FX4Newbies
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Very true, but I think many traders don't use it, which is why I like this thread.
Best Thread Correlation Trading - Basic Ideas and Strategies
Totally agree! Correlation not only helps in finding opportunities but also in avoiding overexposure and managing risks to similar moves across pairs.
Great! Does eurusd & usdchf correlation stays consistent or does it shift a lot?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!
FX4Newbies
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Correlation can vary. I would say off the top of my head, they may operate negatively about 80% of the time... meaning, if one is going up, the other is going down. The actual percentage may even be higher. You can also examine correlations by timeframe.
Totally agree! Correlations can change with timeframes but it is useful to keep an eye specially during short term trades.
FX4Newbies
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Absolutely!!!
