Introduction to the PPMCC Indicator
The PPMCC shortcut means Pearson Product-Moment Correlation Coefficient (Pearson’s PCC).
That tool displays the linear relation between the moving average values of two forex pairs with values ranging from -1 to +1. When the chart is above zero, a positive correlation is marked. Correlation is negative below zero. Zero indicates that there is no correlation.
The default indicator settings can be modified directly from the input tab. Feel free to experiment with the settings and parameters to fit your personal preferences.
These are five input parameters:
Period – MA calculation period
First symbol name – the name of the first financial instrument
First symbol applied price – the calculation price of the first financial instrument
Second symbol name – the name of the second financial instrument
Second symbol applied price – the calculation price of the second financial instrument
If an invalid symbol name is used (for the first symbol, the second one, or both), the indicator prints a message to the log and is unloaded with an error.
How to set up the PPMCC indicator in MT5?
Copy and paste the ppmcc-indicator.mq5 or ppmcc-indicator.ex5 indicator files into the MQL5 folder of the Metatrader 5 trading platform.
You can gain access to this folder by clicking the top menu options, which goes as follows:
File > Open Data Folder > MQL5 > Indicators (paste here).
Now go to the left side of your MT5 terminal. In the Navigator find the gauge name, right-click it and select Attach to the chart.
The PPMCC indicator is well worth adding to your trading collection. It will be very useful for traders using pairs correlation in their analysis.
PPMCC Indicator Free Download
To download the PPMCC Indicator for Metatrader 5 (MT5) for free just click the button below: