Currency Correlations

Trading Discussion
1

How do you guys work out Currency Correlations?

2

What do you mean specifically?
Are you asking do most traders check on correlations before they take a position?

Even if a pair is correlated 70% of the time, there are periods when that relationship breaks down.
Correlations can never be the sole reason for taking a position in the market.

Jake

3

I guess what I am asking is do traders check the correlations before taking a position?

and

how do you check the correlation between currencies is it a plugin into mt4? I dont use mt4 any idea of how to check the correlations without having to do it manually?

4

See if this helps you Using Currency Correlations To Your Advantage

Gp

5

Currency correlation table - All I did was a google search.

Most traders a few months into the game will know the correlations off the top of their head for the pairs they trade. I check them about 1-2x month, and keep the knowledge of the relationship on the back burner- never using it solely to make a trading decision.

Knowing the correlation is important, because it helps avoid scenarios like (the most commonly used), going Long EURUSD and Short USDCHF- it’s basically the same trade and you’re potentially doubling your risk / reward.

Jake

6

cheers for the links I will have a look at the websites in more detail…

7

Glad to help.
To me, a more important topic to understand is Intermarket relationships.
Search that out on the web…will open your eyes to a whole 'nother level of trading…

8

This is one that I like to use, as it presents the correlations GRAPHICALLY

Forex Correlation | Currency Correlation Chart | OANDA fxTrade Europe

Cheers

ALSO… HAVE YOU TRIED PREVIOUS THREADS?

Here, I have done the work for you… READ THESE:

  1. 301 Moved Permanently ;

  2. 301 Moved Permanently ;

  3. 301 Moved Permanently ;

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I COULD GO ON !!!

REMEMBER: ALWAYS DO A SEARCH OF PREVIOUS THREADS!!!

Happy trading.