With your Forex trading do you trade more than one currency pair at a time? How can you find out which currency pairs are correlating and which aren’t?
This might be useful to know. Have you ever looked at the EUR/USD with the chart for USD/CHF underneath?
Have you noticed that sometimes when the EUR is strenghtening against the USD then the USD is weakening against the CHF? Sometimes it’s uncanny how these two currency pairs move in the opposite direction, naturally when the USD gains or losses against the Euro zone.
Did you know that there is a website which can give you the exact correlation between these pairs and other commonly traded currencies?
It’s called Mataf.net – here’s the link to the page you need: www.mataf.net/en/tools/correlation
If the currency pair correlates to anyother pair the reading will be 80% or greater. So you need to look for a reading of more than 80% and as close to 100% as you can get. If you enter a position on a currency pair, then you could wait for a similar setup on its correlating pair to trade in the same direction.
If the reading is -80% then the currency pair will be trading in the opposite direction to your compared currency.
Hope that helps. Let me know how you get on!
To Your Success!