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Corelation

BTC $38-$40k low before macro upsideSorry to break it to y'all, but the BTC chop isn't finished yet. I expect a drop to around the $40ks which coincides with the Nov 22 low from a momentum perspective, unlocking another 10 months of upside like we previously experienced. CAPITALCOM:US500 is the main cause of this, which will cause another capitulation event before assets break correlation and boom. Timeframe can be forecasted using the resistance fan lines. I am a MAXI so trust the analysis, I want $300k+ just as much as you all do. Kappa.
BITSTAMP:BTCUSDShort
by JamesSpindler
Analysis of Currency Correlations in Forex TradingAnalysis of Currency Correlations in Forex Trading Navigating the complex landscape of forex trading requires a nuanced understanding of currency correlations. This article discusses the various aspects of the concept, from its definition to practical applications in the world of forex trading. Understanding Forex Currency Correlation Acknowledging the correlation concept may help traders get a better understanding of forex market conditions and aid in the planning of their trades. Currency correlations refer to the statistical relationship between different currency pairs, revealing how they tend to move in relation to each other. This concept is grounded in the idea that the values of currencies can be influenced by common factors such as economic indicators, interest rates, and market sentiment. Historical and Dynamic Correlations Observing the historical and dynamic relation between forex pairs that correlate provides a nuanced perspective on the evolving nature of market relationships. Historical price data shows the patterns and trends over time, offering insights into how pairs have moved in relation to each other in various market conditions. On the other hand, dynamic correlations acknowledge the ever-changing nature of financial markets. Influencing Factors Economic indicators of a country, such as inflation rates and employment figures, serve as fundamental drivers influencing the strength or weakness of its currency. Also central to the landscape are interest rates, with decisions made by central banks impacting currency values significantly. Market sentiment also contributes to the ebb and flow of currency interrelations. Interpreting Currency Correlations The relationship between currency pairs can vary in terms of intensity and duration. Let’s explore how traders measure correlations and which aspects they need to consider. Identifying Strong and Weak Relationships The correlation coefficient is the technical indicator that quantifies the degree to which two currency pairs move in relation to each other. A reading close to +1 indicates a strong positive correlation, while a coefficient near -1 signifies a strong negative correlation. An indicator reading near 0 suggests a weak or non-existent correlation. Correlation Between Forex Pairs May Change Over Time Major economic shifts and events can alter the relationships between currency pairs. The usual negative correlation can transform into a positive one, showcasing how economic turbulence can reshape established relationships. For example, AUD/USD and GBP/USD pairs have a strong positive correlation on the daily chart, which becomes neutral on the weekly timeframe. If we consider a monthly period, the correlation will become positive again. Correlations can manifest differently over various timeframes. Short-term correlations may be influenced by daily economic releases or unexpected events, while long-term correlations may be shaped by broader economic trends, including adjustments in a country's interest rates, alterations in monetary policies, or a combination of economic and political events. Short-term correlations may guide intraday or swing trading, while long-term correlations can influence position trading and investment decisions. The suitability of timeframes is closely tied to the chosen forex correlation strategies. Tools and Resources for Currency Correlations Analysis In addition to the correlation coefficient, there may be custom indicators to calculate and display currency correlations. These indicators can be programmed to suit your specific needs and preferences. Charting platforms equipped with customisation features also enable the simultaneous visualisation of multiple pairs, aiding in the identification of patterns and trends. Forex correlation matrices, available on various trading platforms, offer a comprehensive overview of the interdependencies of currency pairs. Types of Currency Pair Correlation The relative movements of forex pairs can be discussed from two different perspectives. Below, we delve into that matter, offering some practical examples. Currency Correlations While analysing the interrelationship between currency pairs, traders distinguish between three types of correlation. Positive: EUR/USD and GBP/USD A positive relationship is when two currency pairs move in the same direction. Over a specific period, when the EUR/USD experiences an upward movement, the GBP/USD also tends to rise correspondingly. Negative: GBP/USD and USD/JPY Negative correlations indicate movement in opposite directions. For example, when the USD/JPY experiences an upward trend, the GBP/USD tends to exhibit a downward movement, and vice versa. Neutral: EUR/GBP and AUD/CAD This is the case when there is no systematic relation between the exchange rates of the two currencies. The chart below shows that the price movements of EUR/GBP and AUD/CAD currency pairs do not exhibit a consistent pattern of moving in the same or opposite directions. Curious about how other pairs move in relation to each other? Visit FXOpen and try out TickTrader’s free charting tools. Intermarket Correlations In addition to currency pairs, intermarket correlations explore the interconnected relationships between various financial assets. For instance, the relative price movements between currency pairs and commodities or equity markets can influence forex trading strategies. Traders always consider these broader market dynamics to make informed trading decisions. Risk Management