Currency Index - based on Correlation Coefficient

8 Haz 2020

The script is calculating the correlation between the current pair and the corresponding indexes and then displays the driving index based on the higher correlation.

for example: on EURUSD - calculates the correlation between EURUSD with the USD index and the correlation between EURUSD with the EUR index and then displays the winning/driving index.

- the arrows at the bottom are showing when both indexes are going in the same direction
- there are options to show divergences on the winning index
- option to display either the correlation or the winning index
- and option to be able to use while in replay mode for back testing, based on the last close to avoid repainting
- option for the length of the correlation
- the last color of the driving index is related to the index that is being displayed where:

AUD - red
CAD - yellow
CHF - grey
EUR - green
GBP - orange
JPY - magenta
NZD - dark blue
USD - light blue

- it works automatically on all the major pairs
- the last 4 options are for finding divergences between the price and the index

17 Haz 2020

Sürüm Notları

- fixed a bug from the previous version: even though the colors and correlations were correct ....the driver index displayed was always the second one .... the inverse quote currency index.
- as the base currency index has values around 7 and the inverse quote currency index had values around 0.14 ..... displaying both on the same chart would look bad because of the scale difference....
as a result of that and some pinescript limitations, i have normalized the inverse quote currency index, based on the min and max values of the quote so they get displayed nicely

- the Driving index will have a circle/dot in the same color of the index plotted on top of the last value

- I am not super happy about the way the divergence works and will get revamped soon

25 Haz 2020

Sürüm Notları

I have updated the divergences. It now displays regular and hidden divergences on each index separately. Calculations are made between each index and the highs/lows of the pair.

- regular bullish divergence = green line
- hidden bullish divergence = 50% transparent green line
- regular bearish divergence = red line
- hidden bearish divergence = 50% transparent green line

- the background of the labels have the same color as the index that the divergence is referring to

25 Haz 2020

Sürüm Notları

-Added labels