DislikedHey Guys, I am in position with USDNOK, I am satisfied with the trade so far (0,5RR winning, SL is in BE). However I am thinking about how to continue. USDNOK has moved highly together with EURUSD in the last days and now EURUSD is facing 1,3 BRN and EMA-s on daily chart so I am thinking about closing the trade now. Any comments? {image} {image}Ignored
Its never recommended to execute an action on your trade that stems from something that you see in another correlated pair, unless you are trading a system geared specifically to trade correlation.
Yes many pairs move in tandem with each other and that is precisely why we get our trades in "bunches" followed by dry periods where nothing seems to be moving. But that said, 2 pairs may be positively correlated but what many people don't understand is that its never a rocket science. When EUR/USD goes up USD/CHF doesn't always have to go down. And when it does it doesn't necessarily have to go down in the exact same proportion as EUR/USD went up. Also this setting may change over time so unless you have some objective way of actually trading correlation the advice we pass on is to keep your analysis of trading systems restricted to the currency pair as this alleviates a lot of unnecessary stress and confusion that comes with trying to keep an eye out for pairs you think are correlated with the one you are watching.
So for this particular setup, more than anything else I would have my eyes on the RN PPZ price is now hovering at which is also the FTA. A lot for me would depend on how price decides to close from this point on. A good strong close and we maybe pushing on. Evidence of resistance and I would be cautious.
g.
I believe . . .