Best Thread Correlation Trading - Basic Ideas and Strategies

[FX4Newbies]

Correlation is one of the key concepts in the forex market. This market is one whole and all the pairs are interconnected.

Very true, but I think many traders don't use it, which is why I like this thread.

 

[ChelseaR]

Very true, but I think many traders don't use it, which is why I like this thread.

Totally agree! Correlation not only helps in finding opportunities but also in avoiding overexposure and managing risks to similar moves across pairs.

 

[Simon54]

Just passing through. I like the idea of your thread.

Correlation is also great for determining when a counter-trending price action may be in process. I like to use two negatively correlated instruments...like EurUsd and UsdChf for example...if you're into FX.

Here is a correlation table that you might like. It works on Live accounts. Not sure it would work on a Demo. Version 1.2.5 is out. There may have been an even more recent version...not sure about that though.

MT4 MTF Correlation table and Correlation oscillator indicators

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Enjoy!

Great! Does eurusd & usdchf correlation stays consistent or does it shift a lot?