By identifying pairs with negative correlations, traders can potentially offset losses in one position with gains in another through a good hedging strategy. Positive patterns, on the other hand, can help confirm trends and reinforce trading strategies. Incorporating correlations into risk management strategies may help traders assess the overall risk exposure of their portfolios more accurately. Challenges and Limitations One challenge lies in the dynamic nature of correlations, which can shift unpredictably in response to economic events or changing market sentiment. Over-reliance on historical data poses a risk, as past patterns may not necessarily repeat in the future. Additionally, currency pairs are influenced by various global markets, while liquidity issues in certain currency pairs may affect the reliability of the patterns identified, particularly in times of heightened market volatility. Takeaway Understanding currency correlations is one of the key components in designing forex strategies. While their analysis offers valuable insights, a broader approach that considers various other market factors is essential for effective performance in forex trading. Ready to try your forex strategies? You can open an FXOpen account today! This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Education
by FXOpen
2
#CORE/USDT#CORE The price is moving in a bearish channel on the 4-hour frame and is largely sticking to it The price rebounded well from the green support area at the 1.50 support level, which is a strong level We have a trend to hold above the Moving Average 100, which is strong support for the rise We have very strong oversold resistance on the RSI indicator to support the rise with an uptrend Entry price is 1.60 The first goal is 1.84 Second goal 2.10 Third goal 2.40
Long
by CryptoAnalystSignal
Is the rest of the market joining the rally?The weekly chart (on the bottom) shows that SPY and RSP were highly correlated until early March. After March, we have seen the two separate in YTD returns. The correlation coefficient confirms this break in trading. The breakdown in correlation between the RSP and SPY is most evident between May and June when RSP lost value and SPY gained value. In the last week, we have seen SPY clear August '22 high. For many, this confirms that a new bull market has begun. While the RSP is far from its August '22 high, we saw it break a short-term resistance level yesterday (6/13/23). The correlation coefficient is also rising back towards 1. It appears that RSP is beginning a new leg up. I believe a new leg up in the RSP confirms the Bull case for the SPY. With the Fed decision this week and both equities close to a support/resistance line, I am also watching for the invalidation of this breakout in the RSP and SPY. For me, that would be both equities closing below their near support/resistance lines.
AMEX:RSPLong
by Ronald_Ryninger
FOREX & COMMODITIES CORRELATIONHello everyone! Today we will discuss the correlation for some currencies and commodities. GOLD GROWTH Recently, gold has risen sharply. Not everyone knows why and what may happen next. But if you disassemble gold, then historically, it turned out that in difficult economic moments or in a crisis, dollars are exchanged for gold, since GOLD has historically been considered a rescue tool from inflation. As you know, inflation eats up the value of the dollar and gold is an excellent tool for saving money. According to the above, the DOLLAR and GOLD have an inverse correlation, that is, when the DOLLAR falls, GOLD rises and vice versa. In addition, gold can be an indicator of the future crisis and or acceleration of inflation. Maybe that's why GOLD is growing now? CANADIAN DOLLAR AND OIL Canada occupies one of the first places in the world in oil production. And, of course, oil plays an important role in the country's economy. As soon as oil prices rise, the CANADIAN DOLLAR becomes stronger. Conversely, the fall in the cost of oil has a bad effect on the currency. SWISS FRANC Switzerland is historically famous for its economy and its banks. Trillions of dollars are stored in Swiss bank accounts. We will not talk about how they get there, where and why, but the main thing is that everyone knows that many people keep money there. Switzerland is a time-tested country, people trust their country and consider it very reliable. Do not forget that 25% of Switzerland's reserves are secured by gold. The currency is very strongly linked to gold and therefore when gold falls, the currency falls too, and when gold grows, the currency grows. Everything is simple. There are many correlations of currencies with other assets in the world. There is also a correlation between currencies. An attentive trader will be able to identify a pattern and make money on it. Thanks! Traders, if you liked this idea or if you have your own opinion about it, write in the comments. I will be glad 👩‍💻
Education
by Lingrid
9
June Foretells Future Crypto RecoveryThe price action for June 2022 was marked by a drop in all Risk Assets (stocks and cryptocurrencies) from the first of the month followed by a recovery mid-June and now finally a retest of the June low by the end of the month. The relative recovery of the mid-June bullish Retracement indicates the strength of these risk assets and may foretell future recovery and/or potential downside should the June low be broken in the near future. Bitcoin BITFINEX:BTCUSD shown in this post recovered only 30% of the down trend during the pullback. Ethereum BITFINEX:ETHUSD recovered slightly more by 35% of the down trend: Meanwhile in stock world the S&P 500 represented by futures CME_MINI:ES1! recovered with more strength by 54%: The Nasdaq CME_MINI:NQ1! recovered 64%: What these different relative strength recoveries imply to me is that the stock market is showing more signs of recovery than the cryptocurrency sector in the near term. The implication to this current relativity is that the stock market may recover its losses faster than cryptocurrency. It also implies that cryptocurrency is weaker and breaking the June low in the near future could lead to even greater losses relative to stocks and past price action.
