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The alarm correlation is an essential function of network management systems to provide detection, isolation and correlation of unusual operational behaviour of telecommunication network. However, existing alarm correlation approaches still rely on the manual processing, and depend on the knowledge of the network operators. Since, the telecommunication network produces a number of alarms which are so called the alarm floods, it could be very difficult for the network operators to detect the root cause problems in a short period of time. Therefore, we propose the alarm correlation algorithm which is able to isolate and correlate the root causes in a very short time. In addition, we show that the proposed algorithm performs well in terms of efficiency of analyzing alarms and accuracy of identifying root cause.