Trading correlation pairs by using the other pairs | Page 14 | Forex Factory

Options

Go to
Permalinks
Print Thread

Similar Threads

MT4 MTF Correlation table and Correlation oscillator indicators 155 replies

Trading Crosses Using Correlation and Strength of Major Pairs 2 replies

Tribute to Madlen and other good programmers- Correlation indicators 2 replies

Using usd/chf - eur/usd correlation to see moves in EUR/USD 46 replies

Using PNN to capture the correlation between past and present data... 1 reply

Attachments: Trading correlation pairs by using the other pairs
Exit Attachments

Trading correlation pairs by using the other pairs

  • #261
  • May 17, 2020 11:44am May 17, 2020 11:44am
Quoting Shabs19
{quote} I would add one tip whilst your talking about Marketwatch. If you left click & hold down on a currency pair and drag that symbol onto your existing chart, the chart will update to the symbol that you just dragged. Maybe some will find that a quick way to change a symbol whilst keeping the same template loaded.

Yes, that's a great tip great input
Thank you.
  • #262
  • May 17, 2020 11:46am May 17, 2020 11:46am
Quoting Shabs19
Nice correlation indicator here: https://www.mql5.com/en/market/produ...tab_p_overview {image}
Yes it looks nice indicator,
probably put that on one of my charts this week and check it out
Thank you.
  • #263
  • May 17, 2020 12:26pm May 17, 2020 12:26pm
Quoting MQLTrade
I asked to programmer to make a new correlation dashboard based on correlation between currencies and not between crosses..... maybe this can improve trading results stay safe and have a great weekend
Sorry I didn't get back to you on this.
I meant to comment on this, But got distracted and then Forgot,
But better late than never,

If you can send him or her this picture,
Attached Image (click to enlarge)
Click to Enlarge Name: new list.png Size: 917 KB

I started using it, I check out all the sequences before every trade,
When I find one,
I then check currency strength meter and where are the moving averages,
if everything lines up I take the trade,
  • #264
  • May 17, 2020 12:57pm May 17, 2020 12:57pm
Quoting tiborf71
{quote} when creating groups, we group them according to the base currency. these pairs move in one direction and look for the difference between the pairs. this is a good example of the trade of audusd, usdcad versus another, as they belong to two different groups and their interconnection can result in huge differences.and this can cause a huge loss.

I understand TY. They call the USD the "benchmark" currency, so that makes sense.

What I did not understand was why dollar yen in particular. TX again
  • #265
  • May 17, 2020 1:08pm May 17, 2020 1:08pm
Quoting MQLTrade
I asked to programmer to make a new correlation dashboard based on correlation between currencies and not between crosses..... maybe this can improve trading results stay safe and have a great weekend

Would it perhaps make some sense then to have any indicators made relative to the USD. If the USD is indeed a "benchmark currency", then tt seems like a no brainier to use the USD as the "norm" or baseline that everything else moves to measure against to determine true "strength" or "weakness" in any indicators or Eas that are made.

In other words strength or weakness, relative to the usd, indicators

and correlation indicators that do the same, perhaps

Just a thought. I'd prefer not to waste any coders time and have us flesh out what makes the most sense to get made first.

The reason I think taking the USD as the benchmark or out of the equation entirely is because my suspicion is the correlations you see between pairs are simply a function of the USD, which in a sense has always been the "leader" traditionally. When the US sneezes the world gets a cold kind of a thing.

I'm not a coder and don't want to over complicate. Just some food for thought. I mean i could be just rambling lol . But I think perhaps coders should be on exploring that simple idea (setting up indicators to use USD as benchmark) b/c it seems to make some sense.

IF the indicator is set up to look like a sine cosine and the usd is set to be always the midpoint or mean, it would be a very visual indicator of where a currency sits in relation to the usd. so the usd would always have a value of 50% and the other currencies would travel(oscillate) around it from 0% to 100%.... hope that makes some sense....

