Guest indoshare Posted March 23, 2011 Report Share Posted March 23, 2011 Hi Guys, Would someone list the currency pairs that very closely correlate or move together. and also currency pairs that move completely opposite directions. please help me on this. Thanks. Indoshare Quote Link to comment Share on other sites More sharing options...
askalas Posted March 23, 2011 Report Share Posted March 23, 2011 Have a look here: http://www.mataf.net/en/tools/01-01-correlation Quote Link to comment Share on other sites More sharing options...
Guest indoshare Posted March 23, 2011 Report Share Posted March 23, 2011 thanks. now can somebody tell me which pairs move together but one delays a bit and then follows.. please Quote Link to comment Share on other sites More sharing options...
askalas Posted March 23, 2011 Report Share Posted March 23, 2011 Yeah, that would be awesome :D Sorry for the sarcasm but a perfectly lagging and correlated pair would be a true holy grail. If you aim in this direction you might find pairs that lag from time to time but I very much doubt you'll find one that lags consistently. Quote Link to comment Share on other sites More sharing options...
Guest indoshare Posted March 23, 2011 Report Share Posted March 23, 2011 anyone could share? Quote Link to comment Share on other sites More sharing options...
shabz Posted March 23, 2011 Report Share Posted March 23, 2011 Try EURUSD & USDCHF , opposite correlation. Which one moves first anyones guess. Try using strength meter alongside as well Quote Link to comment Share on other sites More sharing options...
soundfx Posted March 24, 2011 Report Share Posted March 24, 2011 Hi Guys, This is the best info. I've seen concerning correlation with regard to trading crosses, thanks to a poster on another forum: Example: GBPUSD candles moving up STRONG and USDCHF candles moving UP STRONG = GBPCHF moving up STRONG (Actually this means that the USD is getting weak against the GBP and at the same time the USD is getting strong against the CHF) Interpret: Candles on BOTH GBPUSD and USDCHF are moving up together strong = STRONG move up on GBPCHF (but, at almost 1.7:1 ratio!! GBPJPY doing this is almost a 2:1 ratio!) The 9 Strength-Weakness Correlation positions: 1. GBP/USD Up and USD/CHF Up - Cross will move UP STRONG (Primary trade objective moves) 2. GBP/USD Down and USD/CHF Down - Cross will move DOWN STRONG (Primary trade objective moves) 3. GBP/USD Up and USD/CHF Down equally - Cross will REMAIN FLAT (Don’t trade these moves) 4. GBP/USD Down and USD/CHF Up equally - Cross will REMAIN FLAT (Don’t trade these moves) 5. GBP/USD Up and USD/CHF FLAT - Cross will move UP MODERATELY (Can bring decent profits) 6. GBP/USD FLAT and USD/CHF Up - Cross will move UP MODERATELY (Can bring decent profits) 7. GBP/USD Down and USD/CHF FLAT - Cross will move DOWN MODERATELY (Can bring decent profits) 8. GBP/USD FLAT and USD/CHF Down - Cross will move DOWN MODERATELY (Can bring decent profits) 9. GBP/USD FLAT and USD/CHF FLAT - Cross will remain FLAT (Market is undecided – leave alone) askalas and Sesshoumaru 2 Quote Link to comment Share on other sites More sharing options...
askalas Posted March 24, 2011 Report Share Posted March 24, 2011 Hi soundfx. Can you remember where you found this info? There are a couple of things that comes to my mind when reading this. First, we are talking about a triangular relation here where GBPUSD*USDCHF*(1/GBPCHF)=1 (+/- minor market imperfektions). This means we can calculate GBPCHF using GBPUSD and USDCHF where GBPCHF = GBPUSD*USDCHF. Consequently, any one-directional movement of GBPUSD/USDCHF is greater in GBPCHF. But! This says nothing about the future movements. You can easily calculate the above but it still says nothing about whats to come. Simply put, you can not just watch GBPUSD/USDCHF move up and then simply take a GBPCHF long position. Well actually you can, but then its gambling :) Quote Link to comment Share on other sites More sharing options...
Guest indoshare Posted March 24, 2011 Report Share Posted March 24, 2011 Hi Soudfx, Thanks for the info. What will be the winners in this strategy? would you explain? Is it working? plz Quote Link to comment Share on other sites More sharing options...
soundfx Posted March 24, 2011 Report Share Posted March 24, 2011 askalas, Google "The 9 Strength-Weakness Correlation positions" and you'll find the original on FF. You're exactly right about the triangular relationship. However, if you can see that GBPUSD and USDCHF are strongly trending up - then rather than buying either of those pairs you're better off buying GBPCHF because it will move further. There are no 100% solutions in trading. The edge that you get from trading GBPCHF in this case rather than the other two is that you get more pips quicker. How to decide whether the current trend is going to continue or not will rely on your normal trending indicators and strong support/resistance which is near and could cause the trend to reverse. Quote Link to comment Share on other sites More sharing options...
soundfx Posted March 24, 2011 Report Share Posted March 24, 2011 Hi indoshare, I'm not personally trading this strategy, though I may well give it a whirl soon. The success rate will depend on how well you are able to trade with trends which is another topic altogether ;) Quote Link to comment Share on other sites More sharing options...
askalas Posted March 24, 2011 Report Share Posted March 24, 2011 Thanks for the Google hint. I'll definitely have a look. And I think we are in complete agreement about how this can and can not be used as an edge. Quote Link to comment Share on other sites More sharing options...
termar Posted June 4, 2011 Report Share Posted June 4, 2011 Gbp/usd lags eur/usd positive correlation eur/usd lags usd/chf negative correlation aud/usd lags nzd/usd positive correlation eur/jpy lags usd/jpy positive correlation gbp/jpy lags usd/jpy positive correlation usd/cad lags aud/usd negative correlation usd/cad lags nzd/usd negative correlation Quote Link to comment Share on other sites More sharing options...
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