The Correlation Forex MT4 indicator displays correlation between the EUR/USD and USD/CHF pair in real-time.
Currency traders are well aware of the fact that when the Euro/U.S. dollar pair is moving up, the U.S. dollar/Swiss Franc pair is moving down.
The correlation indicator shows you how correlated both pairs are at any given moment.
Some forex trading strategies and systems take advantage of the correlation between 2 currency pairs.
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Indicator Chart (EUR/USD D1)
The EUR/USD Daily chart below displays the Correlation Metatrader 4 Forex indicator in action.
Basic Trading Signals
No trading signals from the Correlation MT4 forex indicator.
Currency Correlation and Elite Pro Scalper MT4 Strategy
This MT4 strategy combines the strengths of two tools.
The first is the Correlation Forex MT4 Indicator, which shows the real-time relationship between EURUSD and USDCHF.
The second is the Elite Pro Scalper Indicator, which plots blue arrows for buy signals and red arrows for sell signals.
Together they give a clear view of market strength and direction.
This combination works well for short term trading and intraday setups.
It is suitable for beginners and experienced traders because signals are visual and easy to read.
The best time frames are M5, M15 and M30.
The logic behind the method is simple.
EURUSD and USDCHF often move in opposite directions.
When the correlation indicator confirms a strong inverse correlation and the Elite Pro Scalper prints an arrow in the same direction as price momentum, the probability of a clean move increases.
This improves timing and reduces false entries during flat periods.
The strategy is best used during active sessions such as London and New York.
Buy Entry Rules
- The Correlation indicator shows a strong inverse relationship between EURUSD and USDCHF.
- EURUSD shows upward momentum while USDCHF loses strength.
- The Elite Pro Scalper prints a blue arrow on EURUSD.
- Enter a buy position at the close of the signal candle.
- Place the stop loss below the recent swing low.
- Take profit at a fixed 15 to 30 pip target or at the next resistance level.
Sell Entry Rules
- The Correlation indicator confirms a strong inverse relationship between the two pairs.
- EURUSD loses strength while USDCHF gains momentum.
- The Elite Pro Scalper prints a red arrow on EURUSD.
- Enter a sell trade when the candle closes.
- Place the stop loss above the recent swing high.
- Take profit at a 15 to 30 pip target or the next support level.
Advantages
- Clear buy and sell signals that are easy to interpret.
- Correlation confirmation filters many false scalping entries.
- Good for fast trading and active market periods.
- Works well on low time frames.
- Simple rules suitable for all experience levels.
Drawbacks
- Not ideal during extremely low volatility.
- Signals can appear frequently, which may overwhelm new traders.
- Correlation conditions can shift quickly during news events.
- Requires disciplined risk management.
Case Study 1
During the London open, EURUSD started climbing steadily while USDCHF weakened.
The Correlation indicator showed a strong negative relationship between the two pairs.
A blue arrow printed on EURUSD and the buy signal aligned with the correlation reading.
A long position was taken and the stop loss was placed under the nearest swing low.
The move continued for 28 pips before reaching the target.
The signal was clean and there was little drawdown because both indicators confirmed the direction.
Case Study 2
Later in the New York session, EURUSD began to fall from a resistance zone.
The correlation between EURUSD and USDCHF strengthened again.
USDCHF gained momentum while EURUSD printed a red arrow from the Elite Pro Scalper.
A sell trade was taken at the candle close.
Price dropped smoothly for about 32 pips before hitting the take profit.
The strong correlation helped confirm that the reversal had strength and was not a short lived retracement.
Strategy Tips
- The Correlation Forex MT4 indicator displays the relationship between EURUSD and USDCHF in real time. Use this reading as your first filter.
- Only take trades when the Elite Pro Scalper arrow matches the direction shown by the correlation trend.
- Stick to active sessions for cleaner movement.
- Avoid entries just before major news because correlation can flip quickly.
- Use a fixed pip target to keep consistency in results.
- Review past sessions to understand how correlation behaves during trend phases.
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Download the “correlation-between-usdchf-and-eurusd.mq4” Metatrader 4 indicator
MT4 Indicator Characteristics
Currency pairs: EUR/USD and USD/CHF
Platform: Metatrader 4
Type: Chart pattern indicator
Customization options: Variable (currency) Colors, width & Style.
Time frames: 1-Minute, 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: correlation
