About the Correlation Forex Indicator
The Correlation Forex indicator for MT4 measures the real-time relationship between EUR/USD and USD/CHF.
It highlights how the two pairs move relative to each other, helping traders identify when movements are aligned or diverging.
Traders know that when EUR/USD rises, USD/CHF often falls, and vice versa.
The indicator visualizes this relationship, making it easier to plan trades that take advantage of currency correlation.
This tool is particularly useful for strategies that rely on hedging, pair trading, or confirming trade setups across correlated pairs.
By tracking correlation in real time, traders can avoid entering conflicting positions and enhance overall trade accuracy.
Free Download
Download the “correlation-between-usdchf-and-eurusd.mq4” MT4 indicator
Key Features
- Displays correlation between EUR/USD and USD/CHF in real time.
- Helps identify inverse or direct pair movements.
- Supports correlation-based trading strategies.
- Visual representation simplifies complex pair relationships.
Indicator Chart
The Correlation Forex indicator below illustrates the real-time connection between EUR/USD and USD/CHF.
The chart highlights moments of strong negative correlation, where one pair rises as the other falls, and periods of weakening correlation where movements may become less predictable.
By observing correlation trends, traders can avoid conflicting positions and improve the probability of trade success.
Guide to Trade with the Correlation Forex Indicator
Buy Rules
- Enter a buy on EUR/USD when the correlation shows a strong negative relationship with USD/CHF.
- Confirm that EUR/USD is showing bullish momentum or price action.
- Use the correlation signal to avoid entering USD/CHF simultaneously in the opposite direction.
- Enter the trade at the close of the confirming candle.
Sell Rules
- Enter a sell on EUR/USD when the correlation shows a strong negative relationship with USD/CHF.
- Confirm that EUR/USD is showing bearish momentum or price action.
- Use the correlation signal to avoid entering USD/CHF in the opposite direction.
- Enter the trade at the close of the confirming candle.
Stop Loss
- Place the stop loss slightly beyond a recent support level for buy trades.
- Place the stop loss slightly above a recent resistance level for sell trades.
- Adjust stop distance based on timeframe and volatility.
- Exit early if correlation breaks down or moves against your position sharply.
Take Profit
- Close trades when EUR/USD reaches a nearby support or resistance level.
- Exit if the correlation weakens or reverses unexpectedly.
- Take partial profits when the first sign of divergence appears.
- Optionally, let trades run if the correlation remains strong and trend momentum continues.
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 and 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.
Download Now
Download the “correlation-between-usdchf-and-eurusd.mq4” Metatrader 4 indicator
FAQ
Why monitor the correlation between EUR/USD and USD/CHF?
These pairs often move inversely due to the USD component in both.
Tracking correlation helps traders spot opportunities and avoid conflicting trades.
Can this indicator be used for other pairs?
While it is optimized for EUR/USD and USD/CHF, the concept can be applied to other correlated pairs using manual comparison or custom correlation tools.
Does the indicator give trade signals?
It does not provide direct buy or sell arrows.
It is a tool for analyzing pair relationships, which traders use alongside price action or other indicators for entries.
Summary
The Correlation Forex indicator is a practical tool for monitoring the relationship between EUR/USD and USD/CHF in real time.
It helps traders align trades with market behavior, avoid conflicting positions, and make more informed decisions.
By visualizing correlation trends, traders can improve entry timing, risk management, and strategy efficiency.
