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-   -   Trading correlation pairs by using the other pairs (https://www.forexfactory.com/showthread.php?t=996596)

redfan May 2, 2020 2:40pm | Post# 1

Trading correlation pairs by using the other pairs
 
Hello everyone
I have decided to make this thread,
So I'll get this out of the way first,

I'm not guaranteeing anything you will lose like 95% of traders do,
And I will not be held responsible for any of your losses,

You trade at your own risk.

And I'm not trying to tell experienced traders how to trade,

I thought I would do this for new traders who have yet to pick up on the basics,
And if any experienced traders who would like to contribute,
You are welcome,

I know what it's like starting at the very beginning,
knowing nothing about what you are doing,
I've been doing this since 2011, So I picked up quite a lot.

I'm no expert and I cannot write any sort of code,

But it's the little things at first that you struggle with like.
How do you use the MT4 platform,
How many of you know that a trendline can be as long or as short as you want it.
It doesn't have to belong all the time, you can change it in the settings,

I will show you a way to confirm the trades I make,
I have a moving average and currency strength.
I will use divergence lines apart from that, it's quite simple.
The moving average will give you your entry point.
This will be backed up by the currency strength and the chart setup
What I hope to show you is some easy tips,

I noticed the other week that someone had set an EA running,

And this EA was set for 20 pairs, And two of them I noticed were buy orders for EUR/USD and USD/CHF,

(This is why I thought of this thread,)

I'm not going to say they both cannot win,
But this is the sort of trade. When you see EUR/USD going up,
You sell USD/CHF,

So we have traders out there who are betting against themselves,

I'm talking about the correlation of pairs,
And there are A few rules, such as the one I just mentioned.
I won't be doing a lot of writing,
But I hope to put some pictures of charts on at least once a day,



Question one Where do you entry
I use The moving average 21 exponential When you see it crossing to the other side of the candle.

Question two. What do you use to support your entry?
I use the currency strength indicator and the moving average.
The rest is hard to explain I will show you on the chart

Question three you will ask me how I place 3 pairs on the same chart
I will show you on the chart.
So good luck to everyone and stay safe,

redfan May 2, 2020 2:43pm | Post# 2

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let get this one on first.

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redfan May 2, 2020 2:57pm | Post# 3

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This is a trade I missed last Thursday, the trade itself is quite easy to see,
the entry point is quite easy to see, where the moving average crosses
the currency strength meter shows the US pair is in third place from the top,
and the Australian and British pound, are bottom and second from the bottom
this was a four-hour chart we also have divergence in place clearly marking where the trend was going to change direction,
so for me, I would trade this but I missed it,
if you have any questions about this trade or these charts.
Please let me know.

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redfan May 2, 2020 3:30pm | Post# 4

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You might be asking yourself this question?
He has used divergence lines on is chart against another chart instead of using the RSI or the rest of the indicators that people use,
You would be right.
BUT I use the divergence lines only against pairs that are correlated with the pair I am trading,
The charts I am about to show as 3 pairs THAT are correlated, So why would you use an RSI line or any other line, it makes more sense to use divergence lines against pairs that ARE correlated against
ONE ANOTHER,
see chart.

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redfan May 2, 2020 5:19pm | Post# 5

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redfan May 2, 2020 5:31pm | Post# 6

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KeenPips May 2, 2020 5:43pm | Post# 7

Thank you @redfan for your thread. You are sharing good information but I wonder if this thread belongs under 'Trading Discussion' as you are treating a trading system/approach. Is it not better under the 'Trading Systems' section? I visited because the thread is under a 'Trading Discussion.' I usually don't spend time on threads under 'Trading Systems.' Nevertheless, trading correlated pairs may be a topic worth discussing.

Stay safe, trade safe.

KP

redfan May 2, 2020 5:47pm | Post# 8

Thank you @redfan for your thread. You are sharing good information but I wonder if this thread belongs under 'Trading Discussion' as you are treating a trading system/approach. Is it not better under the 'Trading Systems' section? I visited because the thread is under a 'Trading Discussion.' I usually don't spend time on threads under 'Trading Systems.' Nevertheless, trading correlated pairs may be a topic worth discussing. Stay safe, trade safe. KP

Thank you for your comments. I don't know why they moved me to this thread
because on Monday, I will be trading and this is a trading system.

KeenPips May 2, 2020 5:53pm | Post# 9

Noted.

Trade safe.

KP

{quote} Thank you for your comments. I don't know why they moved me to this thread because on Monday, I will be trading and this is a trading system.

redfan May 2, 2020 5:54pm | Post# 10

They have moved me to the wrong part of the Forum.
But I suspect they will be moving me back when they
realise I am trading on this thread,
I started this weekend to get everyone ready because I will be looking for trades and sharing them.
So you all need to know what is a positive and negative pair,
and this is what I'm going to share with you this weekend.

redfan May 2, 2020 5:55pm | Post# 11

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redfan May 2, 2020 5:56pm | Post# 12

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redfan May 2, 2020 5:56pm | Post# 13

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redfan May 2, 2020 5:59pm | Post# 14

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redfan May 2, 2020 5:59pm | Post# 15

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redfan May 2, 2020 6:05pm | Post# 16

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redfan May 2, 2020 6:08pm | Post# 17

https://www.myfxbook.com/forex-market/correlation

redfan May 2, 2020 6:17pm | Post# 18

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And this is where you find the calculation.
https://www.myfxbook.com/forex-market/correlation

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and this how you work it how.

Ican2020 May 2, 2020 11:19pm | Post# 19

Thanks man, you are dishing out good info here...

redfan May 3, 2020 4:54am | Post# 20

Thanks man, you are dishing out good info here...

Thank you for your comments.


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