useful if you do not wish to use a spread and would rather have an extra market.
- Positive Weight of Instrument (1-7/spread) : Positive weight for the instrument.
It is recommended to enter only positive numbers here. If left 0, no weight will be added to the instrument but the indicator will
signal "Score -" if all others are also 0. If left at 1, if more markets are positive than negative, the indicator will present "Score +".
- Negative Weight of Instrument (1-7/spread) : This works in the same way as positive weight except it is recommended you enter
only negative numbers here (example: -1.5, -20). This number is subtracted from the overall score. If left 0, no weight will be
added to the instrument but the indicator will signal "Score -" if all others are also 0. If left at 1, if more markets are negative than positive,
the indicator will present "Score -".
- Threshold for score to be determined : if the weighting score of the instruments is this number or greater then
the square signal icon of + (greater) or - (lesser) is triggered.
- Instrument (1-6) : This is where you select which instruments/securities you wish to analyze. This input also
supports complex formulas, same as you'd enter them on your chart.
- Spread Instrument 1 : Instrument of part 1 of spread calculation
- Spread Instrument 2 : Instrument of part 2 of spread calculation
- From Month/Day/Year/Hour/Minute : Display data beginning at this specified time.
- To Month/Day/Year/Hour/Minute : Stop analyzing data at this specified time. To have it calculate indefinitely
in real-time, then the "To" settings should be left at Month: 12, Day: 31, Year: 2222, Hour: 23, Minute: 59.
STYLE MENU
- Time frame background color : The background color of the viewing area, especially helpful for white charts where colors may become faded.
- Correlation Line (1-7) : Properties for the displayed lines (if enabled). The first two colors are for rising and falling respectively
(if "Use rising/falling colors" is enabled), the last color is the default color of the line. This last color
will also be used for neutral if "rising/falling" is enabled.
- Instrument Label (1-7,Spread) : Properties for the right-hand numbered column, denoting which line is which instrument.
- Separator (1-8) : Solid lines between instruments
- Price Circle (1-7) : Circles between labels and background colors, denoting price rise/fall.
- Score + or - : Score icon above the instrument numbers
- Fill Row (1-6, Spread) : Background colors for the matrix. Default is red and green.
Have an idea? Customized logic is available for this framework.
This is not financial advice and this indicator system does not guarantee or claim to make profit.
The signals and ideas contained within this page and indicator are provided on an as-is basis. Use at your own risk.
