The document discusses the Pip4 Pip indicator, which allows traders to visually see correlations between currency pairs in order to make better decisions about when to enter hedge trades. It has two modes: Correlation Mode shows pip-for-pip correlations between multiple pairs on bar charts or line graphs, while Bar Formation Mode shows a lower time frame transposed onto a higher time frame. The indicator works by automatically starting from the first fully visible bar on a chart.

1. _Correlation_Charts
Correlation(Hedge) tradingismore popularthanever. The Pip4 Pipindicator’saimisto assisttraders
inmakinglogical decisionsonwhenandwhere toenterahedge trade byvisual seeingthe pipforpip
correlationof anytwo pairs,or multiplepairs. Once able tosee the correlationswingsonhighertime-
framesthendrillingdowntolowerTF,the tradercan make betterdecisionsonwhentoenterthe trade.
Modes
1. CorrelationMode:
a. Use thismode to see PipforPipcorrelationbetweenanytwopairsormultiple pairs.
b. Use bar-chartsor line graphswithmultiplecurrencypairs.
c. Correlation(Hedge) tradingismore popularthanever. The Pip4 Pipindicator’saimis
to assisttradersinmakinglogical decisionsonwhenandwhere toenterahedge trade
by visual seeingthe pipforpipcorrelationof anytwopairs,or multiple pairs. Once able
to see the correlationswingsonhighertime-framesthendrillingdowntolowerTF,the
trader can make betterdecisionsonwhentoenterthe trade.
2. Bar FormationMode:
a. Use the Bar formationmode tovisuallyseealowertime frame transposedontoa
highertime frame tovisuallyobserve the interworkingof the bar.
Setup
1. Copythe ex4 file tothe yourbroker/experts/indicatorsfolder.
2. Before placingthe indicatoronthe chart itis importanttoknow a little how itworks. The
indicatorautomaticallystarts andsetsthe basisat the firstfullyvisible bar. Soforexample,if I
wantedtosee the correlationfromthe weekendgaponward:
a. First,I wouldlocate the bar.

2. b. Scroll the screenso thatthe firstbar isthe firstfullyvisible baronthe chart.

3. c. Finallythe indicatorwill continuetocalculate barsfromthispoint.

4. Settings
1. Bar Formation Mode
a. S1= same symbol as
b. S1cor= “+”
c. TF= the desiredcomparisontimeframe.
(One-hourbarstransposedontothe Dailychart)

5. 2. CorrelationMode
a. S1 = The desired symbol forcorrelation
b. S1cor = “+” or “-“. If you are not sure if the correlationispositive ornegative,youcan
checkthe matrix at http://www.mataf.net/en/analysis-correlation.htm
c. TF = 0
d. S1adj = The indicatorworksonone axis,ona pipfor pipbasis. The percentage
adjustmentadjuststhe S1pair movesbya percentage. Forexample if the GBPUSDis
overlaidonthe EURUSD andthe movesare nearly2 for 1 pips,the GBPUSD S1adj could
be adjustedto50% to make the charts line upbetter.

6. Histogram
SAME SETTINGS AS CHART.