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Correlation

EW ANALYSIS: Risk-Off Sentiment Could Continue; NIKKEI+USDJPYHello traders! Today we will talk about Risk-Off mode over NIKKEI225 and USDJPY, where we see a tight positive correlation! As you can see, the main driver for the USDJPY sell-off was NIKKEI225, which may continue later this week, since we have seen an impulsive five-wave decline. In EW theory, after every five waves, a three-wave pullback follows and we can already see an a-b-c correction in progress, where wave »c« is still missing, so be aware of a Monday rally towards projected resistance areas, from where we may see another sell-off in the stock market and consequently also in the USDJPY! That said, in the NIKKEI225 futures chart, we are tracking a three-wave a-b-c corection, where 22000 resistance area can be tested, before we may see a sell-off continuation! So, as long as it's trading below 22780 highs, we will remain bearish! If we respect correlations, then it's similar with USDJPY, in which we think that 113 area, specifically 113.25 – 113.35 resistance area can be retested before another sell-off, so while it's trading beneath 114 region, we remain in the bearish mode! Early Monday moves are usually fake, so if we get a Monday rally within projected wave »c«, then this would be a perfect three-wave corrective rise that can be easily covered in the next days, when we expect another sell-off! Trade well! Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
by ew-forecast
Correlations: US30/DE10/JP10 yr bonds with the S&P/DowThis was an experiment to find any relevant patterns or correlations between US Bonds/equities. Nasdaq was not included due to it's high %'s skewing the perspectives on the chart Green vertical lines were "buy signals", and the red lines were sells. The result is that there definitely is some correlation here with the "oversold"/overbought" position on US 30yr bonds and US equities. What I'm seeing is more often than not it is an accurate indicator for a trend reversal, and also that it is not time for a buy "long term" yet. That signal comes (more often than not) when the 30 yr bond price is overbought on a weekly timeframe. I'm expecting an equities bounce in the next few days, but I'll be setting my long term buy targets lower. S&P around 2200-2300 wouldn't surprise me before the end of 2019
OANDA:USB30YUSDShort
by teckno05
SPX500USD (H4)After price formed a double bottom at key level support, a strong bullish impulse took place breaking all barriers of the downtrend structure. Price closed this Friday with a bullish engulfing candlestick breaking above resistance along with the major descending trendline. Will be anticipating a slight pullback to retest broken resistance (61.8 fib) as new support for a further push to the upside. This pair is important to watch as it has a strong correlation to the forex market. When price pushes up, AUD & NZD gain strength. When price moves lower on the SPX, this causes fear in the market & people move their money to safe haven assets like the CHF & JPY.
OANDA:SPX500USD
by Profound_Ambition
BTC pumps with the markets!!While most say that BTC and the stock market have no connection at all, we have been shown over and over that there is something interesting there. We can see on this chart that both the strong downturn lower in both markets mirrored each other and today's rally in stocks was yet again mirrored in crypto markets. Whether basing trades off of the movements of one on the other isn't recommended, the correlation is there and it is something to keep an eye on. Cheers!
BITSTAMP:BTCUSD
by CM_Trades
Trading Entry and Exit ChecklistsSELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY Trading Entry and Exit checklists Over the past 18 years of trading, it has been a crucial step in my development to constantly critique myself and my trading strategy. I constantly monitor my performance on a daily, weekly,monthly,quartley and yearly timeframe. Listed below is a small simple example of some of the checklists that i have used in the past prior to entering and exiting a trade. Entry Rules 1. Is the stop loss placed past the strongest support or resistance line? 2. Am i following my trading rules? 3. The risk/reward is acceptable 4. Have i double checked my entry/stop loss and target position? 5. No news announcements that will affect my trade? 6. Bid/ask spread - Is it in normal range for this pair, this session, this time? 7. AM i risking more then my agreed 1%? 8. Correlation - AM i trading against myself with already open trading trades? Exit Rules 1. Has the market behaved as predicted? If so stay on track 2. Has the trade reached the support or resistance line? 3. Has the stop been placed too far away? or to close? 4. Am i exiting to early? 5. If unsure of trade exit immediately? 6. If i was impatient and entered trade exit immediately? 7. Is there an upcoming news event that will affect my trade? 8. Is the trade changing directions? 9. Don't take profits to early!! Are you exiting before your target line? How has yours differed? is it similar?
