Hello traders! Today we will talk about emerging markets(EEM) and EURUSD. As you can see in the first chart, there's a positive correlation between emerging markets and EURUSD. Of course, there are no tick by tick correlations, but the current wave structure it's telling us that we may see a bigger recovery in the upcoming days/weeks. Emerging markets can be...
Correlation: Correlation is a key concept and can make the difference between both winning trades and losing trades as well as good trades becoming great trades. As those who follow me know, I trade almost exclusively the GBP pairs. Ideally, we want to see all the pairs moving in the same direction. That is a great sign that not only will the trade be successful...
Today I have told you to close the position of NZD/USD in profit before it went up. Why did I do this? Because I`m checking correlations. Whenever you trade a MAJOR-PAIR with USD/XXX or XXX/USD do make sure to use the US-DOLLAR-INDEX (DXY) to check it for valid inter-market-correlations for your asset. Whether it`s a positive or negative correlation - you...
As you see in the chart, here we have a good positive correlation between these 3 charts. These are #Binance IEOs and move together. We have Specified 'Top' and 'bottom' with green and red arrows that are at a same time in these charts.
As you can see, here we have positive correlation between XRP & DOGE charts.
Against the Swiss Franc which is also a fiat shitcoin, the USD fell 84% from 1971 to 2011 (40 years). Just by looking at how much it fell compared to Gold from 1975 to 2011, the USD lost 94% of its value. (1/XAUUSD = USDXAU) The same and worse holds for most fiat shitcoins right now. As for Bitcoin and USD, Bitcoin came into life when the USD restarted its...
Hello traders! Today we will talk about stocks, specifically Nikkei and why USDJPY can see higher prices. Well, as you may already know, in EW theory after a three-wave corrective decline, the trend should remain to the upside. This is what we see in the stock market all the time. However, Nikkei got our attention, because we can see a nice five-wave rally after...
Palladium and its Correlation with Gold
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...
Silver and Gold - An example of Correlation and Divergence In this educational post, we discuss the correlation and divergence between Silver and Gold
Silver and Gold - An example of Correlation and Divergence Educational post in which we discuss correlation and divergence.
Hey guys, after a time of inactivity I"m back. Today I show you how you can trade EUR/USD with the help of correlations. You can see in the chart positive correlations and negative correlations. Be careful the arrows on the chart are no trend direction. If for example Oil change its direction the trend direction is turned. But be careful with long...
Here is my two yestarday´s levels from my Members area. ( Both ended up in profit ) Let me explain my how correlation between EURUSD and USDCHF works and how you can look at the charts. EURUSD and USDCHF are negatively correlated (correlation almost -100%). If USDCHF falls, then EURUSD should rise. If EURUSD rises, USDCHF should fall. This means that in...
Pictured above is a graph of Royal Dutch Shell vs brent crude, the correlation coefficient between them, and the commodity channel index tracking the volume weighted moving average of Shell. I tested this indicator on a few energy stocks: RDS, MRO, BP and XOM. Negative correlation between brent crude and an energy stock coupled with an overbought CCI seems to...
The reasoning behind this very important set of correlations!
SELF 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...
Hi 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 =...
Bitcoin and the stock market continues to correlate as news this morning started to cause markets to sell-off, which has resulted so far in a drop in Bitcoin shortly after. We have to continue to keep an eye on this because they have been following each other closely. Thanks guys