In times of market uncertainty, investors often seek refuge in assets considered safe havens, such as gold and the US Dollar Index (DXY). While traditionally these two assets exhibit a negative correlation, meaning when one rises, the other tends to fall, their simultaneous ascent during periods of uncertainty might seem counterintuitive at first glance. However,...
1-Gold (XAU/USD) and AUD/USD: Gold prices often exhibit a positive correlation with the Australian dollar (AUD/USD). Australia is a major producer of gold, and the Australian dollar is sensitive to changes in gold prices. When gold prices rise, AUD/USD tends to appreciate, and when gold prices fall, AUD/USD tends to weaken.
2-Gold (XAU/USD) and USD Index (DXY):...
There is a -94% correlation on the weekly timeframe (also known as negative correlation) between Gold & the Japanese Yen.
GOLD📉
=
USDJPY📈
When one market moves up, there is a high probability the other market will move down. Knowing this allows you to mitigate your risks, by not opening similar positions in both markets.
Embarking on a journey in the world of trading demands a profound understanding of market intricacies. One often-overlooked yet powerful aspect is the domain of negative correlations — the intricate dance where the movement of one asset influences another inversely. This guide aims to be your compass in navigating these complex waters, exploring real-world...
In the graph, combined into one graph of the dominance of such stablecoins as USDT and USDC.
Orange color—chart of the bitcoin price against the dollar.
The time interval is 1 week. The graph is logarithmic.
The same chart and the same parameters on the candlestick chart .
All BTC price lows and highs are specially shown. Compare what the capitalization of...
Correlation is a measure that establishes the degree of relationship between different assets. It is measured on a scale of +100% to -100%.
In the case of a +100% correlation (perfect positive correlation), both assets move in an identical manner in the market. Conversely, if the correlation is -100% (perfect negative correlation), we are talking about two assets...
Let's imagine it is Sunday, and you're preparing your watchlist for the week.
You use the market scanner to create your watchlist. You can learn about the market scanner here:
📊Your list contains:
PEPPERSTONE:EURUSD PEPPERSTONE:GBPJPY PEPPERSTONE:GBPUSD PEPPERSTONE:NZDJPY PEPPERSTONE:XAUUSD PEPPERSTONE:USDJPY
It's now Monday, and you start...
Today I want to share with you this topic: the 3 Entry Rules to Boost Your Trading Performance.
Over the 20,000 traders that we have coached over the time via conferences and talks we’ve done all over the world, we have found one of the challenges that traders have is that they find themselves locked into a trade and then being stopped out when they enter into...
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...
Have you ever noticed a time when a certain product went up and another similar product went down at around the same time? Or when that product went down and another product also went down at the same time? If the answer is yes, then what you noticed was 'product correlation' in action.
What exactly is product correlation? In the financial markets, correlation is...
Forex correlation is like a game of tag. You know how when you're playing tag with your friends, you all run in different directions and some of you end up running together while others run in opposite directions? Well, in forex trading, currency pairs are like friends running around in different directions.
Sometimes, two currency pairs move in the same...
Currency correlation is important to understand in forex trading because it could impact your trading results often without you even knowing it.
In this post, I will share some information about correlations in forex trading and how you are able to use it to your advantage to avoid unnecessary losses. Throughout my journey as a beginner trader, I have bought or...
Interest rates and USD strength are positively correlated.
An increase in US interest rates will typically result in a strengthening of the USD.
The reason is...
Foreign investors tend to flock to US assets, such as bonds and fixed bank rates for higher returns.
Higher demand for US assets drives up their price, and as a result, the USD strengthens.
As for...
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...
One of the biggest things you should understand as a trader is prices don’t just go up and down (well, maybe on a really small timeframe they’re more chaotic). They’re usually backed by some actions, data and things happening in other markets. This all creates general economic tendencies. But how do we know what affects dollar/currency pair and how? Well, here is...
Hello everybody!
Professionals have been aware of correlation for a long time and use it profitably. The essence of correlation is not difficult to understand and using it in trading can significantly increase your profit.
Correlation coefficient of currency pairs – what is it?
Correlation is a statistical relationship between two or more random variables.
...
How do you trade with Correlation?
You can trade on forex pair correlations by identifying which currency pairs have a positive or negative correlation to each other. I have identified above the 3 main correlation pairs which correlate best with each other. In the conventional sense, you would open two of the same positions if the correlation was positive, or two...
