I remember attending a webinar hosted by one of my mentors about correlation.When I started looking correlation at first I got confused. However, after pondering about it, I realised it is one of most useful tools in Forex. For example, with correlation one can determine the right timing to enter a trade.
Today I asked myself, is it a coincidence that there is a Potential Bat pattern forming on the EURUSD, a potential bearish Bat pattern forming on USDCAD and a potential bullish Bat pattern on AUDUSD? What is correlation trying to tell me ? USD being the common currency in these pairs, if USD is to gain strength or weaken, there must be at least a reflection is these pairs unless they are both strong or weak, in that case they would be ranging.
Okay enough correlation. So the reasons this trade interest me are:
1. Of course a potential bullish bat pattern
2 . A potential support zone.
3 . RSI Oversold.
4. Fib Ratio confluence.
5. Finally, at least a potential 1:1.5 risk : reward, and using correlation shooting for potential higher targets.
Today I asked myself, is it a coincidence that there is a Potential Bat pattern forming on the EURUSD, a potential bearish Bat pattern forming on USDCAD and a potential bullish Bat pattern on AUDUSD? What is correlation trying to tell me ? USD being the common currency in these pairs, if USD is to gain strength or weaken, there must be at least a reflection is these pairs unless they are both strong or weak, in that case they would be ranging.
Okay enough correlation. So the reasons this trade interest me are:
1. Of course a potential bullish bat pattern
2 . A potential support zone.
3 . RSI Oversold.
4. Fib Ratio confluence.
5. Finally, at least a potential 1:1.5 risk : reward, and using correlation shooting for potential higher targets.