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Correlation

Correlation Between BTC and NDXTNumerous podcasts and other news sources suggest that there exists a strong positive correlation between BTC price and the price of tech stocks. To test this notion, I plotted the BTC closing price and the NASDAQ 100 Technology Sector (NDXT) closing price on the daily time frame. Based on visual inspection of the upper panel of the chart, there are time periods during which there exists a strong positive correlation, time periods during there exists little to no relationship, and time period during which there exists a strong negative correlation. Given in the lower panel is the Pearson correlation coefficient value over time (red, white, and red solid line), the 95% confidence interval for the correlation coefficient (boundaries of the confidence interval is given by the solid cyan lines), the lower limit of the correlation coefficient (lower limit = -1.0, white dotted line), upper limit for the correlation coefficient (upper limit = +1.0, white dotted line), and probability value (P value, yellow histogram) for the correlation coefficient. Note that the correlation coefficient is considered statistically significant (i.e., highly unlikely to be due to chance) when the P value is less than 0.05. When the correlation coefficient line is green, there is a statistically significant positive correlation between the BTC price and the NDXT price. When the correlation coefficient line is red, there is a statistically significant negative correlation between the BTC price and the NDXT price. When the correlation coefficient is white, there is no meaningful relationship between the BTC price and the NDXT price. An important caveat to note: Each Pearson’s correlation coefficient is calculated on 20 days of price data. This is not financial advice. I am not your financial advisor. This is my opinion.
BINANCE:BTCUSD
by Eightchains
2
USDJPY Could Retest The Highs, While US Bonds Are DownHello traders! Today we want to share an intraday update for USDJPY pair in which we see nice and clean bullish impulse in progress, ideally back to highs for wave 5 that can retest the highs and 125 - 126 area. The main reason why USDJPY may stay up is still an unfinished five-wave decline on 10Y US Treasury Notes. As you can see, there's a negative correlation, so if bonds are still pointing lower for wave (5), then USDJPY could easily stay up, while the price is above 123.05 invalidation level. Trade well! If you like what we do, then please like and share our idea. Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
Long
by ew-forecast
1
How To Invest In Bitcoin & Ethereum Using S&P500 IndexIn this video, I explain how Ethereum and Bitcoin have been trading in tight correlation to the U.S S&P500 stock market Index. I will show you how to use historical Volatility, to know how much the two cryptocurrencies fluctuate on average per month, alongside price swings in the S&P500. Equipped this this knowledge, you will be able to see when the S&P500 pulls back within its long-term bullish trend, this is the time to buy Ethereum and Bitcoin. Its been well documented in the media about this correlation, but let me show you how to make money from it.
COINBASE:ETHUSDLong
by KayansMarkets
1
US30 Daily Price was previously in a rising expanding channel, then a breakout to the downside occur, & current market structure is a downtrend where price is now forming lower lows & highs. Price has now made a new lower high, making a retest of the broken channel. This zone also aligns perfectly with the 50% fibonacci retracement & a strong zone of previous support now new resistance. Price has been stalling at this region all week now, & today a Doji indecision candlestick has formed. I am now anticipating for price to remain below this supply region, & form a new potential lower low towards a strong area of daily demand below.
UShort
by Profound_Ambition
NAS100 H1Price has previously created a rising wedge pattern, & has broken it to the downside after failing multiple times to break above key level resistance, which aligns with the higher timeframe descending trend line which was rejected for a "3rd time today. Price also has formed a head on shoulders formation on the lower timeframe & has made a successful break & retest of the neckline. I am watching the intraday supply zone here for price to print a fresh lower high, where then on the lower timeframe I will be anticipating for price to make a lower low towards 4 Hour support below.
FX:NAS100Short
by Profound_Ambition
1
Stocks Will Stabilize When Aussie Finds The SupportHello traders and investors! Today we will talk about stocks and Aussie (AUDUSD) pair regarding risk-on/risk-off sentiment, so if you are wondering when stocks will be back to bullish mode, then keep an eye on Aussie. As you can see on the left correlation chart between SP500 and AUDUSD pair, always when Aussie finds the support, we see SP500 stabilization. Well, if we take a look on the right Aussie chart from Elliott Wave perspective, we can clearly see a corrective movement, ideally a complex (W)-(X)-(Y) decline. We are already tracking final wave (Y), but it has to be finished in three legs A-B-C and as you can see, wave C is still missing. So, if we are on the right path, then stocks might not be ready for a bull-run yet, until Aussie fully completes its corrective decline, where final leg may also occur as a spike down like back in March 2020 and January 2019. Trade well! If you like what we do, then please like and share our idea. Disclosure: Please be informed that information we provide is NOT a trading recommendation or investment advice. All of our work is for educational purposes only.
by ew-forecast
1
Mon 14th Feb 2022 Daily Forex Charts : 3x New Trade SetupsGood morning fellow traders. On my Daily Forex charts using the High Probability & Divergence trading methods from my books, I have identified 3x new trade setups this morning. As usual, you can read my notes on the chart for my thoughts on these setups. The trades being a EUR/CHF Sell, EUR/JPY Sell & EUR/USD Sell. Watch the overall risk due to the high correlation between these trades, as all involve the EUR. Enjoy the day all. Cheers. Jim
Short
by JAGfx
2
CPR monthly: every month we are getting crushed, but why today? December, January and February: 3 months in a row bitcoin is getting hitting the pivots from below and making a new lower low. How long can this go without ANY decent relief rally. Today's Paypal and Meta showed horrible after hour moves, over 20% down. This should drag the NASDAQ down too. And we know what this means: BTC will move bearish or sideways base case scenario for the day. Let's keep an eye on that 35.2K and let's see if it holds as that would prove the needed strength to make ANY upside move in the next upcoming days.
INDEX:BTCUSD
by TheTradingParrot
MicroStrategy testing FibonacciWe can see a high correlation between the company and BTC since the pandemic. Looking at the monthly chart, the fact is that the price is now in an important Fibonacci region at 50%. On the 1-hour chart, on the ADX indicator, we can see a decrease in the selling force (red arrows), and an increase in the buying force (green arrows), forming a kind of symmetrical triangle, signaling a temporary indefiniteness. I'm waiting in the cabin to see what happens.
NASDAQ:MSTR
by andre_007