Hi,
Can anyone help me outside the dollars pairs is there any pairs that should not be traded in the same direction i.e I know it doesn`t make a lot of sense having a long position on Gbp/Usd and Usd/Jpy most of the time and Eur/Usd and Usd/Chf practically move identically in the opposite direction.
Any help would be great.
Thanks
Take a look at this webpage.
It shows a table of the correlated & non-correlated pairs,
you can also see it in heatmap format as well.
Nice comparison chart, thanks. Wish they also had the g-y.
Thanks Daydreamer, very good info on that website.
correlation indicators can be found here:
This is a very important subject. Aside from what I am about to say, you should do your own in depth research on this subject.
I cannot imagine trading without doing a complete intermarket analysis first. I spend at least an hour on this before placing my first trades for any day. I have an entire screen dedicated to other markets outside FX.
There are brokers out there, who will allow you to open a free demo account for life on Mt4 which shows gold, oil, s&P, dow, S&P futures, the german DAX and much more, however those are the main ones I watch.
If your trading the yens, other than watching the stock markets a good understanding of 10 yr T-notes will benefit you as well. Stocks down, the yen increases in value (Short yen pairs) even the nikkei, 10YT up, the yen increases in value (Short yen pairs).
I mostly watch Gold and Oil for the majors, these two commodities can and definately do move the US dollar. If Im short the dollar and I see gold or oil completely tank, im out.
Can you recommend a broker that lets you keep a permenant free demo account? I’ve had many free demo accounts but they only last a month with my broker.
PS - I’ve been lurking for a few months a I’ve read a lot of your posts. Thanks for all of your input. I’ve learned a lot from your posts.
Oanda offers a demo account with no expiration - no Metrader, though. For an MT4 demo without expiration, try strategybuilderfx.