BITFINEX:BTCUSDEducation
by SMPTrader
GOLD USD/JPY: inverse correlation Thank you for your attention, and please share your views and comments. Any idea is a contribution for a better understanding of The Matrix. Please note that I am not a professional trader and these are my personal ideas only. ***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.*** Thank you for following and for sharing your ideas. Disclaimer: The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. Cozzamara is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.
TVC:GOLD
by cozzamara
[DXY] Correlation with other pairsHi guys ! This is an other simple chart to explain the correlation between DXY and other pairs. As you know, the best exemple is with EURUSD. When EURUSD goes up, DXY goes down, and when DXY goes up, EURUSD goes down. This is because in the DXY (Dollar Index), there is more than 50 % EURUSD. The U.S. Dollar Index is calculated with this formula: USDX = 50.14348112 × EURUSD ^(-0.576) × USDJPY ^(0.136) × GBPUSD ^(-0.119) × USDCAD ^(0.091) × USDSEK ^(0.042) × USDCHF ^(0.036) Thanks for your time guys !
TVC:DXYEducation
by nothany
1
My personalized bitcoin index (factoring in USDT fluctuations)It averages the price across 9 exchanges, while calculating the actual USD value of bitcoin in USDT markets by multiplying the respective exchange rates by the value of USDT according to Kraken. Here's the formula for the chart in case anyone wants to use it themselves: (COINBASE:BTCUSD+BITSTAMP:BTCUSD+GEMINI:BTCUSD+POLONIEX:BTCUSDT*KRAKEN:USDTUSD+BITFINEX:BTCUSD*KRAKEN:USDTUSD+BINANCE:BTCUSDT*KRAKEN:USDTUSD+BITTREX:BTCUSDT*KRAKEN:USDTUSD+OKCOIN:BTCUSD+HITBTC:BTCUSD)/9 See related ideas(or find me on twitter/facebook/steemit) for more reasons why I'm so bullish. The chart should pretty much speak for itself, breakout of a falling wedge...
COINBASE:BTCUSDLong
by tomtourettes
5
EURJPY POSSIBLE LONGKeeping a Stop loss of amount $100 USD we could easily place trade having wide SL which will be below the minor support level. It will have enough breathing rooms and as EUR, GBP doing well cause of there eurozone well reports on last Friday of the week. It went well for EURUSD and GBPUSD as we know. Getting back some strength on European currency I guess it will have some potential for our EURJPY long side and which could be a meaningful trade too. The Risk to reward ratio is for now 1:1.34 as the plan but depending on the performance of the pair it could be nearly 1:2 if the price float around or above the minor resistance level for test purpose.
Long
by Anatta0
Gold, GDX & GLD: Correlated Markets Lead To BIG Profits! If you trade Gold, you must know that the GDX and the GLD are both derivative markets of Gold and are closely correlated since they both track aspects of Gold. So when either one of these move, then you must look to the other one's and see what they are doing, going to do or done already. They can give you precious clues as to what the other markets are going to do. In most cases, GDX and GLD are forward indicators of Gold itself. Why do I point this out? Well, what you see in my charts is my analysis of these 3 markets and you can see that they are all closely mimic each other. Now, I follow the mantra of "Trade what you see. Not what you think". That means I look at each chart by itself and not dependent on what any other chart is doing or projected to do. But when I analyze Gold, I also do look to GDX and GLD as well and see if my independent analysis of those markets agree with what I see in Gold. But VERY IMPORTANT to keep in mind is that NO MARKET correlate 1:1 to any other market. What that means is that Gold can move 100 pips while GDX might only move 25 pts. In any case, I'm showing you these trades that I took and issued out to my followers to illustrate this point. Just a tip for you the next time you decide to trade in Gold. Want to know more? Look below to my signature box or PM me.
