Joined Mar 2008
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Status: Cointegrated Member
|621 Posts
I've exploring the world of correlation recently. Not just single 1 to 1 correlation, but how all currencies correlate to one another. Have noticed that when the market is in consolidation most currencies drift toward 0 correlation. Their prices may be going in different directions for a brief period of time, but on this indicator the lines will become straight, overlap eachother and be near 0.
After spending a few hours on it so far, the best time to enter seems to be just after the above mentioned "0 state", they start to spread apart either higher or lower. At that time, seems to be best to start watching the Gann hi-lo. More to come.