Hi everyone, please I need assistance on how to gain a proper understanding of the Forex correlation table. I am torn between withTF to use when checking the correlation table because of my top down analysis. I used the H4 to grasp the bigger picture and use the H1 to catch the moves, please your opinions are highly appreciated. Thank you.
Frankly speaking, I also face issues understanding correlation tables. I usually get in touch with my mentor to get it sorted for me.
Hey! Let me try to help you out. The very first thing you’ll notice in any forex correlation table is that there’s a guide that illustrates the correlation strength. You need to follow this guide as often as possible since it’s really helpful in measuring whether the two pairs are correlated or not. The next most important part is to select the currency pairs. Select the pairs you want to show up on the correlation table. The next step includes entering a correlation period. Say you enter 50 periods which is the default setting and also considered to be the most accurate so far, click on the submit button.
Scroll down and see the results. If the number is positive, it says that the currency pairs are positive, and if it’s negative, the pairs are negatively correlated. Remember, a strong correlation is above 80 and a weak one is below 60. I Hope it helped!