The Spearman Rank Corr indicator for MetaTrader 4 was initially implemented from the field of statistics.
In 1904, Charles Spearman was able to design a statistical gauge for the strength of association between two variables, which obviously became the basis of the rank correlation coefficient, and was named after its creator (Spearman’s rank correlation coefficient).
The variable that is used in the calculation is the date, not the price, meaning prices are reflected in relation with their appearance during the session under watch, thereby accumulating a link between these two variables.
The adjustable parameters includes the “rangeN, CalculatedBars, Maxrange and direction.”
Although the SpearmanRankCorr indicator has only been available recently, tweaking the values of the variables will allow chartist get best setting.
Short-term traders are advised to adopt short period length i.e. short values for the “rangeN,” while long-term traders are required to adopt long period length i.e. long values for the “rangeN” parameter variable.
The SpearmanRankCorr indicator fluctuate above and below the zero signal level.
When the SpearmanRankCorr indicator is positive, it indicates a positive relationship between surging price and date.
Howbeit, if the SpearmanRankCorr indicator is negative, it indicates a dipping price while the date continues to surge (since it is impossible to find declining dates).
This presents an extreme negative relationship. Interpreting the SpearmanRankCorr indicator is similar to those of other oscillators.
Hence, if the line of the SpearmanRankCorr indicator breaks above the zero line, a buy is considered, while a sell is in place when the line of the SpearmanRankCorr indicator breaks below the zero line.
MT4 Indicator Characteristics
Currency pairs: Any
Platform: Metatrader 4
Type: chart window indicator
Customization options: Variable (rangeN, CalculatedBars, Maxrange direction), Colors, width & Style.
Time frames: 5-Minutes, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week, 1-Month
Type: oscillator, trend
How to install the Spearman Rank Corr custom indicator in Metatrader 4?
- Download the Spearman Rank Corr indicator to your computer.
- Open your Metatrader 4 platform.
- Open the data folder from the top menu.
- Open the MQL4 folder.
- Open the indicators folder.
- Paste the indicator file in this folder.
- Restart the trading platform.
- Open any trading chart.
- Attach the indicator to the chart.