Daily range and correlation (?) | Forex Factory

Options

Permalinks
Print Thread

Similar Threads

MT4 MTF Correlation table and Correlation oscillator indicators 155 replies

Correlation and Tendency of EU and GU vs EUGBP? 1 reply

Day's first H4 candle correlation to daily candle 14 replies

Correlation between first 4 hour candle and daily candle 1 reply

How to get range of h/l on previous day's range? 1 reply

Daily range and correlation (?)

  • #1
  • First Post: Dec 23, 2006 1:37am Dec 23, 2006 1:37am
I have a question on how correlation is calculated. The correlation of the EUR/USD to the USD/CHF is around -97. Its the same with GBP/USD to the USD/CHF. Here are the average daily ranges of the three for months 09/2006 to 11/2006:

EUR/USD: 69
USD/CHF: 86
GBP/USD: 112

How does range enter into correlation figures? How is correlation figured?

Thanks.
"Its not where your at, but where your coming from"
  • #2
  • Dec 23, 2006 1:55am Dec 23, 2006 1:55am
May I ask you a question. What is correlation. I know the figure you are talking about because I have seen the chart. What does it mean and how can we apply it to our trading.
  • #3
  • Edited 3:41am Dec 23, 2006 3:18am | Edited 3:41am
These links can explain better than me typing. I would google correlation in your research. There are many ways to trade it or not trade it. Just to mention one, if you have an open position in one pair, and your technicals show to go in the same direction in another, but they are negatively correlated, you may not want to. This is just a basic explanation.

http://www.mataf.net/en/analysis-correlation.htm

http://proforex.blogspot.com/2006/05...rrelation.html

http://www.investopedia.com/articles.../05/051905.asp
"Its not where your at, but where your coming from"
  • #4
  • Last Post: Dec 23, 2006 5:00am Dec 23, 2006 5:00am
For Instance the gbpusd and eurusd move relatively in the same direction. The UsdChf moves in opposite direction of the above two.
0 traders viewing now