Disliked{quote} so you just want at least 2 pairs that are + 80% correlated in the weak position against two pairs +-80% in the strong position and you call that being in sync? the dollar is the benchmark so how does that affect it? if only there were a cheat sheet somewhere...correlation for dummies lolIgnored
First screenshot, clear enough. AUD is strong, right ? JPY is weak, right ? USD is also weak, right ?
Now, let´s forget about RmUp/RmDn, ADR, ... for a moment.
You´ll want to play the weak against the strong. In this case, long on AUDJPY and long on AUDUSD.
AJ and AU have a positive correlation of 93 and something % on a M15 TF, see screenshot, right ?
My avg trade duration (500+ trades is 12m32 secs) so I´ve pulled up M15 correlation as a reference.
By all means, take H1 or H4 as TF on the myfxbook website.
Now, the red and green blocks is my Trendmeter. Top row is AJ, bottom row AU. TF is M15 H1 H4 D1.
Both are above D1 (last column = green) but the H4 is not in agreement...
Therefore I will not take a long on any until both get "back in line" -> I want to see H4 and D1 on both in green.
Now, if the USD and JPY values would be way a part (i.e. USD much much stronger), I would simply look for AJ to be in sync with for example NJ, GJ, ... Why ? Because although NZD/GBP are not the strongest brothers, AJ still has strong correlation on a H1 TF with NJ and GJ. Ergo, play A, N, G against JPY. Would probably play A and N (the 2 strongest) against their weaker JPY brother.
That´s correlation and sync for dummies for you (and others of course).
LuXing
Wisdom begins in wonder