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Trading correlation pairs by using the other pairs

  • #361
  • Edited 3:31am May 26, 2020 2:32am | Edited 3:31am
up and running
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close trade with profit.
  • #362
  • May 26, 2020 3:15am May 26, 2020 3:15am
Quoting Shabs19
{quote} Check for USD strength against the other majors, EU, GU, UJ then you check the AUD strength against the majors. GA, EA, AJ Takes only a few minutes at best, there is no indicator. Why majors ? That is where the significant volume will be. USD down -3, AUD Up +3, simple maths, you know the rest.

>>>>Thanks for the reply,. My question was about whether the indicators floating around forex factory account for difference in pip values etc. so as to make sure the indicators are actually making an apples to apples comparison.

https://www.tradeciety.com/the-main-...-forex-majors/

Forex
Pair
Pip-value
standard lot
Pip-value

mini lot
Pip-value
micro lot
GBP/USD10
USD/JPY9.2
USD/CAD7.7
AUD/USD10
EUR/USD10
USD/CHF10.30
  • #363
  • Edited 4:34am May 26, 2020 4:09am | Edited 4:34am
Quoting dagoods
{quote} >>>>Thanks for the reply,. My question was about whether the indicators floating around forex factory account for difference in pip values etc. so as to make sure the indicators are actually making an apples to apples comparison. https://www.tradeciety.com/the-main-...-forex-majors/ Forex Pair Pip-value standard lot Pip-value mini lot Pip-value micro lot GBP/USD10 USD/JPY9.2 USD/CAD7.7 AUD/USD10 EUR/USD10 USD/CHF10.30
I look at Margin to ADR comparisons, in business this would be the cost of doing business vs profit margin. Use your capital the best way possible.
AUDUSD & AUDJPY are better value than GBPUSD & GBPJPY
Best value where the differnce between the red/green numbers is the smallest.

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It never gets easier, you just get better
  • #364
  • May 26, 2020 4:18am May 26, 2020 4:18am
Hi to all....i'm trading classic inverted spread correlation.... EU vs UChf
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  • #365
  • May 26, 2020 5:11am May 26, 2020 5:11am
Quoting Shabs19
{quote} I look at Margin to ADR comparisons, in business this would be the cost of doing business vs profit margin. Use your capital the best way possible. AUDUSD & AUDJPY are better value than GBPUSD & GBPJPY Best value where the differnce between the red/green numbers is the smallest. {image}
Have you put the red and green stickers on the ones with numbers,
and where do you find this,
great input by the way,
thank you.
  • #366
  • May 26, 2020 5:13am May 26, 2020 5:13am
Quoting SithFX
Hi to all....i'm trading classic inverted spread correlation.... EU vs UChf {image}
Is this some sort of indicator
and do you just get your signals of the green and red arrows.
Great input
thank you.
  • #367
  • May 26, 2020 5:16am May 26, 2020 5:16am
GBP seems to run....
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  • #368
  • May 26, 2020 5:17am May 26, 2020 5:17am
I found something last night, it's a nice and compact
I just don't know how to use it yet,
I've asked the question, where I got it from hopeing for an answer soon,
here is a picture.

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  • #369
  • May 26, 2020 5:22am May 26, 2020 5:22am
Got out to soon,

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  • #370
  • Edited 6:38am May 26, 2020 6:14am | Edited 6:38am
Quoting redfan
{quote} Have you put the red and green stickers on the ones with numbers, and where do you find this, great input by the way, thank you.
The numbers are my input, website is here for many statistics, such as most/least volatile pairs, average dily ranges over last 5 years.
You can sort by pairs by highest/lowest by clicking on arrows at the top of the table also.
Margin is not mentioned here, I have a chart based indicator for that.

https://offbeatforex.com/forex-avera...y-range-table/

Quoting redfan
Got out to soon, {image}
ADR is a good way to set targets, eg. USDJPY ADR for the last 5 days is just under 50 pips, measure from the high of this morning down 107.44 approx target
which is around a previous low from 22nd May. (confluence).
If price went north , then this target would have been the Previous weeks high 108.08 also approx 50 pips from this mornings low.