BITFINEX:BTCUSD
by norok
5
Xau/USD outlookHello everybody! What you are looking at is a daily and 1hr chart of xau/USD (gold). Price has been Bearish for a few days now but I don't think we are bullish just yet. My bias is still bullish on the dollar, based on analysis of DXY and with current world conditions. Looking for another run up into buy side liquidity, and then another shift to the downside to reach my target.. Just some of what I see in gold. This is not trade advice in any way shape or form. Bless you all, best of luck and happy trading.
OANDA:XAUUSD
by Mookie4293
1
FED Raises Fund Rate Today - So what Says Bitcoin (BTC)A lot of speculation and expectation around the FED raising the fund rate today and it's impact on Bitcoin's price. If you compare the fund rate and Bitcoin's price you notice there is no clear long-term correlation. I would aruge if anything then the more interesting comparison would be to compare Bitcoin (BTC) to the M2 money supply. Endless money creation correlates strongly with a rising Bitcoin price. While Bitcoin swings wildly the clear trend is up - just like the M2 money supply. Bitcoin clearly is a hedge against inflation until proven otherwise Bitcoins chart prices are pretty clear. -------------------------------------------------------------------------------------------------------- ** Please support this idea with your likes and comments, it is the best way to keep it relevant and support me. ** -------------------------------------------------------------------------------------------------------- !! Donations via TradingView coins also help me a great deal at posting more free trading content and signals here !!
BITFINEX:BTCUSDLong
by CarpeMomentum
2
GBPUSD is showing good signs for long opportunity!In the coming week I'm a bit confident with dxy+fibre+cable. Reason behind this confidence is the liquidity grab in GU and DXY from the previous month. Whenever this happens we expect a move to lower timeframe points on interests lie d1 or h4 or m15. We can split this one swing trade into different day trades. Waiting for the model daily and executing when all criteria is fulfilled brings another level of calmness and peace to the mind and trading. Comments will be appreciated. Thanks and have a good trading week ahead.
Long
by hamzatariq76512
Is Bitcion predicting the stock market corrections?Recently, Bitcoin has become more corelated with the stock market than ever. This makes sense, since more and more people know about it. But there are still noticible fluctuations here and there. So, I noticed that most of the time, when Bitcoin creates some significant local high, this also reflects to the stockmarket (usually done so on a high corelation). But the interesting thing is that when Bitcoin bottoms, the correction on the SPY is yet to arrive. Mark that after most local tops, the corelatoin diverges a lot because Bitcoin is able to react much faster. (it is traded 24/7) Not only is Bitcoin able to widthstand market corrections (except maybe some that are affected by global events), but it thrives in this environment. Will we see some heavy divergence this time? My guess that it will not be such great as in the past, but we could still see some big moves in the opposite dirrections soon. According to this data, Bitcoin should recover much quicker, while the stocks struggle or possibly consolidate for a while.
COINBASE:BTCUSD
by thomasula
2
SPX500 could MOVE UP!Hey tradomaniacs, SPX500 could move up 👉 If thats the case we might see some US-DOLLAR-WEAKNESS today and more risk-on. Good for our positions.🙏 Volatility is likely to continue in the market until the end of the quarter as we see a lot of re-balancing by institutions. For example: Pension funds have an overweight in equities but are forced to have a certain ratio of different assets. (E.G. Bonds to Stocks). Here some figures to show you how much capital different institutions have to distribute as announced: 1️⃣ Mutal -$107BN 2️⃣ Defined Pension -$110BN 3️⃣ Norges Bank -$65BN 4️⃣ GPIF -$34BN At the same time market makers who are forced to Hedge their positions (volume about $31 BN). LEAVE A LIKE AND A COMMENT - I appreciate every support! =) Peace and good trades Irasor Wanna see more? Don`t forget to follow me
OANDA:SPX500USDLong
by Trading2ez
3
PPIACO (Producer Price Index)– it's RSI & BITCOIN are CorrelatedI believe PPIACO (Producer Price Index)– it's RSI & BITCOIN are Correlated PPIACO (Producer Price Index) is related to inflation . Look at the points in witch its RSI or the direction starts to change for PPIACO. They correspond with bottom or tops or changes in direction for BTC . Fascinating and makes sense. Black line is BTCUSD Pink Line is PPIACO RSI is of PPIACO Look at cross over points in RSI of 70 and 30 Next time RSI crosses over 70 and then comes back below we will be back in downward trend.
F
by braincipher
1
DXY Short term UpdateWe are looking for a final push, however be wary that on the longer timeframe the picture is still pretty mixed, we can see dollar strength due to fundamental risk-off scenarios in the short term that coincides with DAX & S&P Sentiment and price action, however, a leg to the downside is still very much close. Trying to paint a little bit of perspective in a crazy environment. You can check my profile for the longer-term picture and relation with EU. Have a nice week!
TVC:DXYLong
by afcapitaltrading
1