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Correlation

Gold down as risk on prevailsGold reached an all-time high earlier this week as it cleared the $1,750 level. It was able to reach bids at $1,765 before the US trading station started for the week. However, this rally was not sustainable as Risk on prevailed as Moderna reported positive data on early-stage coronavirus vaccine trial. Gold retracted back down to $1,725 today as Risk on sentiment prevails in the market, most notably in the oil market. Both WTI and Brent Crude reach highs since the start of the coronavirus breaching $34 and $37, respectively, as demand for oil slowly picks up around the world. Both commodities have been susceptible to the Risk on / Risk off a dynamic that has been playing out in the markets recently. The SP500 has been stuck in a consolidation zone since the end of April, with Investors / Traders gripping onto any good news with regards to any advancements to Coronavirus vaccines. Gold has been experiencing similar consolidation patterns as market sentiment shows genuine uncertainty with the future of the economy and global trade. This creates strong support and resistance lines within the consolidation zones that traders may trade with relative reliability. A breach of these supports and resistance may show strong positive/negative news with regards to Coronavirus vaccines. On quieter news days, traders may use these support and resistance lines for hourly and 4 hourly reversals. However, fundamentally we may see a retest of the $1,750 level again as Tensions between the United States and Australia towards China increase. Furthermore, the possibility of a second wave is still not out of the question, and many more disappointing results with regards to Coronavirus trials are highly likely. However, CEO Pascal Soriot of AstraZeneca, a pharmaceutical company, stated that they are confident that there is a good reason for vaccine trials to work. Are you bullish on Gold?
OANDA:XAUUSD
by BlackBull_Markets
TradingView Comparing Mastery TutorialAs a trader, being able to effeciently compare the performance of multiple securities is an important skill. In this TradingView tutorial I will compare a stock with its main index to find out about its correlation. You will learn: • How to compare multiple charts using TradingView • How to analyze and draw conclusions about the comparison of assets • A neat hack how to turn your compare symbol on/off using a keyboard shortcut Check out the video tutorial on YT: youtu.be
NASDAQ:AAPLEducation
by colicoid
2
DXY long - Supply Demand - h4 - UPDATEHello Traders! Quick Update on the DXY. Price pushed down a little bit on the h4 Supply Zone before. Check out the last DXY Analysis. It was possible to grab some pips therefore on the GBPUSD because in that moment GBPUSD went up. Now DXY broke the Supply Zone and it formed a Demand Zone. We can expect it to go up to the Supply Zone. So keep an eye on EURUSD, GBPUSD for the correlation. What can we expect: A push to the Supply Zone and afterwards a drop. If DXY will drop we can expect EURUSD, GBPUSD to go up. That was my Idea and I hope you liked it. Please leave a LIKE if you like the content. In the comment section you can share your view and ask questions. Thank you and we will see next time - Darius.
TVC:DXYLong
by DariusFxTrading
Directional Correlation with Traditional Markets + Manipulation?I am happy to see Bitcoin look bullish. Although a little disappointed to take some losses trying to catch flying knives. What bothers me about Bitcoin is the correlation with traditional markets. To trade this market, it seems like it would be better to trade Bitcoin based off the S&P chart. I feel like there is something wrong with this constant flow of large orders during this move. Some of the weird behavior I noticed during this entire run. There is a constant flow of 100-250k orders since this move started. The orders are triggered from Bitmix and Binance, then the other exchanges follow. I am seeing several of these orders every second each directional movement on S&P. When S&P cools down, the constant orders stop. But once S&P starts moving again, the orders start up again. Its as if there is some kind of F%#&ed up bot triggering large orders based on traditional market movements. There were a few reaction/liquid zones I marked as potential "Short" entries and none of them caused much resistance to this Bitcoin move. Its as if Arthur Hayes & CZ are doing some sort of tag team manipulation to increase the value of Bitcoin. And funny enough, this is the most recent tweet from Arthur Hayes, "This is what happens with #bitcoin teams up with stonks. Thank you Chairman Powell. You keep hope alive!" At one point or another, it seems logical for a significant pullback. But as long as S&P continues to rise and have the Fed backing the US markets as a whole, I will just take longs. Thanks for taking the time to read this idea. If you found it interesting, please support my efforts by leaving your feedback or questions below and upvote this chart. Cheers! These ideas are not financial advice.
BITSTAMP:BTCUSDLong
by AfterlifeTrading
5
Multi timeframe analysis: S&P Kiss of Death leads to BTC crash? S&P500 is forming the so called Kiss of death that is a strongly bearish signal. We saw that in the last years BTC and the major american indexes showed some correlation. Bitcoin is approaching a really strong resistance area and in my opinion it will be bounced back and in this video I will show the Short position I will be taking with a 2.6 R/R. Enjoy the view and let me know what you think. Comment&share here your visions and ideas. Leave a like to support my work.
