Forex Correlation

[Dooped]

Looking at how correlated the USD crosses are on Forex is it worth trading more than one pair on a larger timeframe 1hr-Daily? From experience setups on swing trades are like buses in that they all come at once and either failing or succeeding together.

One approach I started to take was to split risk across two or more USD pairs that had setups at the same time. So it seems that the correlation has benefit in that respect along with confirming possible turning points by multiple pairs reaching resistance/support at the same time.

I'm currently thinking of concentrating my efforts purely on EurUsd for Forex and looking at other markets to swing trade as well.

 

[Probafix]

If you were to compare some of the major pair in the forex market, you would immediately notice that many have an uncanny resemblance in their pattern.. like EUR/USd the above two pair move in such a similar manner..

 

[pssonice]

Correlation can be measured. Give me your results and u will get an answer

without measuring or calculating anything everything is possible but the probability of the expected event is usually zero.

 

[alyssataylor1962]

When trading stocks traders can take advantage of volume which is very useful when trading technically, forex do not have volume.The Forex Correlation Code is a forex trading system that exploits the correlation patterns between currencies pairs which have been happening every minute in the forex market.

 

[lbranjord]

Looking at how correlated the USD crosses are on Forex is it worth trading more than one pair on a larger timeframe 1hr-Daily? From experience setups on swing trades are like buses in that they all come at once and either failing or succeeding together.

One approach I started to take was to split risk across two or more USD pairs that had setups at the same time. So it seems that the correlation has benefit in that respect along with confirming possible turning points by multiple pairs reaching resistance/support at the same time.

I'm currently thinking of concentrating my efforts purely on EurUsd for Forex and looking at other markets to swing trade as well.

I still try to avoid coorelatting pairs. Never had much luck splitting up lots between two, it seems to make things more complex without any monetary reward. Sometimes I'll have coorelatting pairs but on diff time frames. Ex USD/JPY on daily, EUR/JPY on 4hr. If they have different goals and you want to grab a different move, I don't think it's a huge problem.