CBR - USD CorrelationFundamentals
The idea for this script is based on Fundamentals.
I wanted to verify the strength/weakness of the US dollar against other major economies
This will keep me on the right side of the "trend" .. bullish or bearish ?
In short, because Fundamentals Analysis are reflected via economic updates which influences what the price will be doing for the next couple of days
I think it is fair to have an "Indy" that will look at the moving averages across these pairs, because if the dollar sentiment changes, this will be reflected across the major economies
How to use it
This is not a buy/sell entry "Indy", nor a RSI type "Indy" where I tried to calculate overbought/oversold areas..
In fact, when this indy hits anything over 5 to max ( which is 12 ) ..that is a very strong signal and should be seen as such..bearish or bullish
If you want to test it out, I would suggest use a plain chart ( naked chart ) with a 20 or 50 MA ( depending on your TF) and see how the currency pair e.g EUR/USD correlates with this indy. The default pairs are AUD/USD, NZD/USD, GBP/USD and USD/JPY, with a main chart on EUR/USD
Timeframes
1m and 5m charts, change the MA values to 3 ( short), 20 ( medium), 50 ( long) or even more, else there are too many false positives.
1H and higher timeframes works well with the current default values.
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Bitcoin momentum correlation This is a pretty simple indicator, it measures the momentum of bitcoin as compared to usd,eur,eth,dash, and ltc, which you can see in all of the blue lines. If the red line is above zero then it means the overall value of btc is going up, opposite for down. The Ema_window controls how smooth the signal is. If you shorten the Ema_window parameter and open this on higher timeframe btc charts then the zero crossing gives pretty solid signals, despite being pretty choppy. A good way to interpret this is that if all the blue lines are moving in the same direction at once without disagreement, then the value of bitcoin has good momentum.
Mildly more technically:
Momentum is measured in the first derivative of an EMA for each ticker. To normalize the different values against each other they are all divided by their local maximums, which can be chosen in the parameter window, but shouldn't make a huge difference. All the checked values are then summed, as shown in the red line. To include a value into the red line simply keep it checked. Take a look at the script, it's kind of easy on the eyes.
It's pretty handy to look at, but doesn't seem too worthwhile to pursue much further. If someone wants much more out of the script then feel free to message me.
Remember rules #1 & #2
Don't lose money.
Happy trading Indicator
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Hersheys CoCo BarsThis is my latest attempt to show price movement differences between symbols. I want to see the buying and selling pressure... is that price movement going with the market or is it moving alone? It's VERY interesting to watch this indicator and see how things play out!
In my previous versions the arrows on the chart were too much clutter, while the single row of color under the chart was not enough info. Also, I removed the calculations to build a world index because the correlation between US and world markets is a hard nut to crack, plus it took many seconds to calculate.
So here is "CoCo Bars", which clearly show price moves with or against another symbol. The default symbol is the US index SPY. The coolest thing here is there are three rows of data in ONE INDICATOR! Many thanks to user rollas for helping with that code.
"CoCo" stands for correlation coefficient, which is what I was studying when I got the idea for this project.
GREEN bars in row #1 = Symbol up, US up, Symbol up more than US
RED bars in row #2 = Symbol down, US down, Symbol down more than US
In rows 1 and 2 the color intensity is based on the biggest difference, light, medium and dark colors.
green/red colors in bottom row are a 7 period average of the sum of price changes of both symbol and index, green = positive, red = negative
Enjoy, and good trading!
Brian Hershey Indicator
Hersheys CoCo World"CoCo World" helps to answer the following question... Is this stock moving alone or with other markets? No stock is an island, so it's important to see what everyone else is doing!
With limited screen real estate, I want to see as much info as possible as I'm evaluating US equities and deciding to pull the trigger to buy and sell. My "CoCo World" indicator packs a lot of info into a small space! I got the idea when looking at some Correlation Coefficient studies, hence the name "CoCo".
First I build three series to compare percent price changes...
#1 = Stock = Your chart symbol
#2 = US Index = SPY
#3 = World Index = This is an index of the top 10 world economies using the iShares country indexes. They are weighted by GDP and then the percent price change from last to current tick are summed together. For example, the US makes up 37%, China 22%, etc.
Why use iShares instead of the world markets directly, like the China SSE or Japan Nikkei? The iShares indexes are traded live at the same time as US markets. Measuring money flow in and out of these funds should naturally reflect broad sentiment about each country.
There are Green/Red bars in the indicator space under your chart, also Green/Red background colors.
Green Bar = Stock, US and World are UP, Stock up more than US, US up more than World.
Red Bar = Stock, US and World are DOWN, Stock down more than US, US down more than World.
Green Background = positive 7 period combined average direction of Symbol/US/World
Red Background = negative 7 period combined average direction of Symbol/US/World
This indicator works great all the way down to 1-minute bars... watch for green bars at the end of down-trends and red bars signalling the end of up-trends. Use caution if entering long trades while the background is red, this means the markets are against you!
Use "CoCo World" with your other favorite indicators to get a more complete picture.
Knowledge is POWER!
Good trading, and follow me for updates!
Brian Hershey
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Correlation of chart symbol to different Index-ETF-currencyScript plots correlation of chart symbol to a variety of indexes, symbols, equities. ** Original idea was to find Bitcoin correlation, which I did not. Built in correlations are: Nikie, DAX, SPY, AAPL, US Dollar, Gold, EURUSD, USDCNY, EEM, QQQ, XLK, XLF, USDJPY, EURGBP Indicator
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