So we know that some currencies correlate (or are negatively correlative) to some degree and can be used to confirm or predict movements.
This indicator basically puts it all on one scale (from -1 to 1, I put the max to 1.2 so you can see the graphs without the labels getting in the way). I've coded it so that it's fairly easy to change the currency or other commodity as you see fit.

Just a quick note, to get colours and labels, add the indicator to a random pair and then drag your target pair onto the chart and if you want to change parameters delete the indicator and add it again. If someone wants to fix it if that's possible post changes up here.

Any ideas for improvement can be posted here too.

Version 1.1: Details in the third post

Version 1.2: Details in the fourth post (thanks to spiritbreezer for the suggestion).

Attached Images

CrossCurrency.jpg (53.1 KB, 1199 views)

Attached Files

	CrossCurrency.mq4 (4.0 KB, 153 views)
	CrossCurrencyV1.1.mq4 (4.5 KB, 113 views)
	CrossCurrencyV1.2.mq4 (5.5 KB, 159 views)

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How to use it?
Please give us some explaination.
Thanks in advance.

Just add it to whichever chart you want with the pairs you want then you can use it in a couple ways looking for signals or confirmation such as looking for when pairs cross each other or when a pair that is generally ahead of another currency begins to make a significant move.

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Code is in first post. Released v1.1, now you can use a simple, exponential, smoothed or linear weighted moving average if you want. This is a comparison with a couple pairs left out for a bit of clarity. You can make both charts on v1.1 by the way; I've added stuff, not taken it away.

If you want to see any more pairs on here just let me know.

Attached Images

CC2.GIF (18.5 KB, 1184 views)

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Now you can show MACD lines (as suggested by spiritbreezer). Only problem is that sometimes MACD from other periods can be comparatively high. I checked with MACD, on those currencies, it's not an error.

Attached Images

CC1.2.GIF (5.7 KB, 985 views)

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good idea hope we can find correlation between them

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Forex Indicators Collection

Very helpful tools for some kind of hedge trading. Such as EUR/USD Vs. USD/CHF.
Thank you.

Hi great indicator, might be what I need. What I am looking for is something to calculate when 3 pairs are the best time to hedge each other like

BUY EURGBP 1.0 LOT
BUY GBPUSD 0.67 LOT
SELL EURUSD 1.0 LOT

Entering these 3 together will perfectly protect you from a lose untill overall profit is up. But when to enter them is CRITICALLY for profit to occur.

Hope you could code an indicator that might help this

Yes I had hedging in mind when I thought of this indicator but I don't think I can programme something that's smart enough to say, "Okay currency x is lagging y bars behind z. What I can do though is maybe calculate what prices should be (e.g. EUR/USD 1.4871, USD/JPY 108.24 so EUR/JPY should be 1.4871*108.24 = 160.96). Just tell me which pair sets you want to see and I'll make it so.

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I just imagine this (about hedge trading):
The key player on forex trading was Banks, see their financial report you will find they almost got profit year after year from forex trading.
With fully trained staff, iron-clad manager, and unlimited resources (compare than us), any small disturbance in cross currency, small unbalance, will be detected in their central monitoring (and calculating too) server, and signalling them to make profit from this cross currency disturbance (I don't know how).
Some article in 'Market Wizard' will give you a better view of this imagination.
Compare than us, individual (forex) trader, it's hard to make profit from hedge trading with fixed rule like that, but let's keep our hope, some day we will overcome, like David had overcome Goliath.

Cheers,
ellict

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