BITSTAMP:BTCUSDShort
by MikeZillo
13
Bitcoin monthly price chart compare correation with oil and DJIBITSTAMP:BTCUSD Bitcoin has never been correlated to nothing BTCUSD, 1M, price chart CC, USOIL, 20 CC, UKOIL, 20 CC, DJI, 20 When CC reaches 1, there is a perfect correlation. When CC reaches -1, there is a perfect negative correlation. When CC = 0, there is no correlation at all. Bitcoin has never been correlated perfectly, or perfectly negative with crude oil, bren oil nor Dow Jones. Bitcoin is doing is own path, despite the dreams of the hodlers, mooners and big brown bears. This tutorial is dedicated to Tradingview "experts".
BITSTAMP:BTCUSDEducation
by Nugacity_Fracedinous
BITCOIN & SP500 | THE SIMILARITY IS PRECEDENTED | NOT A HEDGE.No unnecessary words needed. The chart speaks volumes. Bitcoin has never experienced a recession let alone a pandemic. Bitcoin will follow and mimic the global economy so long as economic implications exist. Main indicator for investing in Bitcoin should be the SP500, or any other equity index. This isn't a bull market. This is a bull trap correction. VERDICT: Bitcoin is not a hedge and will follow the broader markets until this recession/pandemic is over. Just ask yourself... why would bitcoin act differently?
COINBASE:BTCUSDShort
by JayanVarsani
5
BTC has one last price crash before price stabilizationIt's no surprise that BTC trails SPX performance. If the SPX takes a beating, BTC takes a beating. There has been a historical correlation between the two for some time now. That begs the question: are we ever going to see a divergence between BTC and SPX, and if so, why would it happen? Taking a look at my chart, I performed a regression analysis on BTC prices from late 2017. Current regression analysis shows a current trend price of 9111, with SD of +1 and -1 encapsulating most historical price movements. At current, BTC is well below the 9111 trend price. The reason is as stated above - it is treated as an asset correlated with S&P prices. Running a regression on BTC prices against the SPX gives me an r value of .43, which indicates a fairly strong correlation. This means most BTC retail investors do not view BTC as a hedge against the market, but rather as a further indicator of the market; they view BTC prices as relative to the strength of the equities market. This view couldn't be further from the truth - BTC should gain value if every other market declines since it's meant to represent a free-standing 'currency.' With that in mind, for those who think that the equities markets have yet to bottom-out, BTC also has yet to bottom-out. I do not believe that equities will remain at current valuations. Prices will continue their descent, and as retail investors cash out of equities, they will cash out of BTC, presenting BTC traders with a prime opportunity of entry. I believe it'll go as low as 4800 before it begins trending back up 9000 and beyond. To further evidence the weakness in the current bull trend, I've shown the RSI and DMI as well as 30 vs 13 MDA. RSI is hovering around centre while ADX in DMI shows weak momentum. BTC investors are clueless about the strength of the current market. If the market was strong, they'd have no problem keeping their position. If the market is weak, they want to believe it's strong so they end up unsure - clueless. SPX is set for another price crash, and so is BTC. I'd market a good BTC entry point at 5000.
BITSTAMP:BTCUSDLong
by formalrisk
12
BTC | S&P 500 - Slightly pumped on initial jobless claimsRed line is futures on S&P 500. CC indicator below is correlation between XBTUSD and S&P 500 on 15m time frame. Initial jobless claims was released, and rose 4.43 million last week, total is more than 26 million since the coronavirus outbreak started. S&P 500 slightly pumped as expected (as in previous times) and trying to rose higher, as well as bitcoin. Won't be long here ('coz we're at resistance), awaiting $7250-7300 for shorts. Hit the "LIKE" button and follow to support, thank you. Information is just for educational purposes, never financial advice. Always do your own research.
BITMEX:BTCUSD.P
by Bitduke
DXY short - Supply Demand - h4, h1Hello Traders! On DXY I could determine a Trend Line and Support Resistance. Currently DXY is dropping. I expect it drop at least to the h1 Demand Zone. Which is the blue Zone on the chart. What can we expect: If we are at the Demand Zone we can expect the price to go up. Then we will have the opportunity to short at the Supply Zone. That was my Idea and I hope you liked it. Please leave a LIKE if you like the content. In the comment section you can share your view and ask questions. Thank you and we will see next time - Darius.
TVC:DXYShort
by DariusFxTrading
2