Aquila Reale Correlations v1.1🦅 AQUILA REALE CORRELATIONS v1.1
Inter-market correlation dashboard for any two assets, with multi-timeframe analysis, spread monitoring, and regime detection.
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📊 WHAT THIS INDICATOR DOES
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Calculates the Pearson correlation coefficient between two user-defined assets across 4 timeframes simultaneously (15M, 1H, 4H, Daily) and presents the result in a single-glance dashboard.
Default configuration: XAUUSD vs WTI (FP Markets), but fully configurable for any pair — Gold/DXY, BTC/SPX, EUR/USD vs DXY, equities vs bonds, etc.
The dashboard provides:
- Multi-timeframe correlation matrix with regime classification (STRONG DIRECT / WEAK DIRECT / NEUTRAL / WEAK INVERSE / STRONG INVERSE) on 15M, 1H, 4H, and Daily
- Aggregate count to identify if the correlation regime is consistent across timeframes or in transition
- Spread analysis (ratio Asset1 / Asset2) with deviation from medium-term (EMA50) and long-term (EMA200) averages, plus configurable historical thresholds
- Regime verdict: DIRECT / INVERSE / NEUTRAL / AMBIGUOUS, declared only when ≥3 of 4 timeframes are aligned
- Pre-configured alerts for regime shifts, spread extremes, and 4H correlation crossings
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🎯 USE CASES
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1. Detect regime shifts: Know when historically uncorrelated assets are temporarily moving in lockstep, or vice versa.
2. Validate macro thesis: Confirm your inter-market reading with a numeric measure across multiple timeframes.
3. Identify spread extremes: Spot when asset relationships are stretched (e.g. Gold/Oil ratio above 40 historically signals macroeconomic stress).
4. Filter trade signals: Use the regime verdict as a context filter for other strategies and indicators.
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⚙️ SETTINGS
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- Symbols: Asset 1 and Asset 2 (any TradingView symbol)
- Correlation period: Default 50 candles (lower = reactive but noisy; higher = stable but lagging)
- Strong/Neutral thresholds: Configurable correlation cutoffs (defaults 0.5 / 0.2)
- Spread EMAs: Fast and slow EMAs applied to the asset ratio
- Historical spread thresholds: Customizable per asset pair
- Layout: 3 sections individually toggleable, 9 position options on the chart
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📌 IMPORTANT NOTES ON INTERPRETATION
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- Correlation is a STATISTICAL measure, not a directional trading signal. A strong inverse correlation does not mean "go long one and short the other" — it means the two assets are moving in opposite directions over the lookback window.
- Strong correlations across multiple timeframes suggest a stable regime; mixed readings across timeframes indicate transition or noise.
- For Gold/WTI specifically: the historical baseline correlation is weakly DIRECT (approximately +0.3 to +0.5). Strong INVERSE readings typically reflect temporary supply-side shocks affecting only one asset (e.g. geopolitical events impacting oil supply) and tend to revert over time.
- Correlation is a LAGGING indicator. A change in market regime is reflected in the rolling coefficient only after several candles. Use it for context, not for timing entries.
- The "AMBIGUOUS" verdict is informative: it tells you the correlation structure is not stable, and inter-market signals should be treated with extra caution.
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⚠️ WARNINGS AND DISCLAIMERS
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NOT FINANCIAL ADVICE
This script is for educational and informational purposes only. It does not constitute financial, investment, or trading advice. Nothing in this indicator should be interpreted as a recommendation to buy, sell, or hold any financial instrument.
NO GUARANTEE OF FUTURE BEHAVIOR
Past correlation patterns do not guarantee future behavior. Asset relationships change over time, especially in response to macroeconomic regime shifts, central bank policy changes, geopolitical events, and structural market changes.
USE AT YOUR OWN RISK
Trading financial instruments (stocks, forex, crypto, futures, CFDs, commodities) carries a high level of risk and may not be suitable for all investors. Before making any trading decision you should carefully consider your investment objectives, level of experience, and risk appetite. You may sustain a loss of some or all of your initial capital.
NOT A STANDALONE SYSTEM
This indicator does NOT generate buy/sell signals. It provides context for macro analysis. Always combine it with your own technical analysis, fundamental analysis, and proper risk management.
DO YOUR OWN RESEARCH
Always cross-check signals against multiple tools and your own market analysis. Do not rely on a single indicator for trading decisions. Past performance shown in any chart or example is not indicative of future results.
DATA LIMITATIONS
Correlation calculations rely on accurate price data from the broker/exchange feed. Results may vary across different data providers. Volume data on forex and CFD instruments comes from individual brokers and may not reflect true market activity.
NO AFFILIATION
The author is not affiliated with TradingView, any broker, exchange, or financial institution. This script is independent and provided free of charge.
LIABILITY
The author shall not be held liable for any loss or damage, including but not limited to financial losses, arising from the use of this indicator. By using this script you accept full responsibility for your trading and investment decisions.
PAPER TRADE FIRST
Always test any indicator and the strategies built around it on a demo account or with paper trading before risking real capital.
By using this indicator you acknowledge that you have read, understood, and accepted all the above terms.
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💬 FEEDBACK
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This is v1.1, the first public release. Feedback is welcome — please leave a comment if you find bugs, have suggestions, or want to share your results with different asset pairs.
Happy charting! 🦅 Born to fly, born to dare.
Индикатор Pine Script®













