Get started

Correlation

Gold and the Dollar are not friendsGold is really about the US Dollar strength. I've shown the inverse correlation in other charts before, but not on this 15 min time frame. The relationship is startling. So - if you believe the dollar is going to go significantly north, there is hardly any point going long on Gold. If you believe that a Dollar Surprise is coming (see my post on that), then are you long on Gold? Think about it. Disclaimers : This is not advice or encouragement to trade securities on live accounts. Chart positions shown are not suggestions. No predictions and no guarantees supplied or implied. Heavy losses can be expected if trading live accounts. Any previous advantageous performance shown in other scenarios, is not indicative of future performance. If you make decisions based on opinion expressed here or on my profile and you lose your money, kindly sue yourself.
OANDA:XAUUSD
by Captain_Walker
The japan titans & worldwide investors have made up their mindAnother idea on the yen which is waking up from its slumber of uncertainty, its 3 years slumber 😴. Which allows me to activate my crystal ball & predict the future. Hey I even threw an indicator in here, some nobs like them, it pops out but maybe not everyone sees it, the yen is breaking with conviction for the first time since December 2016. If you don't get what this means just keep reading. Back in 2016 the stock market was stagnating, George Soros kept shorting it, many funds were shorting it, the JPY had a major decline after a choppy uptrend then some sideways, and after the big very visually noticeable Yen decline, the US stock market had this big big rally for all of 2017 that Trump kept throwing at everyone. This should clarify things, if it doesn't well contact me to get roasted for free 😀: If you zoom in in 2016 you even get the same shadow from all the useless parasites stat-arbing this BoJ next meeting 18 or 19 March, rate going to stay the same for sure, continuing to boost the economy, really boosting the Wall Street hedge fund industry economy. As a conclusion, perma-bears are going to get laughed at again on CNBC Squawk Alley and other intelligent programs. Poor Peter Schiff. Nouriel Roubini the great nobel prize is recommending to short since 700 points LOL it's going to 5k soon. The boy that cried wolf is coming soon, no one is going to listen to any warnings, they must be sick of uncertainty & fear and more convinced than ever.
by MrRenev
4
US 10Y 6%+ jump scared investors, triggering another selloffAfter pulling back from 1.56% and consolidating for two days this week, US 10Y yield started to moving again! From the daily chart, it's inevitable as the recent demand zone holds very well! What I'm expecting is the below two scenarios: 1. yield keeps going up and investors are scared to flee the stock market. Bull market ends! 2. yield keeps going up and investors are concerned first, but eventually shrug off the yield hike. Bull market continues! Personally, I prefer to the second one. By looking back and studying the history, bull market ended with fed rate hiking. US 10Y yield weigh on the market, but the decision maker is the target rate. So, my overall asset allocation strategy is buying the dip. There is warning for sure, but it's not over yet!
Editors' picks
TVC:US10YLong
by JICPT
46
From US10Y Yield to Tesla and JPMIn this video, I explained the logic of recent market move caused by US 10Y yield. Actually, what caused the volatility doesn't matter at all, the key is what you're going to do. Some highlights are as below: 1. Why JPM rallied in the recent month? 2. Concern of the US 10Y rally continue to weigh on stocks.. 3. Similar pattern between US 10Y and JPM 4. Valuation drove the buyers to cheap stocks. Enjoy your trade. Be careful if you're using leverage to trade stocks, like Tesla.
NASDAQ:TSLA
by JICPT
6
BEWARE OF POTENTIAL REVERSAL - OBSERVATION WEEK COMING - ZB-30MNThe T-Bond 30 Years ZB is falling when the S&P500 is rising, Shouldn't it be the opposite when the economy is not going well? Beware of the possible super return of trends that might come soon. What about the timing at the moment? We notice that at open or 2h after American open an acceleration of the price movement occurs. Also at London closing time. What about the forces? Forces are clearly dragging the prince down but no vision in where the price is going. What about correlations? Opposite correlation with S&P500, ES. Same direction with Gold, GC. The green vertical line is at the time in which tomorrow, Monday 21st, we probably should see some nice movements if the market price follow same pattern as during the week before. We will still observe during next week. To repeat again, beware of trend sudden reversal. Probably, you can use this chart in combination of your S&P500 trading session, going in opposite direction.
CBOT:ZB1!
by Diallo_Charts_Ideas
Is EUR/GBP indicating the S&P500 Crash ?The last test of the weekly trendline in EUR/GBP was the March 2020 Crash, thats when EUR/GBP spiked up 1200 pips within a few weeks. Now price is moving close to the Trendline again, could this be a indication for the S&P500 Crash, i think so. Those that follow my Charts know that im looking for a Market crash in the next few moths, it seems like This EUR/GBP trendline could be a Indication for it. This correlation can be seen in most EUR pairs, i also posted a important EUR/AUD chart about this a few days ago, all of them give the same indication, they could be Indicating the Market crash from the technical side. This proofed to be working in 2000 / 2008 and March 2020, will it work again? Lets see.
OANDA:SPX500USDShort
by Thomas93
8
AUD/USD headed to the down side AndrewTheSage reporting to you live. My charts are messy and colorful. I am not a financial advisor I use arrows and different types of fib levels to show what's going on.. I will not put up an essay. I feel if you can read a chart you can understand what's going on with price by showing you a visual effect. The Dollar is going up....notice as the dollar goes up notice the negative correlation it has on AUD/USD it's going down mirroring the opposite.
Short
by andrewthesage
US 10Y continue to weigh on stocksNeedless to say the importance of US 10Y treasury yield. It is used as a proxy for many financial matters. From the daily chart, I can clearly see that price has completed the pullback and is very likely to rise. It will weigh on the stock market at least for a short period of time. Given the OMO of Fed, I think the bull market is far from over. However, the recent drop, as well as the WSB, indicate the high volatility in the near future. It's been up for quite a long time. It's better to take a while before heading up again.
