indCorrelation

Function Name: indCorrelation

Tags: Statistics

Category: Other

The Correlation Function indicator is defined as a measure of the tendency of two variables to be above or below their average at the same time.

The Correlation Function indicator calculates the frequency of price movement in the same direction and in opposite directions for 2 markets during the number of bars specified by the input Period. This frequency is indexed and plotted as a value between 1 and -1. This is used as a measure of the tendency of two markets to move in the same direction. A positive Correlation value indicates that the 2 markets tend to move in the same direction. A negative Correlation value indicates a strong tendency for the 2 markets to move in opposite directions. A Correlation value of near 0 indicates there is very little correlation (or no correlation) between the two markets.

 

Link:       http://www.investopedia.com/terms/c/correlation.asp

 

Source1	Choose any symbol as the first base. By default, the first symbol that is shown on the chart is used.
Source2	Choose any symbol as the second base. By default, the second symbol that is shown on the chart is used. If only one symbol is visible on the chart, you can choose a second symbol with Symbol Search by clicking on Other.

period
	Default Value: 5  |  Minimum: 1  |  Maximum: 9999
	Type: Numeric
shift
	Default Value: 0  |  Minimum: 0  |  Maximum: 100
	Type: Numeric