What Is Correlation in forex trading?

Trading Discussion
1

Correlation in forex trading is a controversial theory that every experienced trader talks about. Some traders argue that there is no correlation between currency pairs while some traders say there is. Which one is right?
A statistical measure referring to the extent of linear relationship between two or more variables, in other words, of the degree to which the movements of two currency pairs are related. For example, if two currency pairs have a high correlation, their prices tend to rise and fall in sync. Although the measure suggests some causal relationship between the variables, the relationships between pairs and the correlation values tend to change from time to time.

But I want to know more, so please experts.

2

Have you checked out this currency correlation table?

Are you currently using any tools/tables to use correlations when trading?

3

For me correlations are very useful and act as a confluence for me. For example the DXY vs EURUSD.

4

In a layman’s view,correlation is just similarities in movement of a given instrument.

Now correlation can be positive, negative or neutral and because of the constant change in correlation, pple get the idea there’s nothing like that but trust me, it exists and it’s very useful.

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