Quoting redfan
I found something last night, it's a nice and compact I just don't know how to use it yet, I've asked the question, where I got it from hopeing for an answer soon, here is a picture. {image}
It could be an RSI or stochastic oscillator dashboard. Oversold/Overbought readings.

Quoting MQLTrade
GBP seems to run.... {image}
Positive News for GBP with the government announcement that most retail shops being allowed to re-open by 1st to 2nd week of June.
The larger move today to compensate for yesterday's slow trading.
Also government escaping any big name resignations\ sackings is also good news for Govt.
It never gets easier, you just get better
  • #371
  • May 26, 2020 10:07am May 26, 2020 10:07am
Quoting redfan
I found something last night, it's a nice and compact I just don't know how to use it yet, I've asked the question, where I got it from hopeing for an answer soon, here is a picture. {image}
Here we go, as I thought:

https://www.forexfactory.com/showthr...8#post12964268

https://www.forexfactory.com/showthr...9#post12958929

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It never gets easier, you just get better
  • #372
  • May 26, 2020 12:13pm May 26, 2020 12:13pm
Quoting Shabs19
{quote} The numbers are my input, website is here for many statistics, such as most/least volatile pairs, average dily ranges over last 5 years. You can sort by pairs by highest/lowest by clicking on arrows at the top of the table also. Margin is not mentioned here, I have a chart based indicator for that. https://offbeatforex.com/forex-avera...y-range-table/ {quote} ADR is a good way to set targets, eg. USDJPY ADR for the last 5 days is just under 50 pips, measure from the high of this morning down 107.44 approx target which is around...
I just got back home and I'm amazed at the amount of stuff you put on this thread,
some great input,
I have some questions. This is the first one you say you put the red and green stickers numbers on yourself,
how do you get these numbers?
Is there some formula,
And the second question this morning. USDJPY My initial target was to take profit at 107.44
Then there was a change of colour and I decided to get out.
Which brings me to the question of the daily range
I am using, ATR 20 =500 RANGE=SPREAD=16 is this indicator giving me the same readings as the ADR
Thank you for all your hard work
  • #373
  • May 26, 2020 2:20pm May 26, 2020 2:20pm
Quoting SithFX
Hi to all....i'm trading classic inverted spread correlation.... EU vs UChf {image}
update...
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  • #374
  • May 26, 2020 2:24pm May 26, 2020 2:24pm
Quoting redfan
{quote} I just got back home and I'm amazed at the amount of stuff you put on this thread, some great input, I have some questions. This is the first one you say you put the red and green stickers numbers on yourself, how do you get these numbers? Is there some formula, And the second question this morning. USDJPY My initial target was to take profit at 107.44 Then there was a change of colour and I decided to get out. Which brings me to the question of the daily range I am using, ATR 20 =500 RANGE=SPREAD=16 is this indicator giving me the same...
I don't trade correlations, but I do look at currency & currency pair strengths using the maDash and Price Structure. The thread is interesting, So I am giving input as required. I have learnt a lot and discarded a lot as well, over the years. To clear the confusion :

ATR is Average True Range which is measuring volatility of a currency pair. It compares the Highest High or Highest Low from the close of the previous bar.
The highest reading is compared to the previous close. When price is flat (ranging) the ATR is low and when price is rising or falling rapidly then the ATR is rising.
Used very often in the calculation of placing of stoplosses. The ATRsetting is usually 14 periods and is displayed as a number (current calculation) or a line graph below the main chart showing history. The ATR can be for any period from M1 to MN1

ADR is Average Daily Range which is literally averaging the High to Low range of a currency pair over a set number of Days. So for example, 5 days ADR would be the total of the 5 days ranges added together divided by 5. This number is usually quoted as a number of the 5 days ADR and also the Current days ADR
Sometimes is displayed as 2 lines as chart indicator, plotting the potential High price that could be reached from current Low or Vice versa. The potential Low price measured from the current High. Useful info to know when to wind in trades or tighten stops, if daily range has been met or close to it.
The ADR period ould be the same number whatever period setting of your chart.