FX:XAUUSDEducation
by EverythingForex
3
USDCHF: Time for a retracement soon ?The usdchf hit a low of 0.9540 before retracing to 0.9960 . That's a whopping 460 pip of retracement. Thus what's the revelation? U can never be too sure about the extent of how much a currency pair would retrace and if (surprise surprise) it could eventually even start an uptrend on its own. Such is the reality. The analysis is as good as it gets at the point of time but making provisions for different scenarios to play out and all the stop checks the trader has put in place to ensure that the analysis is still on track is essential for survival in any market. Thus in the case of the usdchf, with key levels taken out at 0.9890 and 0.9850 it actually opens the door to lower supports at 0.9790 and 0.97 being revisited again. However, with the longer term trendline at 0.97 holding at the moment, this is at best a retracement to Revelation Trading at the moment. We ultimately trade into the unknown and as usual the market will show us where it eventually wants to go.
Short
by revelationtrading
btc slave to the S&P 500???It cought my eye, that not a single trader looked at a correlation with the DJI, S&P500 and USD markets. while from this graph there is a clear evidence that the same institutions dumping traditional stock, in the wake of US FED hiking up the interest rates, Trump's ramblings on blaming the fed for the demise of the economy, while he just caused it to overheat and collapse. This market action has nothing to do with bulls or bears duking it out. This is plain freeing up liquidity, to move into other markets, like real-estate etc, that is not directly traded. mainly high value sell-offs by big institutions ( whales). BTC as a bucket for rapid cash, and quick move without too much taxes involved is equally leveraged to free up liquidity. some see a repeat of other october dips, reversals... etc. BTC is tightly coupled to DJI, S&P500 and USD trading. and as I mentioned before, it roughly follows the same pattern, sometimes a bit more fluctuating, but overall, if you use a smoothing algorythm, it just follows the main idices. just my 2 satoshi, this is an observation that many people do not look beyond the basket they are holding. the market is big, and keep a broad view, you will be less impacted and keep more afloat.
BITFINEX:BTCUSD
by byteminer
1
Bitcoin and S&P500 correlated more than people think! For the longest time, most people always correlated Bitcoin price to Gold price but there was a small subset of people that argued the equity market was the true correlation. As shown in the comparison chart above, we saw that the equities market began selling a few days before the cryptocurrency market given that cryptos are already down over 80-90% but this is more an analysis over global selling. We can see that October 9th was the day stock broke the triangle and began selling heavily while Bitcoin continued to range for a few days before taking the plunge. After the DOW fell over 800 points yesterday, the crypto market was hesitant to follow suit and waited until the end of the day and into the night before selling off heavily. Some exchanges even saw price break below $6000 as volume picked up massively and volatility re-entered the market. We also got news last night that the Shanghai Composite hit new lows not seen in 4-years last night when that part of the world woke up and saw the carnage of the New York session. Some rumors were swirling around that the Japanese were selling their crypto to cover the massive losses they were incurring on their equity portfolios, which caused the huge cascading sells in Bitcoin and rippled across the market. Some might say that a bounce in stocks might cause a bounce back in Bitcoin so keeping an eye on this correlation could be profitable if we are in fact correlated. Thanks guys
COINBASE:BTCUSDEducation
by CM_Trades
15
USDJPY and GoldWhy is gold correlated to yen? In reality, there is no proper explanation to this. Although the fact that gold and yen both share the status as a safe haven does in a way validates this correlation. But it is merely scratching the surface. Correlations in the markets come and go. A more recent example that traders can recollect was the short term correlation between oil prices and stocks in the first half of the year, which soon faded. This brings an important point to mention, which is that with any correlation you cannot take it for granted. Therefore traders need to constantly, and at regular intervals check on the correlation between gold and yen. For example, Gold and USDJPY have a -94% correlation on a weekly basis. However, this fluctuates and therefore traders should always keep an eye out on any significant changes.
by jarttu
4