Ultimate Multi-Asset Correlation System by able eiei

Ultimate Multi-Asset Correlation System - User Guide
Overview
This advanced TradingView indicator combines WaveTrend oscillator analysis with comprehensive multi-asset correlation tracking. It helps traders understand market relationships, identify regime changes, and spot high-probability trading opportunities across different asset classes.

Key Features
1. WaveTrend Oscillator

Main Signal Lines: WT1 (blue) and WT2 (red) plot momentum and its moving average
Overbought/Oversold Zones: Default levels at +60/-60
Cross Signals:

🟢 Bullish: WT1 crosses above WT2 in oversold territory
🔴 Bearish: WT1 crosses below WT2 in overbought territory


Higher Timeframe (HTF) Analysis: Shows WT1 from 4H, Daily, and Weekly timeframes for trend confirmation

2. Multi-Asset Correlation Tracking
Monitors relationships between:

Major Assets: Gold (XAUUSD), Dollar Index (DXY), US 10-Year Yield, S&P 500
Crypto Assets: Bitcoin, Ethereum, Solana, BNB
Cross-Asset Analysis: Correlation between traditional markets and crypto

3. Market Regime Detection
Automatically identifies market conditions:

Risk-On: High correlation + positive sentiment (🟢 Green background)
Risk-Off: High correlation + negative sentiment (🔴 Red background)
Crypto-Risk-On: Strong crypto correlations (🟠 Orange background)
Low-Correlation: Divergent market behavior (⚪ Gray background)
Neutral: Mixed signals (🟡 Yellow background)


How to Use
Basic Setup

Add to Chart: Apply the indicator to any chart (works on all timeframes)
Choose Display Mode (Display Options):

All: Shows everything (recommended for comprehensive analysis)
WaveTrend Only: Focus on momentum signals
Correlation Only: View market relationships
Heatmap Only: Simplified correlation view


Enable Asset Groups:

✅ Major Assets: Traditional markets (stocks, bonds, commodities)
✅ Crypto Assets: Digital currencies
Mix and match based on your trading focus



Reading the Charts
WaveTrend Section (Bottom Panel)

Above 0 = Bullish momentum
Below 0 = Bearish momentum
Above +60 = Overbought (potential reversal)
Below -60 = Oversold (potential bounce)
Lighter lines = Higher timeframe trends

Correlation Histogram (Colored Bars)

Blue bars: Major asset correlations
Orange bars: Crypto correlations
Purple bars: Cross-asset correlations
Bar height: Correlation strength (-50 to +50 scale)

Background Color

Intensity reflects correlation strength
Color shows market regime


Dashboard Elements
🎯 Market Regime Analysis (Top Left)

Current Regime: Overall market condition
Average Correlation: Strength of relationships (0-1 scale)
Risk Sentiment: -100% (risk-off) to +100% (risk-on)
HTF Alignment: Multi-timeframe trend agreement
Signal Quality: Confidence level for current signals

📊 Correlation Matrix (Top Right)
Shows correlation values between asset pairs:

1.00: Perfect positive correlation
0.75+: Strong correlation (🟢 Green)
0.50+: Medium correlation (🟡 Yellow)
0.25+: Weak correlation (🟠 Orange)
Below 0.25: Negative/no correlation (🔴 Red)

🔥 Correlation Heatmap (Bottom Right)
Visual matrix showing:

Gold vs. DXY, BTC, ETH
DXY vs. BTC, ETH
BTC vs. ETH
Color-coded strength

📈 Performance Tracker (Bottom Left)
Tracks individual asset momentum:

WT1 Values: Current momentum reading
Status: OB (overbought) / OS (oversold) / Normal


Trading Strategies
1. High-Probability Trend Following
✅ Entry Conditions:

WaveTrend bullish/bearish cross
HTF Alignment matches signal direction
Signal Quality > 70%
Correlation supports direction

2. Regime Change Trading
🎯 Watch for regime shifts:

Risk-Off → Risk-On = Consider long positions
High correlation → Low correlation = Reduce position size
Crypto-Risk-On = Focus on crypto longs

3. Divergence Trading
🔍 Look for:

Strong correlation breakdown = Potential volatility
Cross-asset correlation surge = Follow the leader
Volume-price correlation extremes = Trend confirmation

4. Overbought/Oversold Reversals
⚡ Trade reversals when:

WT crosses in extreme zones (-60/+60)
HTF alignment shows opposite trend weakening
Correlation confirms mean reversion setup


Customization Tips
Fine-Tuning Parameters
WaveTrend Core:

Channel Length (10): Lower = more sensitive, Higher = smoother
Average Length (21): Adjust for your timeframe

Correlation Settings:

Length (50): Longer = more stable, Shorter = more responsive
Smoothing (5): Reduce noise in correlation readings

Market Regime:

Risk-On Threshold (0.6): Lower = earlier regime signals
High Correlation Threshold (0.75): Adjust sensitivity

Custom Asset Selection
Replace default symbols with your preferred markets:

Major Assets: Any forex, indices, bonds
Crypto: Any digital currencies
Must use correct exchange prefix (e.g., BINANCE:BTCUSDT)


Alert System
Enable "Advanced Alerts" to receive notifications for:

✅ Market regime changes
✅ Correlation breakdowns/surges
✅ Strong signals with high correlation
✅ Extreme volume-price correlation
✅ Complete HTF alignment


Correlation Interpretation Guide
ValueMeaningTrading Implication+0.75 to +1.0Strong positiveAssets move together+0.5 to +0.75Moderate positiveGenerally aligned+0.25 to +0.5Weak positiveLoose relationship-0.25 to +0.25No correlationIndependent movements-0.5 to -0.25Weak negativeSlight inverse relationship-0.75 to -0.5Moderate negativeTend to move opposite-1.0 to -0.75Strong negativeStrongly inversely correlated

Best Practices

Use Multiple Timeframes: Check HTF alignment before trading
Confirm with Correlation: Strong signals work best with supportive correlations
Watch Regime Changes: Adjust strategy based on market conditions
Volume Matters: Enable volume-price correlation for confirmation
Quality Over Quantity: Trade only high-quality setups (>70% signal quality)


Common Patterns to Watch
🔵 Risk-On Environment:

Gold-BTC positive correlation
DXY negative correlation with risk assets
High crypto correlations

🔴 Risk-Off Environment:

Flight to safety (Gold up, stocks down)
DXY strength
Correlation breakdowns

🟡 Transition Periods:

Low correlation across assets
Mixed HTF signals
Use caution, reduce position sizes


Technical Notes

Calculation Period: Uses HLC3 (average of high, low, close)
Correlation Window: Rolling correlation over specified length
HTF Data: Accurately calculated using security() function
Performance: Optimized for real-time calculation on all timeframes


Support
For optimal performance:

Use on 15-minute to daily timeframes
Enable only needed asset groups
Adjust correlation length based on trading style
Combine with your existing strategy for confirmation

Enjoy comprehensive multi-asset analysis! 🚀