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Correlation

US 10Y continue to weigh on stocksNeedless to say the importance of US 10Y treasury yield. It is used as a proxy for many financial matters. From the daily chart, I can clearly see that price has completed the pullback and is very likely to rise. It will weigh on the stock market at least for a short period of time. Given the OMO of Fed, I think the bull market is far from over. However, the recent drop, as well as the WSB, indicate the high volatility in the near future. It's been up for quite a long time. It's better to take a while before heading up again.
TVC:US10YLong
by JICPT
BTC and ETH Correlation from + to - ! Now What?Hello everyone, hope you are having a fantastic trading week! Bitcoin and Ethereum have been trading in Sync as shown by the blue projection, both making higher highs, and higher lows almost together. Lately, the positive correlation we used to see started to fade away! and in fact, ETH and BTC are now trading in the opposite direction. As you can clearly see, BTC is trading inside a descending channel while ETH is trading inside an ascending channel. What Next? Are we going to see the positive correlation back by Bitcoin trading higher from here to catch up with Ethereum? Is now Ethereum leading? I find the comparison very interesting. What do you think will happen?
COINBASE:ETHUSD
by TheSignalyst
109
AUDUSD Correcting. Uptrend still intact.#AUDUSD: (1D): Also here the USD is getting weaker, resulting in a clear uptrend, which is confirmed by the 200 EMA as well. After last complex consolidation, the chart has been overextending for quite some time, so consolidation was to be expected. (4H): On a shorter period indeed, we have a downtrend. We recently had a fakeout to the downside, when sellers tried to accelerate without result. (1H): Right now, we have a range which means indecision in the market. This also means that we could see a deeper correction, as well as a strong uptrendtrend rebound if broken to the upside. This aligns with gold analysis (AUD positively correlates with XAU).
Long
by Wikiwicks
2
XTZ correlation with LINK - still alive & beats buy-&hold nicelyPlenty of traders buy XTZ whenever LINK makes a big move in the hope that the same will hapen with Tezos. There has been a lot of discussion if this practice is a waste of time or has an acctual edge. I will share here an idea that is being developed for the past 3 months. The sample size is still low at 20 trades, 30 would be optimal, so this is in progress. WILL POST ALL POSITIONS BELOW The strategy: Toyed with plenty of indicators, support and resistances that affect LINK. However using them on a different asset produced quite some noise because of the lag that was acctualy needed in this correlation strategy. So in the end the winners were simple increases/decreases in the price and volume at which LINK was trading. Used many different increases/decreases tresholds to time positions. Small price increases like "up by 2% in the last day" were not productive. Secondly the need for a confirmation indicator to close positions became apparent as we were holding winning positions too shortly. A simple SMA, albait at length 60 SMA did the trick. The rules: Painfully simple rules is the way to go. This is all done on the 1H timeframe, although we look at the previous day price/volume movements too. So in our case we will: Open an XTZ position when: LINK/USDT price is up by 5% in last day Close the XTZ position when: LINK Total Volume is down by 4% in last day AND Price is below SMA (60) No Stop Loss or Take Profit Do not open a psoition if both the open and close rule are true at the same time (price is up, but volume is tanking) The results: In the last 3 months the strategy brought in +66% on spot. If you were just holding XTZ you'd have +39.5%, so a significant imrovement with a lot of potential on futures. We saw 20 trades in the 3 months, loosing 11 and winning 9. The wins are more sizable with the gains, so maintaining this rate would be ideal. Most positions are held for 2-3 days. The max drawdown in the entire period was 7.75% which is excellent. The optimization: It might be worth looking for a third close indicator as it still does not capture the peaks to perfection. In case anyone has an idea, please post it. The positions: 21/01/2021 00:00 25/01/2021 00:00 4 days OP 2.9099 CP 3.0431 +4.58% 18/01/2021 06:00 19/01/2021 19:00 2 days OP 2.9157 CP 2.9351 +0.665% 17/01/2021 19:00 18/01/2021 05:00 10 hours OP 2.8984 CP 2.8806 -0.614% 13/01/2021 14:00 17/01/2021 08:00 4 days OP 2.4038 CP 2.7634 +15% 12/01/2021 07:00 13/01/2021 00:00 17 hours OP 2.3687 CP 2.2979 -2.99% 09/01/2021 16:00 10/01/2021 19:00 1 day OP 2.6017 CP 2.547 -2.1% 09/01/2021 04:00 09/01/2021 05:00 1 hour OP 2.5415 CP 2.5249 -0.653% 03/01/2021 01:00 08/01/2021 01:00 5 days OP 1.9975 CP 2.4438 +22.3% 01/01/2021 13:00 02/01/2021 00:00 OP 2.0743 CP 2.0081 -3.19% 24/12/2020 23:00 31/12/2020 00:00 6 days OP 2.0752 CP 1.9896 -4.12% 16/12/2020 17:00 19/12/2020 00:00 2 days OP 2.3128 CP 2.3253 +0.54% 12/12/2020 12:00 16/12/2020 01:00 4 days OP 2.1392 CP 2.2155 +3.57% 09/12/2020 23:00 11/12/2020 00:00 1 day OP 2.1786 CP 2.1059 -3.34% 03/12/2020 04:00 03/12/2020 06:00 2 hours OP 2.4209 CP 2.38 -1.69% 27/11/2020 17:00 03/12/2020 00:00 5 days OP 2.2312 CP 2.3885 +7.05% 20/11/2020 09:00 26/11/2020 00:00 6 days OP 2.1004 CP 2.5969 +23.6% 16/11/2020 18:00 20/11/2020 00:00 3 days OP 2.0879 CP 2.0773 -0.508% 10/11/2020 10:00 12/11/2020 00:00 2 days OP 2.1627 CP 2.1244 -1.77% 05/11/2020 15:00 09/11/2020 03:00 4 days OP 1.9195 CP 2.0808 +8.4% 27/10/2020 17:00 29/10/2020 00:00 1 day OP 2.1036 CP 2.0003 -4.91% Happy to answer any questions!
