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Correlation

Correlation EURUSD VS. USDCHFHere is my two yestarday´s levels from my Members area. ( Both ended up in profit ) Let me explain my how correlation between EURUSD and USDCHF works and how you can look at the charts. EURUSD and USDCHF are negatively correlated (correlation almost -100%). If USDCHF falls, then EURUSD should rise. If EURUSD rises, USDCHF should fall. This means that in similar areas there will be similar levels for trade. HOW THIS CAN HELP ME IN TRADING? If you consider some price level for trade make sure that is visible on other pair too... If will be significant area for long on EURUSD, make sure that there is a significant area for short trade on USDCHF too! If there is, then you will be more likely to have a successful trade. Happy trading Dale
Education
by Trader_Dale
Correlation Coefficient + CCIPictured above is a graph of Royal Dutch Shell vs brent crude, the correlation coefficient between them, and the commodity channel index tracking the volume weighted moving average of Shell. I tested this indicator on a few energy stocks: RDS, MRO, BP and XOM. Negative correlation between brent crude and an energy stock coupled with an overbought CCI seems to give an indication of price reversal. Here we see two overbought CCI readings coupled with negative correlation, both followed by massive drops in the price of BCO and RDS. Likewise we see negative correlation coupled with upward CCI readings pointing to massive price rises in RDS. Seems to work on daily time frame as well but indicator length will need to be tweaked accordingly. Correlation coefficient going negative is an indication of pricing inefficiency and momentum potential, but does not give us an indication of price direction. The commodity channel index can give us a sense of where price momentum is pointed. Both put together give us a powerful indicator capable of foreshadowing both momentum and direction.
REducation
by Derivati_Capital
Average price of bitcoin against the American stock marketSince I'm lazy, here's what I said on twitter: "Due to the stock market opening lower than it closed yesterday, this chart that takes into account the average price of #bitcoin against the sum of $DJI $NDX and $SPX opened exactly at the 200 day moving average, rising as the day progresses... A $BTC target ~$13k based on this" I've been noticing clear inverse correlation with the American stock market and bitcoin(along with the inverse correlation with DXY). After realizing it was possible to form charts out of formulas using other charts as variables, I decided it would be very interesting to weight the American stock market against the average price of bitcoin across the 10 most significant exchanges according to me. Unfortunately for the no coiners, I've been anticipating a significant recession that adds fuel to the next bitcoin bull run(see related ideas).
BITFINEX:BTCUSDLong
by tomtourettes
1
The playI have this idea of that the marked points(horizontal lines) will be the key areas for determining the upcoming trend of bitcoins price movement because the areas collide as in support meets resistance and resistance meets support between GOLD & the indexes S&P 500 and NASDAQ 100 whom naturally have an inverse relationship. The reason for this thinking is because for a longer period of time i have paid attention to that when the indexes go up the market of cryptocurrency goes down and knowing that gold has a naturally inverse relationship as a form of hedge towards the traditional market i would assume identifying key points and finding a correlated area would be legitimate for making a speculative guess for the future price movement of the bitcoin. This also means that because bitcoin moves all the other currencies in its sphere being the most dominant one all my other assumptions will revolve around either the break of the resistance for indices RED & PURPLE or the support of gold against the indices marked YELLOW So if GOLD finds support i say there will be a reversal for bitcoins bear trend towards the bull sentiment and if Indices break the supply areas a continuation for bitcoins bear trend will emerge short to medium term. However if any of these situations are to be played out i am biased to that GOLD will be favored in its area because of the recent news revolving around the financial markets and break of chart patterns. Please do give me a like and or a follow as i will be updating these charts if you want to follow its development!
BITFINEX:BTCUSDLong
by C2222222222
EW ANALYSIS: Risk-Off Sentiment Could Continue; NIKKEI+USDJPYHello traders! Today we will talk about Risk-Off mode over NIKKEI225 and USDJPY, where we see a tight positive correlation! As you can see, the main driver for the USDJPY sell-off was NIKKEI225, which may continue later this week, since we have seen an impulsive five-wave decline. In EW theory, after every five waves, a three-wave pullback follows and we can already see an a-b-c correction in progress, where wave »c« is still missing, so be aware of a Monday rally towards projected resistance areas, from where we may see another sell-off in the stock market and consequently also in the USDJPY! That said, in the NIKKEI225 futures chart, we are tracking a three-wave a-b-c corection, where 22000 resistance area can be tested, before we may see a sell-off continuation! So, as long as it's trading below 22780 highs, we will remain bearish! If we respect correlations, then it's similar with USDJPY, in which we think that 113 area, specifically 113.25 – 113.35 resistance area can be retested before another sell-off, so while it's trading beneath 114 region, we remain in the bearish mode! Early Monday moves are usually fake, so if we get a Monday rally within projected wave »c«, then this would be a perfect three-wave corrective rise that can be easily covered in the next days, when we expect another sell-off! Trade well! Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
by ew-forecast
Correlations: US30/DE10/JP10 yr bonds with the S&P/DowThis was an experiment to find any relevant patterns or correlations between US Bonds/equities. Nasdaq was not included due to it's high %'s skewing the perspectives on the chart Green vertical lines were "buy signals", and the red lines were sells. The result is that there definitely is some correlation here with the "oversold"/overbought" position on US 30yr bonds and US equities. What I'm seeing is more often than not it is an accurate indicator for a trend reversal, and also that it is not time for a buy "long term" yet. That signal comes (more often than not) when the 30 yr bond price is overbought on a weekly timeframe. I'm expecting an equities bounce in the next few days, but I'll be setting my long term buy targets lower. S&P around 2200-2300 wouldn't surprise me before the end of 2019
OANDA:USB30YUSDShort
by teckno05
SPX500USD (H4)After price formed a double bottom at key level support, a strong bullish impulse took place breaking all barriers of the downtrend structure. Price closed this Friday with a bullish engulfing candlestick breaking above resistance along with the major descending trendline. Will be anticipating a slight pullback to retest broken resistance (61.8 fib) as new support for a further push to the upside. This pair is important to watch as it has a strong correlation to the forex market. When price pushes up, AUD & NZD gain strength. When price moves lower on the SPX, this causes fear in the market & people move their money to safe haven assets like the CHF & JPY.
