If we there are two series X and Y of size N, to compute correlation coefficient one needs to do the following.
1. Calculate average of X and Y. Xav = SUM(Xi)/N and Yav = SUM(Yi)/N where Xi and Yi are individual numbers in series.
2. Calculate the correlation coefficient
R = SUM((Xi - Xav) * (Yi - Yav)) / SQRT(SUM(Xi - Xav)**2) * (Yi - Yav)**2)
If we there are two series X and Y of size N, to compute correlation coefficient one needs to do the following. 1. Calculate average of X and Y. Xav = SUM(Xi)/N and Yav = SUM(Yi)/N where Xi and Yi are individual numbers in series. 2. Calculate the correlation coefficient R = SUM((Xi - Xav) * (Yi - Yav)) / SQRT(SUM(Xi - Xav)**2) * (Yi - Yav)**2) See http://bfy.tw/4Sci Also there are plenty of correlation indicators for MT4: http://bfy.tw/AZKZ
