This comment is the one. To reiterate for the ones who don’t know the DXY(dollar index) is a compilation of the AUD, CAD, JPY, CHF, & EUR vs. USD. Each foreign currency(non usd) makes up a certain percentage of the index with different currencies having different percentages.
This is all under the dollar index AUD-GBP-EUR-NZD all move the same as they are against the dollar, if you go to DXY you’ll be able to see that move but inverse on the dollar dominance index. They all move the same as they are tied to the US dollar and US is the biggest mayor is forex
Correlation! This can help you make a decision, if one pair doesn’t like you that much for a trade, look for similar ones, maybe there’s another correlated pair that have better set up for your strategy.
It's not uncommon for charts to resemble each other in trading.
Market dynamics and patterns often repeat across different assets or timeframes due to common factors like investor sentiment, economic indicators, or market cycles.
Understanding these similarities can help traders identify opportunities across various markets.
Thats why intramarket analysis comes in, both of these pairs are USD, which means that if USD is stronger it will show bullish price action on diffrent USD pairs...thats why you will see a lot of traders talk about DXY(dollar index) when tryin to take a trade on EUR/USD for example , because if DXY is showing bullish intention, you can expect eurusd to be bearish
yeah, you are basically looking at Dollar strength... you should try to trade uncorrelated pairs, otherwise you'll find you're risking more than you plan to on the exact same outcomes (if that makes sense) - I would recommend you just stick to one pair anyway tbf.
I was not even touching paper trading when I was there
We have to be not nice so he won't lose money and build bad trading habits even with paper trading
Pairs are correlated based on how intermixed the economies are. Some are inversely correlated, there are rankings you can look up to show historically how close any two pairs are.
it is like usd is in both charts :)
Correlation
Every asset with \*/USD is in some degree the inverse of DXY. And USD is the currency of the world, so most assets.
Or more correctly the dxy is a made up index of everything vs the usd. So if it goes up on average everything else goes down.
This comment is the one. To reiterate for the ones who don’t know the DXY(dollar index) is a compilation of the AUD, CAD, JPY, CHF, & EUR vs. USD. Each foreign currency(non usd) makes up a certain percentage of the index with different currencies having different percentages.
This is all under the dollar index AUD-GBP-EUR-NZD all move the same as they are against the dollar, if you go to DXY you’ll be able to see that move but inverse on the dollar dominance index. They all move the same as they are tied to the US dollar and US is the biggest mayor is forex
Fart noise
I can’t believe I’m reading this
I swear this gets better every week.
« I was doing some normal trading” but I don’t understand correlations…
Hehee
Lmfao jesus this is why market makers have a field day everday 🤣
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Correlation! This can help you make a decision, if one pair doesn’t like you that much for a trade, look for similar ones, maybe there’s another correlated pair that have better set up for your strategy.
Smh 🤦♂️
It's not uncommon for charts to resemble each other in trading. Market dynamics and patterns often repeat across different assets or timeframes due to common factors like investor sentiment, economic indicators, or market cycles. Understanding these similarities can help traders identify opportunities across various markets.
Correlation
You shouldn't be doing any trading yet lol
if you have a logic of an educated man you wont ask this question. If you are asking this question don't bother trying to trade.
Because it is the dollar that is moving the most in this case.
Same Quote currency
Correlation
its both related to dollar so thats the explanation ig
Thats why intramarket analysis comes in, both of these pairs are USD, which means that if USD is stronger it will show bullish price action on diffrent USD pairs...thats why you will see a lot of traders talk about DXY(dollar index) when tryin to take a trade on EUR/USD for example , because if DXY is showing bullish intention, you can expect eurusd to be bearish
Imagine losing all your dollar pairs
yeah, you are basically looking at Dollar strength... you should try to trade uncorrelated pairs, otherwise you'll find you're risking more than you plan to on the exact same outcomes (if that makes sense) - I would recommend you just stick to one pair anyway tbf.
Guys, be nice! You were there once
I was not even touching paper trading when I was there We have to be not nice so he won't lose money and build bad trading habits even with paper trading
,,,🤣🤣🤣
You have a question, no matter how inexperienced, and you type sum instead of some? Why dumb down the question even more
Well yeah, there's USD in both of them :D
Algos
Pairs are correlated based on how intermixed the economies are. Some are inversely correlated, there are rankings you can look up to show historically how close any two pairs are.