If you're diving into the world of trading, you might want to take a closer look at the Smoothed Correlation Indicator. This nifty tool helps you gauge whether prices are trending or ranging by using a bar-to-bar correlation coefficient.
So, what does this all mean? Well, when the indicator value creeps close to 1, it signals that the market is either in an upward or downward trend. On the other hand, if the value hovers around 0, it indicates that prices are just going sideways. And if you see a negative value, brace yourself for some whipsawing price action!
To customize the indicator to your trading style, you can set the correlation period using the CorrPer input and adjust the smoothing period with the SmthPeriod input. This flexibility allows you to fine-tune the indicator to better align with your trading strategy.
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