The E.G. Correlation toolkit contains two correlation indicators developed for the NinjaTrader 8 platform. The correlation methodology emphasizes how different financial instruments move in relation to each other. This is particularly relevant in U.S. indices and futures trading, where assets like ES (S&P 500 futures) and NQ (Nasdaq 100 futures) often exhibit strong correlations. By analyzing their price movements, traders can confirm trend strength, anticipate reversals, and validate trade setups. Highly correlated assets moving together confirm existing trends, while divergence between them can signal potential reversals.
Correlation can be used to strengthen trade entries and risk management. For example, if ES and NQ move in sync and a trade signal appears on one asset, traders may check the other for confluence before entering. Conversely, if the two diverge, it might indicate uncertainty or an upcoming shift in market conditions. This approach can particularly be useful when paired with other E.G. indicators like the Trigger Point, which refine market timing and execution.
By integrating correlation analysis into a trading strategy, traders gain a broader market perspective, reducing the risk of false signals. While correlation alone doesn’t dictate trade decisions, it provides an additional layer of confirmation when assessing market sentiment and trade opportunities. The E.G. approach encourages traders to look beyond a single chart and consider how related assets interact to enhance decision-making accuracy.
Considering Three Instruments
The correlation approach can be generalized to analyze two or three instruments simultaneously. For instance, ES, NQ, and RTY (Russell 2000 futures). The figure below shows how correlation signals are showing on your chart:
Requirements
The E.G. Correlation toolkit requires a valid license of the E.G. Trigger Point; its up-to-date levels should be showing on your chart.
The toolkit comes with two indicators:
1. The E.G. Correlation - capable of analyzing two instruments simultaneously.
2. The E.G. Correlation Multiple - capable of analyzing three instruments simultaneously.
Price is $1,211.76
The Product Is Non-REFUNDABLE
Disclaimer
No Representation Is Being Made That Any Account Will, Or Is Likely To Achieve Profits Or Losses Similar To Those Discussed Within This Site, Support And Texts. Our Course(s), Products And Services Should Be Used As Learning Aids. If You Decide To Invest Real Money, All Trading Decisions Are Your Own. Our Track Record Is From Trades Given To Subscribers In Advance And Are Not Hindsight. The Results May Have Under-Or-Over Compensated For The Impact, If Any, Of Certain Market Factors, Such As Lack Of Liquidity. Hypothetical Or Simulated Performance Results Have Certain Limitations. Unlike An Actual Performance Record, Simulated Results Do Not Represent Actual Trading. Simulated Trading Programs Are Subject To The Fact That They Are Designed With The Benefit Of Hindsight. The Risk Of Loss In Trading Commodities Can Be Substantial. You Should Therefore Carefully Consider Whether Such Trading Is Suitable For You In Light Of Your Financial Condition.