OANDA:SPX500USD
by Profound_Ambition
BTC pumps with the markets!!While most say that BTC and the stock market have no connection at all, we have been shown over and over that there is something interesting there. We can see on this chart that both the strong downturn lower in both markets mirrored each other and today's rally in stocks was yet again mirrored in crypto markets. Whether basing trades off of the movements of one on the other isn't recommended, the correlation is there and it is something to keep an eye on. Cheers!
BITSTAMP:BTCUSD
by CM_Trades
Trading Entry and Exit ChecklistsSELF DEVELOPMENT/METHODOLOGY/PSYCHOLOGY Trading Entry and Exit checklists Over the past 18 years of trading, it has been a crucial step in my development to constantly critique myself and my trading strategy. I constantly monitor my performance on a daily, weekly,monthly,quartley and yearly timeframe. Listed below is a small simple example of some of the checklists that i have used in the past prior to entering and exiting a trade. Entry Rules 1. Is the stop loss placed past the strongest support or resistance line? 2. Am i following my trading rules? 3. The risk/reward is acceptable 4. Have i double checked my entry/stop loss and target position? 5. No news announcements that will affect my trade? 6. Bid/ask spread - Is it in normal range for this pair, this session, this time? 7. AM i risking more then my agreed 1%? 8. Correlation - AM i trading against myself with already open trading trades? Exit Rules 1. Has the market behaved as predicted? If so stay on track 2. Has the trade reached the support or resistance line? 3. Has the stop been placed too far away? or to close? 4. Am i exiting to early? 5. If unsure of trade exit immediately? 6. If i was impatient and entered trade exit immediately? 7. Is there an upcoming news event that will affect my trade? 8. Is the trade changing directions? 9. Don't take profits to early!! Are you exiting before your target line? How has yours differed? is it similar?
BITFINEX:BTCUSDEducation
by SMPTrader
GOLD USD/JPY: inverse correlation Thank you for your attention, and please share your views and comments. Any idea is a contribution for a better understanding of The Matrix. Please note that I am not a professional trader and these are my personal ideas only. ***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.*** Thank you for following and for sharing your ideas. Disclaimer: The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. Cozzamara is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.
TVC:GOLD
by cozzamara
[DXY] Correlation with other pairsHi guys ! This is an other simple chart to explain the correlation between DXY and other pairs. As you know, the best exemple is with EURUSD. When EURUSD goes up, DXY goes down, and when DXY goes up, EURUSD goes down. This is because in the DXY (Dollar Index), there is more than 50 % EURUSD. The U.S. Dollar Index is calculated with this formula: USDX = 50.14348112 × EURUSD ^(-0.576) × USDJPY ^(0.136) × GBPUSD ^(-0.119) × USDCAD ^(0.091) × USDSEK ^(0.042) × USDCHF ^(0.036) Thanks for your time guys !
TVC:DXYEducation
by AnthoXBT
1
My personalized bitcoin index (factoring in USDT fluctuations)It averages the price across 9 exchanges, while calculating the actual USD value of bitcoin in USDT markets by multiplying the respective exchange rates by the value of USDT according to Kraken. Here's the formula for the chart in case anyone wants to use it themselves: (COINBASE:BTCUSD+BITSTAMP:BTCUSD+GEMINI:BTCUSD+POLONIEX:BTCUSDT*KRAKEN:USDTUSD+BITFINEX:BTCUSD*KRAKEN:USDTUSD+BINANCE:BTCUSDT*KRAKEN:USDTUSD+BITTREX:BTCUSDT*KRAKEN:USDTUSD+OKCOIN:BTCUSD+HITBTC:BTCUSD)/9 See related ideas(or find me on twitter/facebook/steemit) for more reasons why I'm so bullish. The chart should pretty much speak for itself, breakout of a falling wedge...
COINBASE:BTCUSDLong
by tomtourettes
5