GU short continuation Using CES to get in some trade yesterday pushing our accounts even further, we looking into market to form another 15mins break to downside having our demand broken and supply respected!
Habbyfx
EuroUsd Sell OpportunityThe pair is currently on a channel and it's expected to hit the next bottom as the top is at a psychological level of 1.900
UNDERSTAND CURRENCY CORRELATION Understanding price relationships between various currency pairs allows you to get a more in-depth look at how to develop high-probability Forex trading strategies. Awareness of currency correlation can help to reduce risk, improve hedging, and diversify trading instruments. In this article, we will introduce you to Forex trading using intermarket correlations.
Meaning of currency pairs correlation in Forex
Correlation is a statistical measure of the relationship between two trading assets. Currency correlation shows the extent to which two currency pairs have moved in the same, opposite, or completely random directions within a particular period.
Analysis of two asset relationships using past statistical data has predictive value. By utilising the correlation coefficient, we can understand the relationship between two values and help manage risk.
Impact of currency correlations on Forex trading
They can form a basis of a statistically high probability Forex trading strategy.
They can illustrate the amount of risk you are exposed to within your Forex trading account. For example, if you have bought several currency pairs with a strong positive correlation, then you are exposed to higher directional risk.
You can avoid positions that effectively cancel each other out. EUR/USD and USD/CHF have a powerful negative correlation. If you have a directional bias, buying both EUR/USD and USD/CHF will counteract the moves in each pair.
Understanding correlations can allow you to hedge or diversify your exposure to the Forex market.
If you have a directional bias for a given currency, you can spread your risk using two strongly positive correlated pairs, in terms of diversification.
If you are looking to hedge a position (holding it with low risk of losses) you can take a position in a negatively correlated pair. If you were to initiate a ‘long buy’ for EUR/USD, and it begins to move in an unfavourable direction, you can then hedge your position by purchasing a currency pair that has a negative correlation to EUR/USD, like USD/CHF.
Currency correlations change in Forex
Be aware that currency correlations are continually changing over time due to various economic and political factors. These often include diverging monetary policies, commodity prices, changes in central banks’ policies, and more. Given that strong correlations can change over time, it highlights the importance of staying up to date in shifting currency relationships. We recommend checking long-term correlations to acquire a more in-depth perspective.
All in all, currency correlations could be a powerful tool you can use to develop high-probability trading strategies. You'll also be aided in risk management, mainly if you track the correlation coefficients over daily, weekly, monthly and yearly timeframes.
Shift in the EURUSD market structure A sudden shift in the market, waiting for a confirmation to continue the up thrust movement
Shift in market trend US30Market breaks off previous supply leaving a demand or rather an "Order Block" that held on for the shift in market structure to the upside confirmation needed, i . e another supply to yet get taken out for the continuation of the uptrend
MONDAY PREPSUS 30 expected to bullish, repelling off my 4HR POI
Now targeting imbalance at the upside, before the continuation of the market downtrend, anticipate the RR caught along the line
Already gotten my POI on the 1M timeframe follow up to see the movements
BTCUSD BREAKDOWN. Sniper entry for BTCUSD ,Majorly based on trendline analysis with support and resistance. Give your opinion
GBPUSD REANALYZED [FAILED DEMAND]Last post did thorough search to figure out a demand that could hold, having market reacting off it with a change of character above, but didn't cross off it, now market playing off to take fill up an imbalance left out previously, expecting market to go bullish afterwards. But let's see how
market plays out...
GBPUSD long [REANALYZED]GBPUSD yes on a down trend though leaving out liquidity and some imbalance as well, reacting off my demand zone found from the previous playout last year reacting off it to expect a bullish movement to sweep out liquidity above
IMPULSIVE WAVE 3 INCOMING!!According to my analysis on the H1 TF based on Elliot wave theory a corrective wave 2 has been spotted and a strong impulsive wave 3 should follow.
Let anticipate!!
GBPJPY LEADING DIAGONALGBPJPY is about to fulfill the leading diagonal rule which indicate first impulsive move to the downside on completion of the wave pattern our bias becomes long as we should expect a retracement wave ABC to the upside.
GBPUSD #CESTRADINGMETHODExpectant of a retest on the demand zone to scale up a buy to the upside to mitigate the supply of the break of market structure, several pull backs but we stay patient!
audusdseen that audusd as been bears for the previous week,reached it lowest price since couple of month, now we would be looking at the long in my group
