Find the correlation between OBV and price.
Basically, they should be correlated, but sometimes they are inversely correlated (less than -0.4).
It was released because it seems to be in a phase for some reason.
When the inverse correlation is over, it is possible to think about how to buy and sell for the time...
Correlation amongst assets is the degree to which they move in tandem. This indicator measures correlation between different assets. Why is that important?
To any investor diversification is a very important technique for reducing risk. The problem is that most misunderstand it. Most people tend to think diversification is achieved simply by investing in a...
A simple script to display how correlated the current ticker is to Bitcoin.
Inputs are the number of bars to check correlation for (default 10) and the the ticker to use for BTC comparison (default is BITFINEX:BTCUSD)
Values of 1 are highly correlated (i.e. bitcoin moves up, so does your current ticker), values of -1 are inversely correlated (i.e. bitcoin moves...
The Power Law Correlation Indicator is an attempt to chart when a stock/currency/futures contract goes parabolic forming a upward or downward curve that accelerates according to power laws.
I've read about power laws from Sornette Diedler ( www.marketcalls.in ). And I think the...
this script by RichardoSantos
Power oscillator to discern what currency's are stronger/weaker.
added option to use a smoothed source(close) for pooling the change, giving longer term directional bias, note that this causes lag in the results as MA's turn slower than price.
I added currency labels and changed line color only.
This gives you the ability to track multiple tickers correlation aspects compared to the ticker you are currently viewing.
You can plot the background color and also shapes above the candles.
I personally only see the use of negative correlation to be of much use as most moves that have a heavy negative correlation with other largecaps are likely to get faded by...
A simple Correlation Indicator initially configured for Crypto Trader use (but other markets can use this too).
It plots the correlation between the current chart (say BTCUSD ) versus 4 user-definable indices, currency pairs, stocks etc.
By default, the indicator is preconfigured for:
Dow Jones Index (DJI),
Standard & Poor 500 Index (SPX) ,...
This 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...
This script utilized some new functions in Pine Script, which compares the correlation between the current symbol to a basket of crypto indexes that are listed on the FTX exchange.
By tracking these indexes we can gauge the reaction across markets that have a different market cap. By that I mean we can have a better idea about where the money is flowing into a...
I found this useful tool among the indicators but it wasn't doing the correlation study correctly.
Everything in markets, with only a few exceptions, are rising in value over time and therefore trended to time. The simplest method I found is to use link relative or first difference detrending, before calculating a correlation between assets.
I also updated it to...
Estimating the LSMA Without Classics Parameters
I already mentioned various methods in order to estimate the LSMA in the idea i published. The parameter who still appeared on both the previous estimation and the classic LSMA was the sample correlation coefficient. This indicator will use an estimate of the correlation coefficient using the standard score thus...
This indicator is intended to complement the Synergy indicator. It provides the following statistics:
A percentage showing how often the two assets move in the opposite direction over a given lookback period.
Similarly, another percentage showing how often the two assets move in the same direction over the same lookback period.
This indicator was developed for use in an investigation/tutorial using Pine Script to analyse Gold and US Dollar Index correlation.
The first indicator shall measure the percentage change between the open and close of each bar and compare it to the same percentage change of an alternative asset. Additionally, we shall color the background when the two...
Correlation amongst assets is the degree to which they move in tandem.
Diversification is a technique for reducing risk. Most people tend to think this is achieved simply by investing in a variety of assets instead of just a few. This is wrong.
Proper diversification is achieved when you reduce the correlation between the assets in your portfolio.