The Spearman Correlation Forex indicator for Metatrader 4 appears as an oscillator and provides great trend trading signals for any currency pair.
The indicator appears as buy & sell signal arrows + colored lines in the bottom window of the trading platform.
Buy & Sell Trade Example
- Enter a long trade when the blue buy arrow gets printed on the chart.
- Enter a short trade when the yellow sell arrow gets printed on the chart.
For scalping and day trading, the indicator performs best during the London and New York trading sessions.
The Spearman Correlation Forex indicator can be easily combined with the Oracle Direction indicator.
The indicator works equally well on all currency pairs (majors, minors, and exotic) and shows promising results if used correctly.
Free Download
Download the “pearson & spearman_smooth.mq4” indicator for MT4
Indicator Chart (EUR/USD H4)
The picture below shows the Spearman Correlation Forex mt4 indicator in action on the trading chart.
After you downloaded and installed the indicator (mq4 or ex4 format) to the trading platform, it should look like the image as shown above.
Trading Tips:
Feel free to use your own favorite trade entry, stop loss and take profit method to trade with the Spearman Correlation Forex indicator.
As always, trade in agreement with the overall trend and practice on a demo account first until you fully understand this indicator.
Please note that even the best trading indicator cannot yield a 100% win rate over long periods.
Indicator Specifications & Inputs:
Trading Platform: Developed for Metatrader 4 (MT4)
Currency pairs: Works for any pair
Time frames: Works for any time frame
Trade Style: Works for scalping, day trading and swing trading
Input Parameters: Variable (inputs tab), color settings & style
Indicator type: Signals
Does the indicator repaint? No.
Spearman Correlation & Moving Average Trend Dashboard MT4 Day Trading Strategy
This day trading strategy combines the Spearman Correlation Forex Indicator for MT4 with the Moving Average Trend Dashboard Indicator for MT4.
The Spearman indicator identifies short-term trend momentum through buy and sell arrows, while the dashboard confirms the overall trend across multiple timeframes.
By combining these two tools, traders can enter high-probability trades aligned with both immediate momentum and broader trend direction.
This strategy works best on M15 and H1 charts, making it ideal for day traders who want structured trades lasting a few hours.
It is suitable for major currency pairs such as EUR/USD, GBP/USD, USD/JPY, and AUD/USD.
Buy Entry Rules
- Confirm that the Moving Average Trend Dashboard shows a majority of blue buy arrows across timeframes.
- Wait for a blue buy arrow from the Spearman Correlation indicator on the chart.
- Enter a long trade at the close of the candle where the blue arrow appears.
- Set a stop loss below the recent swing low or 20–25 pips, depending on volatility.
- Take profit at 40–60 pips or when a red sell arrow appears on the dashboard or Spearman indicator.
Sell Entry Rules
- Confirm that the dashboard shows a majority of red sell arrows across timeframes.
- Wait for a yellow sell arrow from the Spearman Correlation indicator on the chart.
- Enter a short trade at the close of the candle with the yellow arrow.
- Place a stop loss above the recent swing high or 20–25 pips.
- Take profit after 40–60 pips or when a blue buy arrow appears on the dashboard or Spearman indicator.
Advantages
- Combines short-term momentum and multi-timeframe trend confirmation.
- Helps filter out false signals and improves trade accuracy.
- A visual dashboard makes trend alignment easy to monitor.
- Suitable for multiple currency pairs and trading sessions.
Drawbacks
- Requires patience to wait for both Spearman and dashboard confirmations.
- Trades may be missed if the arrows appear only briefly or slightly delayed.
- Not suitable for very short-term scalping due to the multi-timeframe confirmation requirement.
Case Study 1 – EUR/GBP, M15 Chart
During the London session, the Moving Average Trend Dashboard showed most timeframes with blue buy arrows, indicating a bullish trend.
Shortly after, the Spearman Correlation indicator printed a blue arrow at 0.8725.
A buy trade was entered at 0.8726 with a stop loss at 0.8705 and a take profit at 0.8760.
Over the next two hours, the price moved in the expected direction, achieving a +34 pip gain.
Case Study 2 – USD/CAD, H1 Chart
During the New York session, the dashboard displayed red sell arrows across the majority of timeframes, confirming bearish conditions.
The Spearman indicator printed a yellow sell arrow at 1.3340.
A short trade was opened at 1.3338 with a stop loss at 1.3355 and a take profit at 1.3295.
Price fell steadily over three hours, resulting in a +43 pip profit.
Strategy Tips
- Focus on high-liquidity pairs for tighter spreads and better execution.
- Trade during active sessions, such as London and New York, for stronger trends.
- Consider using a trailing stop once the price moves 50% toward the target to lock in profits.
- Always confirm that both the Spearman indicator and dashboard signals align before entering a trade.
This Spearman Correlation and Moving Average Trend Dashboard MT4 strategy provides a disciplined framework for day trading.
By combining immediate momentum signals with multi-timeframe trend confirmation, traders can enter trades with higher probability and manage risk effectively across different forex pairs.
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Download the “pearson & spearman_smooth.mq4” indicator for Metatrader 4
