Cross currency analysis - useful or no?
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  1. #1
    Join Date
    Sep 2015
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    Default Cross currency analysis - useful or no?

    Let's say I'm focusing on GBP/USD and am working on my TA. Would you say it's worth it to look at EUR/USD, USD/JPY while trying to predict price movements in GBP/USD?

    So what I'd be doing is looking for TA signals on the latter two charts (while movement in GBP/USD is stale) to try and predict what would be "unexplained" movements than had I looked at just the one chart. Is this worthwhile?

  2. #2
    100% yes.
    Go even further and look @

    Equities
    Debt instruments
    Indices
    Volatility

  3. #3
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    Sep 2015
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    Wow, that's a lot of windows open at once. Might need an extra monitor or two!

    Would looking at equities + debt instruments + indices be worth at 15 minute time frames? That's a lot of windows open - are enough traders really looking at all of these for one to have an effect on the other?

    Also, by volatility, you're just referring to the SD in prices in the relevant traded currencies right?

  4. #4
    Quote Originally Posted by ElonzIllesc View Post
    Wow, that's a lot of windows open at once. Might need an extra monitor or two!
    Don't necessarily need charts open - just a watchlist and a good memory as to where your key levels are in different markets.

    Quote Originally Posted by ElonzIllesc View Post
    Would looking at equities + debt instruments + indices be worth at 15 minute time frames?
    100% yes, if your strategy calls for you to be monitoring price action on that timeframe. Most professionals I've seen trade care less about timeframe, and more about what the market is doing. Order flow traders don't even use charts.

    Quote Originally Posted by ElonzIllesc View Post
    That's a lot of windows open - are enough traders really looking at all of these for one to have an effect on the other?
    100% yes.

    Quote Originally Posted by ElonzIllesc View Post
    Also, by volatility, you're just referring to the SD in prices in the relevant traded currencies right?
    No - real volatility. So, if you're watching the S&P 500, you're also watching the VIX. If you're watching WTI, you're also watching the OVX.

    The key is to find an edge, exploit it until everyone catches on, then get out before it's too late.
    Go on youtube and watch a documentary called "Floored - into the pits". It's about an hour and 20 min - and will give you some unique perspective on how the big fish used to trade.

  5. #5
    Join Date
    Oct 2010
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    Good stuff ForexUnlimited, great 2 posts.

    My idiot/scammer Forex mentor/guru/teacher got me to look into COT reports and commodities, but its wayyy tooo much for me right now. I really dont even need them, but I guess just for craps and laughs there may something of value there. Its just confusing for me.

    As for the thread, I actually use cross pairs. I mostly trade EURGBP, but use GBPUSD and USDX as a cross. They usually work perfectly, unless news is there, then it really doesnt matter most times, but for most of the time, it works absolutly wonderfully, and does keep you on the right side of the track. Here is a pic and set-up that I check before I make assumptions and put money on the table.

    this one is EURGBP/GBPUSD
    Name:  GrayHoundEGGU.jpg
Views: 338
Size:  24.3 KB
    This one is ERUGBP/GBPUSD/EURX/USDX
    Name:  OverlaychartMulti.jpg
Views: 325
Size:  22.8 KB

  6. #6
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    Oct 2010
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    The indicator is called " Overlaychart"

  7. #7
    Join Date
    Dec 2015
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    Quote Originally Posted by MoneyNVRSleeps View Post
    The indicator is called " Overlaychart"
    I am assuming this is a custom indicator?

  8. #8
    Join Date
    Oct 2010
    Posts
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    Quote Originally Posted by mlawson71 View Post
    I am assuming this is a custom indicator?
    Yes,

    Overlay Chart Indicator - MT4 Indicators (MQ4 & EX4) - Best-MetaTrader-Indicators.com

  9. #9
    You can’t rely on only currency correlation! But you may apply this knowledge for filtering your trading entry point! In addition, I use specific trading strategy in a particular trading pair! That’s way, I don’t count others pairs status here! Besides, in my live trading chart I use different type or trading pairs from Forex to CFDs and Commodities, so no issue with currency correlation!

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