How you doing all ?
I think I might be able to share a bit of insight to the whole correlation thing for you, Scorpion.
Gold, like the Swiss Franc is a safe haven in times of turmoil of the U.S Dollar.
So generally, if you have a weaker dollar, you have stronger gold prices and vice versa.
Take a look at the 4hr charts attached for Gold & USDJPY for the last few weeks. Whilst the correlation is not perfectly opposite, we can clearly see Gold falling and therefore, Dollar rising. Over the lat month or so look how the USD is shaped like a 'W', whilst gold is an 'M'.
Without looking it's probably not too far off the mark for me to say that a 4hr USDCHF chart would also be very similar to that of USDJPY.
So, what valuable information can we squeeze from this ??
Gold falling, look to short either EURUSD or GBPUSD and/or look for possible long positions of USDJPY & USDCHF.
Personally I like to take on all 4, which would spread my risk.
Bad news from UK will help my cable position but good news from Euroland will hinder slightly my Euro position.
So to summarize.
1) Identify Gold strength or weakness
2) Look to trade the Majors accordingly
Dan is a whizz at this sort of thing and has taught me a lot about it. I'm sure he'll tell you a lot more than I can, including the relationships between all other pairs.
He should also be awarding me some gold stars I hope.
Drop him a line and get into his Trade Room where he goes into detail about this sort of thing each morning. It's very good and by far the best room I've ever been in.
Happy Dayz are here again..............
I think I might be able to share a bit of insight to the whole correlation thing for you, Scorpion.
Gold, like the Swiss Franc is a safe haven in times of turmoil of the U.S Dollar.
So generally, if you have a weaker dollar, you have stronger gold prices and vice versa.
Take a look at the 4hr charts attached for Gold & USDJPY for the last few weeks. Whilst the correlation is not perfectly opposite, we can clearly see Gold falling and therefore, Dollar rising. Over the lat month or so look how the USD is shaped like a 'W', whilst gold is an 'M'.
Without looking it's probably not too far off the mark for me to say that a 4hr USDCHF chart would also be very similar to that of USDJPY.
So, what valuable information can we squeeze from this ??
Gold falling, look to short either EURUSD or GBPUSD and/or look for possible long positions of USDJPY & USDCHF.
Personally I like to take on all 4, which would spread my risk.
Bad news from UK will help my cable position but good news from Euroland will hinder slightly my Euro position.
So to summarize.
1) Identify Gold strength or weakness
2) Look to trade the Majors accordingly
Dan is a whizz at this sort of thing and has taught me a lot about it. I'm sure he'll tell you a lot more than I can, including the relationships between all other pairs.
He should also be awarding me some gold stars I hope.
Drop him a line and get into his Trade Room where he goes into detail about this sort of thing each morning. It's very good and by far the best room I've ever been in.
Happy Dayz are here again..............