All the pairs I trade are based off the USD, and in many successful trades I've observed correlation between the pairs (i.e. rising EUR/USD falling USD/JPY)
When I determine which direction to trade, I look at each chart independently and see if there's valid signals
It makes sense that these pairs can be uncorrelated, as each represents an entirely different country/economy. Additionally, some currencies are classified differently than others like NZD and CAD which are commodity currencies.
But I always get nervous when I notice that the trades I've entered aren't all correlated in direction
Should this be a concern? Would it be better for me to sit on the sidelines when the trade signals I'm receiving are not in correlated direction?
When I determine which direction to trade, I look at each chart independently and see if there's valid signals
It makes sense that these pairs can be uncorrelated, as each represents an entirely different country/economy. Additionally, some currencies are classified differently than others like NZD and CAD which are commodity currencies.
But I always get nervous when I notice that the trades I've entered aren't all correlated in direction
Should this be a concern? Would it be better for me to sit on the sidelines when the trade signals I'm receiving are not in correlated direction?