What Is Correlation In Forex Trading?
Understanding the role of correlation is of paramount importance in the world of forex trading as it offers valuable insights into the intricate relationships between currency pairs. By delving into the depths of correlations, traders gain the ability to make well-informed decisions and effectively manage their risk. This...
Hello Traders! 😃 In this education idea, we are going to cover Forex Correlation and how you can use this information to help you make wise decisions in the market. Let's get started on this important topic...
What is Currency Correlation?
A currency correlation in forex is a positive or negative relationship between two separate currency pairs. A positive...
I always monitor correlations before doing day trading or swing trading on more assets, at the same time.
Correlation is a measure that defines how different assets move in relation to one another. The more the correlation coefficient is, the more they are aligned closely.
My layout of correlations here.
US Dollar and SP500 as references at first row of each...
Which came first, the chicken or the egg?
Traders all over the globe are constantly looking for an edge, something that's going to give them an extra indication on market directional movements prior to them unfolding. I know from personal experiences and from chatting people at the firm that many traders lean towards finding correlation between the equities...
All trading requires an understanding of how markets are related. Understanding these relationships will put you ahead of others that don’t get it.
Mean reversion and spread trades require a deeper understanding of how markets move together and how these relationships change. Like the weather, the degree of correlations, lag, convergence/divergence change all...
Quick Tutorial video to show how I add and use other instruments like DXY and ES1! to track correlations across markets.
These correlations are a powerful confirmation to help identify behaviour across markets, to give confident in the forex or futures instrument you are trading.
I briefly mention Support & Resistance zones in this video. You can learn how I...
Hello traders!
Welcome to the Crypto Quick Overview chart with major cryptocurrencies of BTCUSD, ETHUSD, LTCUSD, DSHUSD , XRPUSD and BCHUSD in which we will show you how the cryptocurrencies look from Elliott Wave perspective.
In the Crypto market it's important to respect correlations, because they are most of the time moving together in positive correlation....
Hello traders!
Today we will talk about correlations in different markets!
Correlations are very important to recognize the direction. There are positive and negative correlations, but what we currently see in the FX market (EURUSD), Commodity market (Crude oil) and Cryptocurrency market (BTCUSD) is that they are in tight positive correlation! So, if we respect...
Hello traders!
Today we will talk about US Dollar and Bitcoin!
We have noticed very interesting patterns and correlation between US Dollar and Bitcoin.
In the first chart we can clearly see bearish setup on US Dollar after that sharp and impulsive decline followed by a three-wave a-b-c expanded flat correction back to ideal 61,8% Fibo. retracement. At the same...
Welcome!
Here's a super simple chart, and strategy, which can help you get started in your trading journey.
Trading strongly correlated pairs and looking for divergences is hardly an industry secret. It's a standard technique, and one that is heavily employed by large institutional investors.
Basically, correlation means that certain pairs move in a similar...
Hello traders!
Today we will talk about treasuries (10year US Notes) and stocks (S&P500).
Well, as you may already know, treasuries and stocks are more or less in negative correlation and what we have noticed that 10y US Notes can be forming a big bullish triangle, while S&P500 can be finally finishing a five-wave rally from lows.
In EW theory, triangles are...
The price of Gold has complex relationships with Stock Markets and the US-Dollar (among other things). In the screencast I point out some of the complexities looking back to 2007-2009. This is relevant to the current situation with Gold.
