Correlation ratio Indicator



What is the Correlation ratio?

Correlation ratio (corr indicator) measures the most recent price movement versus price movement in the same period according to the historical data.
How Correlation ratio works?
It compares price move in the last few price bars defined by the parameter "corrLen" versus the historical data and plots the correlation ratio.
Correlation ratio values fall within the range zero to one. Extreme values in the correlation ratio indicate a significant deviation from usual price moves in the asset. It is a statistical measure, not a technical indicator.
 However in trading, when the correlation ratio reaches an extreme level, price reversal or consolidation is expected.
Deviations from normal price behaviour indicate an overbought or oversold market condition. Thus it can be used for counter-trend trading and profit booking. It works well in conjunction with other technical indicators
To use Correlation ratio indicator download it from HERE, then place it at VertexFX VTL directory:
C:\ProgramData\VertexFX Client Terminals\"Company name"\VTL10\Local VTL Scripts

Then right click on the tree and select refresh or restart your client station and you will find under VTL local scripts in your client terminal.

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