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.
You can check this
video that talks about Correlation ratio indicator: