1. The waves shows the slope of the curve. The front one = 3 periods, back one = 2 periods, difference = white area.
2. The moving lines shows the curve correlation between 2x 2 time frames (adjustable on the settings) on 2 periods lookback.
2.1 Theres few regions of high correlation, lines are at (absolute values) 0.5, 0.75, 1
3. On the top there's the curve -> if falling since 1 period = red, else green.
4. Diamonds shows : if correlation is in the strong correlation area and slope is falling or rising : red or green diamond.
This tool could be interesting to have an idea if there's strong correlation between timeframes instead of watching 4-5 different timeframes !
-> If rising/falling and one of the correlation curve is in the strong correlation area -> then diamond !
- Possible to plot the curve choosing the timeframe.
-> 4 possible correlations of this indicator between 8 timeframes and the live values of the correlation
-> Each time all of the curves are in a zone of high correlation theres a dot plotted : if its positive high correlation : yellow dot. If it's negative high correlation : orange dot.
-> The red curve is an average of the 4 correlation curves.
-> Green or red flags : if 2/4 curves are in a high negative/positive area of high correlation and the curve is rising/falling : green or red flag. (it must be set up to be efficient, i've did a simple back test strategy for long -> with a good stop loss (5-15%) on a low time frame it's possible to reach >60-70% with a drawdown of <25-30%).