Anybody know how to correlate 2 pairs on same price chart?
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Thread: Anybody know how to correlate 2 pairs on same price chart?

  1. #1
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    Anybody know how to correlate 2 pairs on same price chart?

    Hi guys, i want to know that does anyone knows how to pull the prices of two or more currency pairs on the single price chart for the correlation purpose.for example EURUSD and USDCHF price on the same chart for the correlation.If anyone knows please explain me?

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    Trader Hukam's Avatar
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    Brother I personally do trade only in Euro/Usd pair so don't have much idea about that you are saying right that Euro/Usd and Usd/Chf is a very good example in front of us along with it you can try to do this type of trading in many other pairs also for this detail you have to search all over the net i am very sorry don't have much idea about that

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    If the case of trading based on the correlation should apply, then having majors trading pairs like the example above is the primary way of pairing on correlation. You will analyze the tow pairs differently, and if for example the EURUSD is going up, and the USDCHF is going up, it means that the EUR will have twice power over CHF. So, EURCHF long positive will be the best correlation.

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    Quote Originally Posted by Hukam View Post
    Brother I personally do trade only in Euro/Usd pair so don't have much idea about that you are saying right that Euro/Usd and Usd/Chf is a very good example in front of us along with it you can try to do this type of trading in many other pairs also for this detail you have to search all over the net i am very sorry don't have much idea about that
    Its usually done if hedging is not allowed. For example. I do trade aud/usd. If I do hedging I can open buy and sell position at the same time. But if a forex broker site does not allow this then you can do correlation hedging strategy. For example in my part I do use nzd/usd and aud/usd. Chance are if aud/usd turn bullish nzd/usd turn bullish also. Now the trick in here is that you can open one buy position in aud/usd and one sell position in nzd/usd and like doing hedging. The only difference is that you are trading two pairs.

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    Trader rinaji's Avatar
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    I do not understand what is meant by the thread starter. Are you going to combine two different pairs in one chart? If yes, then I guess it is impossible, unless you use an indicator, I've ever had an indicator to show different pair in chart, but I forgot about the name of indicator that I use for that.

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    Well i have an idea of correlated currency pairs such EUR/USD, GBP/USD they do tend to move in the same direction as the other moves. We can also consider that EUR/JPY, GBP/JPY also moves in the same direction. Thus, one may make use of such correlated currency pairs movement to take up the trade along the same market direction. Hence, making market analysis of one will help in taking up the trade in another as well.

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    Trader rinaji's Avatar
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    Quote Originally Posted by Ashviniurs View Post
    Well i have an idea of correlated currency pairs such EUR/USD, GBP/USD they do tend to move in the same direction as the other moves. We can also consider that EUR/JPY, GBP/JPY also moves in the same direction. Thus, one may make use of such correlated currency pairs movement to take up the trade along the same market direction. Hence, making market analysis of one will help in taking up the trade in another as well.
    Actually, the best pair for use in the correlation strategy is eur and chf, eur is always stable at rate 1.2xxx chf over the last three years after there are intervention of the Swiss central Bank, so eur pairs and chf pairs can be taken for correlation trading, for example eur/jpy and chf/jpy. Also eur/usd and usd/chf as inverse correlation.

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    Brother, if you want to see the co-relation of currencies, then you need to see USDX for the sake of USD crosses. Eur/Usd and Usd/Chf, Gold and Aud, Usd/Cad with Oil and gold I think these information will help you to find out the co-relation.

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    Quote Originally Posted by mehwishraheel View Post
    Brother, if you want to see the co-relation of currencies, then you need to see USDX for the sake of USD crosses. Eur/Usd and Usd/Chf, Gold and Aud, Usd/Cad with Oil and gold I think these information will help you to find out the co-relation.
    True, knowing the dollar index certainly can be very much helpful for all the traders to determine the possible market direction of the respective currency pairs with the help of which one can be able to make some good gains when they are trading in the forex market. Thus, one should always use the correlated currency pairs to diversify the risk involved.

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  10. #10
    Trader miya's Avatar
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    Yes, its a quite difficult thread for me because I'm a newbie to understand about this article for this reason i going and practicing repeated day by day its usually done if the trader goes on the step by step method by this process. I understand about this thread but in Forex the strategy and plan has made to be a professional in this business by this method the trader buys and sells their capital during their investment at the good time of frame to be a profitable trader in Forex Trading.

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