Again, just a thought.
  • #266
  • May 17, 2020 1:55pm May 17, 2020 1:55pm
Quoting dagoods
{quote} Would it perhaps make some sense then to have any indicators made relative to the USD. If the USD is indeed a "benchmark currency", then tt seems like a no brainier to use the USD as the "norm" or baseline that everything else moves to measure against to determine true "strength" or "weakness" in any indicators or Eas that are made. In other words strength or weakness, relative to the usd, indicators and correlation indicators that do the same, perhaps Just a thought. I'd prefer not to waste any coders time and have us flesh out what makes...
I'm no expert on this. I have read quite a lot in recent weeks, I cannot remember where I read it
One expert who works for one of the financial companies said the EURUSD is the lead pair,
The reason was when the EU makes a shift in monetary policies or when there is a major change in the European economy both the EUR AND GBP are affected. by Good news or bad,
He also said the EU should just be observed and not traded,
Watch what it's is doing, and then trade the other currencies,
he did say there was a trading system called the follow the leader,
  • #267
  • May 17, 2020 4:00pm May 17, 2020 4:00pm
Maybe this graphic could explain why EURUSD, & USDJPY are the most heavily traded currency pairs.

Attached Image
It never gets easier, you just get better
  • #268
  • May 17, 2020 8:42pm May 17, 2020 8:42pm
Quoting MQLTrade
I asked to programmer to make a new correlation dashboard based on correlation between currencies and not between crosses..... maybe this can improve trading results stay safe and have a great weekend
Array data to calculate the correlation coefficient is the index of each currency?
  • #269
  • May 18, 2020 3:01am May 18, 2020 3:01am
UP AND RUNNING

Attached Image (click to enlarge)
Click to Enlarge Name: EURAUD MON.png Size: 74 KB
  • #270
  • May 18, 2020 3:07am May 18, 2020 3:07am
MOVING STOP

Attached Image (click to enlarge)
Click to Enlarge Name: MSTOP.png Size: 97 KB
  • #271
  • May 18, 2020 3:14am May 18, 2020 3:14am
Trailing Sl
Attached Image (click to enlarge)
Click to Enlarge Name: EURGBPH1.png Size: 26 KB
Trade what you See not what you Think.
  • #272
  • May 18, 2020 3:18am May 18, 2020 3:18am
Out for a quick profit looking for another one.
  • #273
  • May 18, 2020 7:01am May 18, 2020 7:01am
Quoting old.ai
{quote} Array data to calculate the correlation coefficient is the index of each currency?
You are free to choose but mostly the last 50 bars of the close is used to calculate the correlation.

Gud luck and stay green always!

Jibala
PDF & BCC (Patience Discipline Focus & Belief Confidence Consistency)
  • #274
  • May 18, 2020 7:18am May 18, 2020 7:18am
Attached Image (click to enlarge)
Click to Enlarge Name: MOVING STOP.png Size: 99 KB


MOVING STOP
  • #275
  • May 18, 2020 7:21am May 18, 2020 7:21am
Quoting redfan
{image} MOVING STOP
Attached Image (click to enlarge)
Click to Enlarge Name: 11111.png Size: 99 KB
  • #276
  • May 18, 2020 10:30am May 18, 2020 10:30am
Quoting old.ai
{quote} Array data to calculate the correlation coefficient is the index of each currency?
Hi! I asked for Correlation Table between Currecy index.... ex. EUR vs USD....

This evening i will have beta version to try.....i will tell u
  • #277
  • May 18, 2020 2:26pm May 18, 2020 2:26pm
This is beta test, he send to me......i have to try, but it's exactly how i ask to him......a complete suite.

Now let's see if it works
Attached Image (click to enlarge)
Click to Enlarge Name: 1.png Size: 31 KB
  • #278
  • May 18, 2020 2:32pm May 18, 2020 2:32pm
Quoting MQLTrade
This is beta test, he send to me......i have to try, but it's exactly how i ask to him......a complete suite. Now let's see if it works {image}
Is this the finished indicator. It looks good when you going to start testing it.
  • #279
  • May 18, 2020 2:41pm May 18, 2020 2:41pm
Quoting MQLTrade
This is beta test, he send to me......i have to try, but it's exactly how i ask to him......a complete suite. Now let's see if it works {image}
Just one question, the currency correlation dashboard, should this not be showing currency pairs that are correlated, not actual currencies ?
It never gets easier, you just get better
  • #280
  • May 18, 2020 2:56pm May 18, 2020 2:56pm
Quoting Shabs19
{quote} Just one question, the currency correlation dashboard, should this not be showing currency pairs that are correlated, not actual currencies ?
Sorry i don't understand what u meaning. Dashboard Correlation i think must say for exaple USD how is correleted with other currencies....strength give direction

Example: correlation USD & NZD is -70%...great, they are moving on opposite way.....NZD is stronger than USD, so NZDUSD is to BUY........this is my thinking
0 traders viewing now