Using Correlation to determine entry
Eur and Aud are both strong currencies but because they are both strong we are looking for a huge move to separate them. Currencies do not like to share the same level of strength, one must be the strongest. This is a powerful trade because it takes into account correlation, strenght divergance, and support and resistance. Although i am entering for a 1:2 R:R because this is a trend following setup we can set it to be a R:R of 1:5 .
Note
Because this area is so small, we do not need to wait for a price action confirmation to enter the trade.Trade closed: stop reached
Note
Looks like a baxkside trade is being set up. trend has changed to long.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.