a bit dumb but i know you'll help - Correlation Question | Forex Factory

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a bit dumb but i know you'll help - Correlation Question

  • #1
  • First Post: Jul 6, 2009 4:52pm Jul 6, 2009 4:52pm
which pairs work in conjunction with each other
i have forgotten in respect that if eur/usd is rising which other pairs are rising in tandem and which reverse that trend
all pairs fall into those brackets,, so to try to stop taking opposing positions and blowing my foot off --could someone please help

i know its basic of basic but.......

thank you
  • #2
  • Jul 6, 2009 5:11pm Jul 6, 2009 5:11pm
try here

http://www.mataf.net/en/tools/correlation-table
The greatest enemy of a good plan is the dream of a perfect plan.
  • #3
  • Jul 6, 2009 5:44pm Jul 6, 2009 5:44pm
thank you steve
10% is now 20%

cheers
good luck


correlation was the word i couldnt remember---too many birthdays
  • #4
  • Oct 17, 2017 11:22pm Oct 17, 2017 11:22pm
Sorry, I'm newbie, can anyone answer my question.
If the base of one currency going up, and quote of it going down
Then what happen to other base on other currency?

Example:
USD/xx when up, then xx/USD down

Then what happen to
GBP/xx ?
EUR/xx ?
NZD/xx ?
AUD/xx ?
CAD/xx ?
CHF/xx ?
NOK/xx ?
SEK/xx ?
SGD/xx ?

Hope someone can help me
  • #5
  • Jan 31, 2018 9:28am Jan 31, 2018 9:28am
Quoting farisbiz29
Sorry, I'm newbie, can anyone answer my question. If the base of one currency going up, and quote of it going down Then what happen to other base on other currency? Example: USD/xx when up, then xx/USD down Then what happen to GBP/xx ? EUR/xx ? NZD/xx ? AUD/xx ? CAD/xx ? CHF/xx ? NOK/xx ? SEK/xx ? SGD/xx ? Hope someone can help me
It’s not possible to provide you a straight answer! Because, different trading pair means different story.
  • #6
  • Edited Feb 3, 2018 5:02am Feb 2, 2018 6:22pm | Edited Feb 3, 2018 5:02am
Quoting GeorgeBaile
{quote} It’s not possible to provide you a straight answer! Because, different trading pair means different story.
Agree.

Is correlation really important? I think it's better to not care much about correlation. Analyze your pairs, if you see one good signal, enter. If more than one pair shows a signal, enter only ONE of them which has the strongest signal and forget the rest.

Edit: it is important to enter only one pair if you analyze several pairs. if you enter more than one pair and one goes to wrong direction there is a risk all pairs (and for that reason your positions) goes wrong because of correlation. this applies if you trade long time frames. i dont know how well correlation works for shorter time frames.
  • #7
  • Feb 2, 2018 6:35pm Feb 2, 2018 6:35pm
Quoting waverhythm
{quote} Agree. Is correlation really important? I think it's better to not care much about correlation. Analyze your pairs, if you see one good signal, enter. If more than one pair shows a signal, enter only ONE of them which has the strongest signal and forget the rest.

absolutely correct, described
  • #8
  • Feb 13, 2018 1:41pm Feb 13, 2018 1:41pm
Correlation are important (in my opinion). They can help you time trades and give you an idea on when to exit trades.

The important thing to remember is a "correlation is good until it ain't".

https://www.oanda.com/forex-trading/...cy-correlation
  • #9
  • Last Post: Feb 17, 2018 11:09pm Feb 17, 2018 11:09pm
Quoting jacko4
which pairs work in conjunction with each other i have forgotten in respect that if eur/usd is rising which other pairs are rising in tandem and which reverse that trend all pairs fall into those brackets,, so to try to stop taking opposing positions and blowing my foot off --could someone please help i know its basic of basic but....... thank you
Correlation is important. But it is not a sole criteria to take an entry. Like EURUSD is going up, then take a short on xxx/yyy pair. Remember one thing every pair has Its own unique characteristics. Correlation can be a supporting stuff but not the decision making one.
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