I was following the NZDUSD and NZDCHF markets, yesterday, when I noticed what seemed to be a sort of “Following” trend of one market - to an extent, and with some variation - seeming as though to “Follow” broad trends of the other. Not to indulge about chart making, perhaps such a relation could be illustrated across any single duration of corresponding trends in the respective currency pairs.
I believe I’ve seen something similar, but across a sort of “Inverse” relation in a correspondence beween the EURAUDi and NZDUSDi markets - as might seem illustrated with a strong trend in each, but with the trend going oppositely “up” in EURAUDi and correspondingly “Down” in NZDUSDi
Both of the following charts were created with the MetaTrader 4 platform.
First, there’s the EURADi market in a 5M view over yesterday’s market activity:
Secondly, NZDUSDi in a similar 5M view over a similar duration
Candidly, I’m certain that there may be a computational methodology developed for detecting such “Market mirror” trends, such that perhaps could serve to inform a manner of a market assessment? I’m afraid there are may not be many of any manner of an academic research project being funded directly about any concepts of market finance, though. In this instance, perhaps the pronounced trend in yesterday’s trading simply makes what may be an indicator of a “Market mirror” meta-trend more immediately apparent than in a “Smooth trading” duration?
Personally, in watching the EURAUDi market this morning, I believe a metaphor of European Football comes to mind. Far shoutout to Barca!
Of course, the “I” part of these currency pair symbols may be indicative of “Interbank” i.e ECN trading.
Ed. Note: Both of these charts are developed in using the MetaTrader 4 basic Heikin Ashi indicator, traced onto bar charts, with a corresponding volume indicator in the bottom off the frame. Candidly, it seems that there’s something of an academia available about Heikin Ashi charting, as may be located via a [I]Google Scholar[/I] search. I believe that it serves as a useful indicator, at least in the “Spinning top” motif being indicative of an “Indecisive” market, such as may then be close to entering a market reversal period if the market rate takes up a momentum with a slope topologically opposite its previous slope. There’s a short summary about the Heikin Ashi charting methodology, at stockcharts.com