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Using pairs to confirm moves of others

  • #1
  • First Post: Apr 26, 2007 8:30am Apr 26, 2007 8:30am
hi all,

I would like to know, how to confirm the move of EUR/USD by checking other pairs movment? like GBP/EUR...

thanks for help
Don't take life too seriously; you will never get out of it alive
  • #2
  • Apr 26, 2007 11:00am Apr 26, 2007 11:00am
Quoting wael
hi all,

I would like to know, how to confirm the move of EUR/USD by checking other pairs movment? like GBP/EUR...

thanks for help
Use the search feature and look for coorelating pairs. Also search on the internet for forex currency pair coorelation
  • #3
  • Apr 26, 2007 12:50pm Apr 26, 2007 12:50pm
thanks WHTenn for pointing me to the right direction, thats the experssion I was looking for
Don't take life too seriously; you will never get out of it alive
  • #4
  • Apr 26, 2007 12:53pm Apr 26, 2007 12:53pm
Quoting wael
thanks WHTenn for pointing me to the right direction, thats the experssion I was looking for
Team Work!
  • #5
  • Apr 26, 2007 6:03pm Apr 26, 2007 6:03pm
Quoting WHTenn
Use the search feature and look for coorelating pairs. Also search on the internet for forex currency pair coorelation
Coor elation?A feeling of intense euphoria after quickly imbibing the requisite quantity of a certain type of cold fizzy beer.
  • #6
  • Apr 26, 2007 11:09pm Apr 26, 2007 11:09pm
Quoting TheGreatMilenko
Coor elation?A feeling of intense euphoria after quickly imbibing the requisite quantity of a certain type of cold fizzy beer.
Yeah, it is getting close to the weekend
  • #7
  • Oct 1, 2008 8:30pm Oct 1, 2008 8:30pm
i think it would be better to confirm Euro/Gbp with Euro/usd....due to most of the time currencies has move by usd.....
  • #8
  • Aug 19, 2010 10:40am Aug 19, 2010 10:40am
Here is one way to use pairs to confirm moves of others:

http://www.forexfactory.com/showthre...87#post3961287
Open to new approaches.
  • #9
  • Aug 19, 2010 11:33am Aug 19, 2010 11:33am
You could use GbpUsd. GU and EU usually moves along the same lines.

GU usually moves before EU, so if you see GU spike upwards 50 pips, soon after expect EU to move 20 pips later. EU is always late to the game. I've notice the market would moved hard in on direction for most pairs and usually an 30 min to an hour later EU finally makes the same move.

Same goes for AudUsd and NzdUsd. If AU moves then expect NU to move afterwards.

This all usually happens when the market is in perfect correlation. In the past month, this hasn't been the case. So be careful with trading correlated pairs in deciding entry/direction.
  • #10
  • Aug 19, 2010 11:56am Aug 19, 2010 11:56am
There is some useful data here:

http://www.dailyfx.com/forex/technic...undations.html

The number in black, the closer it is to 1.0 the more positive correlation and the negative red number the closer that is to -1.0 the more negative the correlation.
It never gets easier, you just get better
  • #11
  • Aug 19, 2010 12:06pm Aug 19, 2010 12:06pm
Quoting Shabs19
There is some useful data here:

http://www.dailyfx.com/forex/technic...undations.html

The number in black, the closer it is to 1.0 the more positive correlation and the negative red number the closer that is to -1.0 the more negative the correlation.
The correlation is useful but not always reliable. The only reliable correlation so far is between AUD/USD and NZD/USD. SO FAR, it's close to 1:1. EUR/USD and USD/CHF used to be so closely correlated they used to be called "Mirror" now that's broken.

Have to be really careful using correlation. Lost tons of money and opportunities using correlation as confirmations.

Just my 2 cents
Make your losses in demo. Earn your profits live.
  • #12
  • Last Post: Aug 19, 2010 3:09pm Aug 19, 2010 3:09pm
Don't put all your eggs in one correlation basket.
Open to new approaches.
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