Oh, and BTW: Mithen rules that EU and GU are in disagreement if both are not below or above DO level...
As simple as possible: 00 level trading
- #11,281
- Jul 17, 2014 3:48am Jul 17, 2014 3:48am
- | Additional Username | Joined Apr 2014 | 1,054 Posts
- #11,289
- Jul 17, 2014 4:10am Jul 17, 2014 4:10am
- Joined Jul 2008 | Status: Trader | 5,763 Posts
Sleep less, live fast, as it aint gonna last 
- #11,293
- Jul 17, 2014 4:18am Jul 17, 2014 4:18am
- | Additional Username | Joined Apr 2014 | 1,054 Posts
- #11,297
- Edited 4:45am Jul 17, 2014 4:30am | Edited 4:45am
{quote} I don't think there's much correlation between ej and gj. it would more ej and eu or gj and gu. check out this tool, it helped get a sense of what to look in terms of sync. http://fxtrade.oanda.ca/analysis/currency-correlation
There is also http://www.forexticket.com/en/tools/01-01-correlation which could interest you ;-)
But I badly expressed myself, talking about correlation.
In fact, it's more a visual sync that I'm looking for as Udine does on the 2 or 3 last hours.
To try to find visually the strengh (or lack of) which is in action and will (or not) push the pair in the right direction as you can see here with GJ and GU...
{quote} Hi Ff-fx, I check the correlation as follows: EJ > GJ and EU. GJ > EJ and GU. EU > EJ. GU > GJ. Best regards, Frietzak
{quote} Hi Yag, I'l try to explain why I have not taken those trades. Let's start with EJ. EJ opened with H1 green and turned H1 red so normally you would say place a pending short. However EU is H1 and D1 green, which means that euro rises. So you can not expect the euro to go down against the yen while it's winning ground against the dollar. Conclusion: no short trade on EJ.
It's the kind of synchronisation that I'm looking for too and you perfectly expressed it.
I don't know if Udine does the same or if he has a different approach... ?
- #11,298
- Jul 17, 2014 4:34am Jul 17, 2014 4:34am
- | Additional Username | Joined Apr 2014 | 1,054 Posts
{quote} Your welcome. Yes, you're right. I personally question the validity of using correlation of the pairs as a way to filter good trades from bad trades as the price movement appears to stand on its own for each pair. As a colleague and trader what do you think? I personally think it may be an unnecessary coplication but welcome your thoughts on the subject. Best regards, Frietzak
The reason is, that the market is constantly changing.
Have a look at the table below for correlation between EURJPY and GBPJPY...
+100 means they“re moving in the same direction, -100 in opposite direction.
This is on a D1 scale and it shows that correlation has clearly gone down a lot lately...
From mid June (39.4%) to end June (8.7%). My trade journal shows excellent results for this period...
EDIT: when correlation went below 0, my results weren“t as excellent as before...
- #11,299
- Edited 5:09am Jul 17, 2014 4:45am | Edited 5:09am
- | Joined Jun 2014 | Status: Trader | 576 Posts
Sync/trend of 'cross currencies' -- how I am looking at it:
* look at the majors (actually the vs. USD traded) of the cross, and pick where both are trending in the same direction
* eg. EJ: look at EU and UJ, if both green, look for EJ green, if both red, look for EJ red
* eg. EA: look at EU and AU, if both green, look for EA green, if both red, look for EA red
Having both components of the cross weak or strong increases the prob. of the cross keeping weak or strong.
Having one component up while the other down increases the prob. of ranging and spikes on the cross.
Įron
EDIT: and a screenshot for that
EDIT: saying green and red here means stronger and weaker, and not the candle color! Sorry for the confusion.
* look at the majors (actually the vs. USD traded) of the cross, and pick where both are trending in the same direction
* eg. EJ: look at EU and UJ, if both green, look for EJ green, if both red, look for EJ red
* eg. EA: look at EU and AU, if both green, look for EA green, if both red, look for EA red
Having both components of the cross weak or strong increases the prob. of the cross keeping weak or strong.
Having one component up while the other down increases the prob. of ranging and spikes on the cross.
Įron
EDIT: and a screenshot for that
EDIT: saying green and red here means stronger and weaker, and not the candle color! Sorry for the confusion.
- #11,300
- Jul 17, 2014 4:45am Jul 17, 2014 4:45am
- Joined Jul 2008 | Status: Trader | 5,763 Posts
Sleep less, live fast, as it aint gonna last