Hello @ria_rose, hope you are doing well.
I agree with @SrAaron. I need to know more about your strategy.
I read this but wasn’t very informative in my opinion.
By the way, I’d like some more information to see in which specific direction you need guidance.
I’m not saying or pretending that I’m a super guru or I have the holy grail, but I can assure you using ICT concepts I found consistency and profitability.
So please, share more info with us
Last but not least regarding the start of the post
Do you know/understand that the price is delivered in all pairs via an algorithm from three companies worldwide using the liquidity of the Central Banks?
More specifically check these two PDFs:
This is from SNB
and this is from DTCC
This is for Algos.
Let’s go now to the pairs, you have chosen the most correlated pairs.
What I mean by that, like the AUD/USD, EUR/USD, AUD/NZD etc. there is also a chart for the Futures of each currency.
How you can find them?
Simply by typing 6A1! on the search on Tradingview
A stands for Australian Dollar, B for British Pound, C for Canadian Dollar and I think you got the idea.
Let’s see now AUD Futures and NZD Futures:
AUD:
NZD:
If you put the charts next to each other you will notice that these two pairs are moving almost the same.
So what does that mean for AUD/NZD? Mostly consolidation.
So the guys were suggesting AUD/NZD to avoid correlation with other pairs, yes they nailed it with that but you are stuck now between one pair with the two most correlated currencies.
Another example. Check EUR Futures, and GBP Futures, and then check EUR/GBP
Anyway, I’ll close this message by saying that.
Correlation is not bad if you know your model and what you’re doing.
By saying that I mean if you are watching 2 positively correlated pairs such as EUR/JPY + GBP/JPY
or EUR/USD + GBP/USD or pick some other by yourself, in most cases the pairs are going to move in the same direction, but in one of these 2 pairs, you will not have the pullback to open the position.
One will kick like a donkey, and the other will take time to move. This is where you are looking to buy/sell in positively correlated pairs. Negatively correlated pairs are a bit tricky so for now I’ll not suggest it.
I hope this post helps you to widen your vision.
Be safe, and good trading