OPEN-SOURCE SCRIPT
Correlation Coefficient Modified
Updated
This indicator is based on correlation coefficient (CC).
It improves upon CC by smoothing it out using an sma.
The result is a much smoother and much more accurate reflection between the correlation of 2 instruments.
It improves upon CC by smoothing it out using an sma.
The result is a much smoother and much more accurate reflection between the correlation of 2 instruments.
Release Notes
1. yellow to orange2. Area to columns
Release Notes
blue - weak correlation*yellow - moderate correlation*
red - strong correlation*
*Positive or negative
Release Notes
Changed default settings from (3,100) to (2,500)... improves accuracy!Added indicator level lines...to improve visuals, makes it easier to see how close to the 30 level the indicator is.
;)
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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