Correlation Ranking Heat Map is the Correlation Matrix based Trend indicator. Correlation Ranking Heat Map calculates the cross correlation of all possible combination of entire market data. Then after, you can use these useful relationship among symbols to identify the potential market direction of any symbol you want. Yet, the rigorous calculation is done at the background. For your trading, you just need to press few buttons to bring the essential information for your trading.
Then how do we use the cross correlation to find out the trend or trend strength of each symbol. Correlation basically find out the relationship or co-movement of two or more symbols. When they are highly correlated, we can group these similar behaving symbols in one basket. What does this mean for your trading ?
To explain in layman’s term, say that, John is first year student in the Aspire Primary School. Now, you know that Mary, also another first year student in the Aspire Primary School, is going to picnic to Disney land tomorrow. Then without even asking to John, we can guess or predict that John is also in the group going to Disney land tomorrow.
Of course, the chance of John joining to the picnic group is subject to some probability because he might be sick on the day. But still, the chance of John joining to the picnic group is higher than not. In summary, correlation helps us to predict the behavior of individual.
This is the underlying idea behind this Correlation Matrix Based Trend Indicator. Instead of looking at one symbol, you are looking at multiple of highly related symbols to find out their trading direction.
Considering most of technical indicator is calculated on one symbol data, this correlation strategy utilizes multiple of symbol data to find out more accurate trend direction than typical technical indicator. In correlation ranking heat map, we do not mix it up with other lagging indicator but we just make the direct use of price movement itself in deciding trend direction. So the strategy is also partly related to the price action across multiple symbols.
For free version of Correlation Ranking Heat Map, just download it from this link (No signup is required) and you can use some basic features for your trading:
Professional version of Correlation Ranking Heat Map provide the following features and many more:
Heat Map by Symbol
Heat Map by Ranking
Heat Map by Magnitude
Correlation Matrix for all symbols
Standard Deviation for all symbols
Correlated Group Lookup feature for each heat map ( this is the most powerful feature for your trading)
Paid version comes with fast MetaTrader Connectivity for any custom symbols for either MetaTrader 4 or MetaTrader 5
Potent Benefit of Correlation Ranking Heat Map
Easy and simple graphical representation of trend strength of overall market
Easy and simple graphical representation of trend strength of correlated group
Prediction of trading direction for individual symbol from correlated group
This is also helpful for the portfolio Construction or portfolio trading
Both professional and free version of our Correlation Ranking Heat Map is built inside our Trading Investment Helper. With Professional Version, you have an access to unlimited features of Correlation Ranking Heat Map. In addition, you can connect our Correlation Ranking Heat Map to your either MetaTrader 4 or MetaTrader 5 for your own custom symbols. You can get the update frequency in real time. For professional version, you will also receive either ex4 or ex5 files to get connected to your own MetaTrader.
Free Limited Version
With Free Limited version, you can only use some limited free features. Data update frequency in the free limited version is 10 minutes whereas you can get real time update frequency for Professional version.