Friday Trades With Currency Strength/Weakness/Correlations 4


Salve a tutti,

first of all let me tell you that I usually don’t trade like that but I wanted to “play” a little and so I applied my “Currency Strength/Weakness/Correlations” setup on a EURUSD 1 Minute chart. As you know starting from the last summer I moved my trading to higher timeframes. Very rarely I trade on timeframes lower that the 4Hours but I decided to give it a try as everything was in the right side.

The most important thing was that the correlation between EUR and USD was well below -50 meaning that the two currencies were inversely correlated. As you may have learned from my last post, most of the times the inverse correlation can give us better entry signals as we know that the two currencies will tend to move away from each other giving us a better chance of making profits.

Here’s a screenshot showing you the 5 trades I made for a total profit of a little less than 50 pips in 3 hours trade. Not great but not even bad :) Considering that it was Friday and the the US Market was opened just for a few hours.

The 3 indicators I used will be available Thursday Dec 1st here on PimpMyEA.com.

They will be the first of a long series of indicators and EAs that we use everyday in our personal trading. After a long debate, we (me and Paolo) decided to disclosure them. We really hope that you’ll like them and that you’ll find them useful to find your way to profit from the Forex market.

A presto,

Andrea


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4 thoughts on “Friday Trades With Currency Strength/Weakness/Correlations

  • Todd

    Nice!
    Keep it coming. Did you look at longer time frame to see how things were lineing up? Or did you just like the way the one minute time frame looked? Is this how the indicators look if so I like it. Though I still have alot of questions about corelation and how to find the best pair to trade. I will try to be still and I am sure it will unfold.
    Thanks for your willingness to help out.
    Pip On
    Todd

    • Andrea Post author

      Ciao Todd,
      in this case I didn’t look at higher timeframes as I was just “playing around” :)
      In the next days I’ll show you a few “setups” you can use to monitor multiple timeframes and/or multiple currencies.
      The indicators are exactly the ones that will be available on Thursday.
      If you got questions about correlation, just ask. In reality it is very easy to use it as a filter: you should try to take only trades on pairs with currencies with a correlation score at least negative… better if below -50. But with time you’ll learn the pairs that most likely are good for trading that way.
      Again… this can be used as a trading system alone or as a “filter” for an existing trading system that you already use.
      Cheers,
      Andrea

  • Mointy

    Hi Andrea,
    Finally something pretty good and on top of that its free! Happy to see that you still the good guy. Can’t wait to get to thursday.
    Thank to you and Paolo

    • Andrea Post author

      Ciao Mointy,

      thanks. This is the first of a long series of things that we developed in the last months (sometimes years) and that we use for trading every day.
      That is also the reason why they won’t be free.

      I want to be sincere with you, we learned that good thing have a value and that giving away for free is never a good thing for anyone: for us and for all of you as you don’t really get the “importance” of what we release. It has been that way for many of the things I released in those years for “free”. In any case, we’ll keep prices as low as possible.