Correlation Coefficient Modified — Indicator by racer8

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.

Release Notes:

1. yellow to orange
2. 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 a publication is governed by House Rules. You can favorite it to use it on a chart.

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

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