by CleoFinance
LITECOIN - Reversal Soon!LITECOIN is overall bearish trading inside our two red trendlines forming a Wedge pattern. And the first major support that may hold it back is the blue zone and round number 100, so as LITECOIN approaches it, we will be looking for reversal buy setups. The upper red trendline is not valid yet (only connecting two swings) so we will be waiting for a third swing to form around it to consider it valid (projection in purple). In this case, the third swing would be considered our trigger swing. Trigger: Waiting for a momentum candle close above the gray area to buy. (after the swing high is formed as shown in purple) Until the buy is activated, LITECOIN would be overall bearish trading inside the red wedge pattern and can still dive inside the blue support before going up. And of course, as LITECOIN approaches our upper green supply zones, we will be looking for sell setups. As per my trading style: When our buy is activated, the stop loss goes below the last swing low, and I target double the stop loss size. Always follow your trading plan regarding entry, risk management, and trade management. Good luck! All Strategies Are Good; If Managed Properly! ~Rich
COINBASE:LTCUSDLong
by TheSignalyst
52
EURAUD: Bearish TheoryTwo global economic crises so close together in world history, what are the odds? In 2008, the USA stock market bottomed out and began it's recovery just as the EURAUD pair hit a top and sold off. This correlation to the SPX, from a global market view, is interesting because there is such a great shift from negative 80 to positive 80 in a 4 year span after the 2008 recovery. It will be interesting to learn how this trend plays out in the coming years. The correlation coefficient has been dropping as the prices are starting to diverge negatively again. If it's anything like last time, we could be starting a long-term bearish trend in the pair. Or, the positive correlation holds strong and leads the pair up during the recovery. Or, the least likely scenario, the correlation holds but the pair drops like last time and the SPX goes down with it. Check back in three years.
by The_Arena_Trader
1
SPX500 UP and USD down again? Hey tradomaniacs, for today I`m looking at the correlation of DXY (US-DOLLAR) and SPX500, which are both at points of potential trend-continuation. As mentioned on telegram we have seen a very bearish sentiment of retailers of majors against USD, which is for me a strong reason not to buy the US-Dollar as long there is no fundamental reason. As soon as SPX500 continues its trend we can expect the US-DOLLAR to move down aswell, which would give us a great chance to buy majors such as AUD/USD, NZD/USD, GBP/USD and EUR/USD against the retailers sentiment and with the banks. Still waiting for confirmation! LEAVE A LIKE AND A COMMENT - I appreciate every support! =) Peace and good trades Irasor Wanna see more? Don`t forget to follow me
OANDA:SPX500USD
by Trading2ez
3
BTC: Digital gold trades like goldThe correlation coefficient between gold futures and Bitcoin started out negative for a few years, but after Feb '14 they began to move together. BTC and gold have now been in a five year cycle where the correlation will jump to +72, then drop to a higher low, then up to +72 again, over and over. It seems reasonable that the correlation could soon become stronger than +72 at this rate. It adds validity to the "Bitcoin is digital gold" idea. They are both being traded in an increasingly similar way.
COMEX:GC1!
by The_Arena_Trader
SPX's Correlation with M2 since 1980.Definition Correlation Coefficient (CC) is used in statistics to measure the correlation between two sets of data. In the trading world, the data sets would be stocks, etf's or any other financial instrument. The correlation between two financial instruments, simply put, is the degree in which they are related. Correlation is based on a scale of 1 to -1. The closer the Correlation Coefficient is to 1, the higher their positive correlation. The instruments will move up and down together. The higher the Correlation efficient is to -1, the more they move in opposite directions. A value at 0 indicates that there is no correlation. ---------------------- M2 is a measure of the money supply that includes cash, checking deposits, and easily convertible near money. M2 is a broader measure of the money supply than M1, which just includes cash and checking deposits. M2 is closely watched as an indicator of money supply and future inflation, and as a target of central bank monetary policy. -------------------
SP:SPX
by samitrading
4
Did a bit of ETH to BTC conversion on the Run Up in ETH priceNoticing that the trend has started to reverse, not so sure about converting BTC back to ETH unless ETH corrects very hard...like below 1K again, which might be in the card over the weekend...Why the dump...don't care...probably has something to do with Real Interest Rates rising. Gold got clubbed like a baby seal early in European session, so I guess Gold is now a bit of a leading indicator for crypto...Interesting, will have to make use of this knowledge in the future if the correlation holds up.
