OPEN-SOURCE SCRIPT
Market Correlation Analysis
Market Correlation Analysis is an indicator that measures the correlation of any two instruments.
To express price changes in a way that is comparable, this indicator uses a percentage of the ATR as a unit.
User Inputs:
Other Symbol - the symbol which we want to compare with the symbol of the main chart.
ATR for Price Movement Normalisation - I recommend high values to get the ATR more stable across time - if the ATR drastically changes, the indicator will register that as a price movement, because the unit in which price movements are measured itself changed by a lot. However, with higher values the ATR is stable and, in my opinion, more reliable than simply a percentage change of the current price.
Correlation Length - this is the number of bars for which the correlation coefficient will be calculated.
About The Indicator:
Market Correlation Analysis expresses the price changes of both instruments in question on the same histogram.
By default, the price changes that represent the instrument of the main chart are expressed with thinner bars of stronger colour, while the price changes that represent the other instrument are expressed with much thicker bars, which are of more pale colour.
The correlation coefficient is not expressed on the histogram, as it has a different scale. Therefore, it is only showed as a number.
I hope this indicator can make it easier to understand just how much two instruments have been similar to one another over a certain period of time. The possibility to see the correlation for any given time frame can give information that very specific to any trading style.
To express price changes in a way that is comparable, this indicator uses a percentage of the ATR as a unit.
User Inputs:
Other Symbol - the symbol which we want to compare with the symbol of the main chart.
ATR for Price Movement Normalisation - I recommend high values to get the ATR more stable across time - if the ATR drastically changes, the indicator will register that as a price movement, because the unit in which price movements are measured itself changed by a lot. However, with higher values the ATR is stable and, in my opinion, more reliable than simply a percentage change of the current price.
Correlation Length - this is the number of bars for which the correlation coefficient will be calculated.
About The Indicator:
Market Correlation Analysis expresses the price changes of both instruments in question on the same histogram.
By default, the price changes that represent the instrument of the main chart are expressed with thinner bars of stronger colour, while the price changes that represent the other instrument are expressed with much thicker bars, which are of more pale colour.
The correlation coefficient is not expressed on the histogram, as it has a different scale. Therefore, it is only showed as a number.
I hope this indicator can make it easier to understand just how much two instruments have been similar to one another over a certain period of time. The possibility to see the correlation for any given time frame can give information that very specific to any trading style.
開源腳本
秉持TradingView一貫精神，這個腳本的創作者將其設為開源，以便交易者檢視並驗證其功能。向作者致敬！您可以免費使用此腳本，但請注意，重新發佈代碼需遵守我們的社群規範。
免責聲明
這些資訊和出版物並非旨在提供，也不構成TradingView提供或認可的任何形式的財務、投資、交易或其他類型的建議或推薦。請閱讀使用條款以了解更多資訊。
開源腳本
秉持TradingView一貫精神，這個腳本的創作者將其設為開源，以便交易者檢視並驗證其功能。向作者致敬！您可以免費使用此腳本，但請注意，重新發佈代碼需遵守我們的社群規範。
免責聲明
這些資訊和出版物並非旨在提供，也不構成TradingView提供或認可的任何形式的財務、投資、交易或其他類型的建議或推薦。請閱讀使用條款以了解更多資訊。