On the USDJPY pair today, the ADR value was around 50 pips daily average range, High to Low, so in a downtrend, measure down from the Highest High of the day to project the potential Low, which was 107.44 and that price was also close to a previous Low where market rallied, so 2 good reasons to place a TP there. It worked well today.

The red\green numbers are from a screen marking software that I have, which I often use to take screenshots and then mark up with notes of any info or charts I find useful and save. It is just to highlight the highest to lowest values on that diagram, thats all.
It never gets easier, you just get better
  • #375
  • May 27, 2020 12:01am May 27, 2020 12:01am
Quoting Shabs19
{quote} I don't trade correlations, but I do look at currency & currency pair strengths using the maDash and Price Structure. The thread is interesting, So I am giving input as required. I have learnt a lot and discarded a lot as well, over the years. To clear the confusion : ATR is Average True Range which is measuring volatility of a currency pair. It compares the Highest High or Highest Low from the close of the previous bar. The highest reading is compared to the previous close. When price is flat (ranging) the ATR is low and when price is rising...
That was explained very clearly,
Again, great input,
Thank you.
  • #376
  • May 27, 2020 12:34am May 27, 2020 12:34am
Good morning & green pips to all
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  • #377
  • Edited 4:50pm May 27, 2020 4:35pm | Edited 4:50pm
Quoting dagoods
{quote} That was my experience with correlation as well ( with testing, actual correlation indicators became useless in my mind). Any suggestions you can offer on finding the best currency to buy and the best to sell other than just strongest Vs. weakest? I'm not trying to over-complicate things, I'm just interested to educate myself. So far it looks to me what redfan is showing is using strength indicators and using divergence lines to identify timing (which seems like a fine idea to me). I suspect the correlation indicators are simply to illustrate...
hi dagoods,

Firstliy i want to show you in my message sample.

Quoting P.Action
Good technique but something is missing. For example you only use usd based currencies and common ones. I think Eur and chf correlation will deteriorate in these days eurchf should go up from 1.0526 . Generally you should find the best money to buy and the best money to sell. Sometimes this could be correlation pairs. generalizing is wrong. Anyway thanks for your sharing.
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so in this picture selling chf and selling usd is right choice. buying eur is right choice.
but when you use eu and uchf correletion. when eu up you enter sell poition usdchf(and vice versa) that is not right choice. because two of them is short side.

my message is about "generalizing is wrong." eurusd and usdchf seems inverse but you should prefer one of them. sometimes eur sometimes usd and somtimes chf.


for example last week you should choose buy nzd and sell jpy or usd. because usd and jpy corelated at those days in %0.48 band(or 50 pips). this show me that corelation moneys are variable pairs and variable times. how to choose correct pair is broad subject. anyway these things is not important if thread's idea is working. I don't want to break the spell. take care.
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  • #378
  • May 27, 2020 8:11pm May 27, 2020 8:11pm
Quoting P.Action
{quote} hi dagoods, Firstliy i want to show you in my message sample. {quote} {image} so in this picture selling chf and selling usd is right choice. buying eur is right choice. but when you use eu and uchf correletion. when eu up you enter sell poition usdchf(and vice versa) that is not right choice. because two of them is short side. my message is about "generalizing is wrong." eurusd and usdchf seems inverse but you should prefer one of them. sometimes eur sometimes usd and somtimes chf. for example last week you should choose buy nzd and sell...

A Picture is worth a thousand words. Tx for taking the time to post that PA. That makes sense to me now.
  • #379
  • May 28, 2020 1:19am May 28, 2020 1:19am
Quoting P.Action
{quote} hi dagoods, Firstliy i want to show you in my message sample. {quote} {image} so in this picture selling chf and selling usd is right choice. buying eur is right choice. but when you use eu and uchf correletion. when eu up you enter sell poition usdchf(and vice versa) that is not right choice. because two of them is short side. my message is about "generalizing is wrong." eurusd and usdchf seems inverse but you should prefer one of them. sometimes eur sometimes usd and somtimes chf. for example last week you should choose buy nzd and sell...
Great input
thank you
  • #380
  • May 28, 2020 1:20am May 28, 2020 1:20am
Up and running,
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