TVC:US10YLong
by JICPT
BTC and ETH Correlation from + to - ! Now What?Hello everyone, hope you are having a fantastic trading week! Bitcoin and Ethereum have been trading in Sync as shown by the blue projection, both making higher highs, and higher lows almost together. Lately, the positive correlation we used to see started to fade away! and in fact, ETH and BTC are now trading in the opposite direction. As you can clearly see, BTC is trading inside a descending channel while ETH is trading inside an ascending channel. What Next? Are we going to see the positive correlation back by Bitcoin trading higher from here to catch up with Ethereum? Is now Ethereum leading? I find the comparison very interesting. What do you think will happen?
COINBASE:ETHUSD
by TheSignalyst
109
AUDUSD Correcting. Uptrend still intact.#AUDUSD: (1D): Also here the USD is getting weaker, resulting in a clear uptrend, which is confirmed by the 200 EMA as well. After last complex consolidation, the chart has been overextending for quite some time, so consolidation was to be expected. (4H): On a shorter period indeed, we have a downtrend. We recently had a fakeout to the downside, when sellers tried to accelerate without result. (1H): Right now, we have a range which means indecision in the market. This also means that we could see a deeper correction, as well as a strong uptrendtrend rebound if broken to the upside. This aligns with gold analysis (AUD positively correlates with XAU).
Long
by Wikiwicks
2
XTZ correlation with LINK - still alive & beats buy-&hold nicelyPlenty of traders buy XTZ whenever LINK makes a big move in the hope that the same will hapen with Tezos. There has been a lot of discussion if this practice is a waste of time or has an acctual edge. I will share here an idea that is being developed for the past 3 months. The sample size is still low at 20 trades, 30 would be optimal, so this is in progress. WILL POST ALL POSITIONS BELOW The strategy: Toyed with plenty of indicators, support and resistances that affect LINK. However using them on a different asset produced quite some noise because of the lag that was acctualy needed in this correlation strategy. So in the end the winners were simple increases/decreases in the price and volume at which LINK was trading. Used many different increases/decreases tresholds to time positions. Small price increases like "up by 2% in the last day" were not productive. Secondly the need for a confirmation indicator to close positions became apparent as we were holding winning positions too shortly. A simple SMA, albait at length 60 SMA did the trick. The rules: Painfully simple rules is the way to go. This is all done on the 1H timeframe, although we look at the previous day price/volume movements too. So in our case we will: Open an XTZ position when: LINK/USDT price is up by 5% in last day Close the XTZ position when: LINK Total Volume is down by 4% in last day AND Price is below SMA (60) No Stop Loss or Take Profit Do not open a psoition if both the open and close rule are true at the same time (price is up, but volume is tanking) The results: In the last 3 months the strategy brought in +66% on spot. If you were just holding XTZ you'd have +39.5%, so a significant imrovement with a lot of potential on futures. We saw 20 trades in the 3 months, loosing 11 and winning 9. The wins are more sizable with the gains, so maintaining this rate would be ideal. Most positions are held for 2-3 days. The max drawdown in the entire period was 7.75% which is excellent. The optimization: It might be worth looking for a third close indicator as it still does not capture the peaks to perfection. In case anyone has an idea, please post it. The positions: 21/01/2021 00:00 25/01/2021 00:00 4 days OP 2.9099 CP 3.0431 +4.58% 18/01/2021 06:00 19/01/2021 19:00 2 days OP 2.9157 CP 2.9351 +0.665% 17/01/2021 19:00 18/01/2021 05:00 10 hours OP 2.8984 CP 2.8806 -0.614% 13/01/2021 14:00 17/01/2021 08:00 4 days OP 2.4038 CP 2.7634 +15% 12/01/2021 07:00 13/01/2021 00:00 17 hours OP 2.3687 CP 2.2979 -2.99% 09/01/2021 16:00 10/01/2021 19:00 1 day OP 2.6017 CP 2.547 -2.1% 09/01/2021 04:00 09/01/2021 05:00 1 hour OP 2.5415 CP 2.5249 -0.653% 03/01/2021 01:00 08/01/2021 01:00 5 days OP 1.9975 CP 2.4438 +22.3% 01/01/2021 13:00 02/01/2021 00:00 OP 2.0743 CP 2.0081 -3.19% 24/12/2020 23:00 31/12/2020 00:00 6 days OP 2.0752 CP 1.9896 -4.12% 16/12/2020 17:00 19/12/2020 00:00 2 days OP 2.3128 CP 2.3253 +0.54% 12/12/2020 12:00 16/12/2020 01:00 4 days OP 2.1392 CP 2.2155 +3.57% 09/12/2020 23:00 11/12/2020 00:00 1 day OP 2.1786 CP 2.1059 -3.34% 03/12/2020 04:00 03/12/2020 06:00 2 hours OP 2.4209 CP 2.38 -1.69% 27/11/2020 17:00 03/12/2020 00:00 5 days OP 2.2312 CP 2.3885 +7.05% 20/11/2020 09:00 26/11/2020 00:00 6 days OP 2.1004 CP 2.5969 +23.6% 16/11/2020 18:00 20/11/2020 00:00 3 days OP 2.0879 CP 2.0773 -0.508% 10/11/2020 10:00 12/11/2020 00:00 2 days OP 2.1627 CP 2.1244 -1.77% 05/11/2020 15:00 09/11/2020 03:00 4 days OP 1.9195 CP 2.0808 +8.4% 27/10/2020 17:00 29/10/2020 00:00 1 day OP 2.1036 CP 2.0003 -4.91% Happy to answer any questions!
by CleoFinance