Long
by JJMa
BTC, XLM and XRP correlation brokenIf you can hear me, great! If not.. I am highliting that there is a decent amount of correlation going on with XRP and XLM, in comparison with BTC. HOWEVER As of recent, the correlation seems to have swayed to negative correlation. Remember, one coin is based on decentralization, and the other/s are based on the polar opposite, on the side of banks... Also, I said that when BTC corrects to $12-20k, i imagine XRP and XLM will begin a bull run.
BITSTAMP:BTCUSDLong
by Divit_R
Time for DXY to swing up - BTC to correct down?The inverse correlation between USD currency index DXY and BTC is well known. Now DXY is kindly letting us know that it is going to turn its price action up, at least temporarily. There is a very distinct bullish divergence forming on RSI, the same way it formed in August. Then the price of DXY made three lower lows while RSI was moving up before the price started to make higher lows. Now DXY has made its first lower low of that kind. What is BTC going to do if DXY starts going up? It retraces. If things work out as they did in August and September this is how it could go: - DXY makes 1 or 2 more lower lows stopping at the strong support zone around 89 - BTC slows down its ascent and turns its nose down - DXY climbs up to the level of 91.5-92 - BTC retraces 20-25% (in September 21%) taking the price to 22,5-24k support zone - DXY continues its journey down - BTC continues its journey up This is just one plausible scenario. We all know things could go differently, so DYOR. Trade safe and take care. Cheers Whoop
TVC:DXY
by WhooperSwan
BITCOIN Down! RIPPLE Up! This Picture Says it All!Hello everyone, if you like the idea, do not forget to support with a like and follow. This XRP / BTC => RIPPLE / BITCOIN, shows the two most posted two instruments here on TradingView in the last 48 hours , in action and together! As you clearly see, XRP/BTC is sitting at its All-Time-Low (almost Zero) so the most probable movement from here is up. In order for it to move up, we need one of the three scenarios to happen: 1- RIPPLE UP, and BITCOIN DOWN (best case scenario) 2- RIPPLE UP, and BITCOIN UP but with Ripple moving up more aggressively. 3- RIPPLE DOWN, and BITCOIN DOWN but with Bitcoin moving down more aggressively. What do you think? which scenario is more probable?
Long
by TheSignalyst
22
SILVER waiting for a trigger to sellHello everyone, if you like the idea, do not forget to support with a like and follow. on DAILY: SILVER is sitting around strong resistance 27.00 in blue so we will be looking for sell setups on lower timeframes. on H1: SILVER formed a valid trendline in red so now we are waiting for our trigger to confirm the bearish movement. Trigger: Waiting for a momentum candle close below the gray area to sell. and until the sell is activated, this one would be overall bullish and can still dive inside the blue zone. As price approaches our lower green support, we will be looking for buy setups. Good luck!
OANDA:XAGUSDShort
by TheSignalyst
21
BTC and XLM longBitcoin held the VWAP line with avg to low volumes and seems that it's bouncing to keep going with the uptrend. XLM is a bit lagging behind and crossed below the VWAP with high volumes, if xlm will keep going down a very sweet spot for a long position is the yellow zone that represents Volume profile's POC of yesterday's session and the close of the VWAP. They are gonna behave as support and if bitcoin keep the uptrend, xlm will definitively recover and go up. Super tight stop loss around 0.13970 because is this line doesn't hold then it's gonna be a freefall. All this ONLY if bitcoin keeps staying above VWAP. If we see a break of vwap with big volumes, then forget about any long position since the market is gonna correct heavily.
Long
by rosnick
2
BITCOIN: What's driving it? Is 30,000 in sight?In this video I show my theory on what's probably happening with BTCUSD. It appears that Bitcoin is being used to hedge against the US Dollar crashing. $22,000 is certain in sight and who knows it could get to $30,000 sooner than anyone might imagine. I still think that BTC is too volatile for my liking and therefore I've stayed out. I've been happy to avoid FOMO. I've lost nothing. I think that many will profit from a possible further charge north. But there is also still a risk that it BTC could reverse significantly. Best wishes for the Christmas period 🎅and have a Happy Prosperous New Year. 🥂🎁
BITSTAMP:BTCUSDEducation
by Captain_Walker
29