Currency corelation - page 2

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Get Other Currency Price as MA

Hi guys,

I'm new here. I have a small programming knowledge in MQL4.

I wonder if it is possible to get other currency pairs closing price and then set it as SMA(1).

Eg. I'm opening GBP/USD H1. The indicator would show a SMA(1) of EUR/USD H1 at that very GBPUSD chart. If the GBPUSD is in H4 then the EURUSD is also H4.

I've tried the search function on this forum, but couldn't find related post.

Could you show me the block of code? Thanks a lot.

Regars,

 

close

Solomon,

This indicator comes close. It plots the all MA's in one seperate window. You can chose the currency pairs and the MA settings. I changed the name of the indicator for my ease of recognition. Sorry to the author RoBik. Solomon, please save the indicator under its original name: "PairDifference"

Hope this helps.

Files:
correlation02.mq4  6 kb
 

Some other threads/posts related to this subject

https://www.mql5.com/en/forum/173001

https://www.mql5.com/en/forum/174886

https://www.mql5.com/en/forum/176231

https://www.mql5.com/en/forum/173799

https://www.forex-tsd.com/forum/debates-discussions/116-something-interesting-please-post-here/page3#comment_23415

https://www.forex-tsd.com/forum/debates-discussions/116-something-interesting-please-post-here/page5#comment_105875

https://www.forex-tsd.com/forum/debates-discussions/116-something-interesting-please-post-here/page3#comment_23410

 

Wow!

Wow!

That's an awfully lots of indicators. Will definitely try them.

Forex-tsd is the best!

Regards,

 

difference in pips

Anybody knows how to do an indicator who show only the difference between to pairs in "pips"

For ex. short eur/usd, and usd/chf short.

A single line or histogram that move from 0 line . So you put initial point like 15:00 15/06/08 and show you a line moving up and down,. So we might have on 18:35 19/06/08 a max. difference of 165 pips,. something like that.

Thanks

 

% change indicator

Hi,

I have been looking for an indicator which can alert me to which currency pair has moved the most over a certain time frame. By that I mean if I am looking to go long on a pair I'd like go long on the pair that is up most on the day and conversly if I am going to sell a pair I want to sell the one that is down most on the day. It would also be helpful to know how much a pair is up on the day/week/month. I am only really concerned with the 4 majors and to be able to see at a glance which pair has moved the most as a proportionate % change would be really helpful. Thanks in advance and if I haven't explained this well enough please let me know, English is only just my 1st language.

 

This was the best explanation of Forex Correlations that I have found.

Correlation Trades

Hedging can also be achieved with Correlation Trades. First, let’s explain correlation as there is lots and lots of confusion regarding this concept. Imagine that you are walking down the middle of a local mall holding hands with your sweetie. Since you are moving together in the same direction, there is a strong positive correlation. Now imagine that she spots a jewelry store, lets go of your hand and walks towards the jewelry store while you keep moving in a straight line. While she is moving away, the correlation is dropping and a divergence is created. If this action represented a trade, that divergence would be an increase or decrease in the value of the trade. Let’s assume that the divergence is positive and the trade has increased in value.

Now if you continue walking down the middle of the mall, and your sweetie walks in parallel with you near the storefronts, the correlation will return to a strong positive correlation while the divergence is maintained.

Now assume that she sees a jewelry store on the other side of the mall crosses in front of you to check it out. The correlation drops, possibly even into a negative correlation value and the divergence crosses back across the centerline to the other side. If the divergence value was positive on one side, it is now negative.

Once you both continue moving forward, the correlation will move back up to a strong positive value and as long as she stays near the storefronts and you walk down the middle, the divergence will be maintained.

If she calls for you to come see something in one of the displays and you move to join her in front of a jewelry window, the correlation will again fall and in this case, the divergence will be eliminated. If you both continue walk together the correlation will again become strongly positive.

fxd01:
Hi forex experts,

I've been trying to learn/understand the correlation between currency pairs. If I take GBPUSD and EURUSD as the pairs that move in the same direction, can you please answer the following? The assumption is that both these pairs move up or down fairly closely.

If I buy GBPUSD and sell EURUSD, I expect these two pairs cancel each other each other Profit/Loss and end with a negative balance which is the sum of the spread from both the trades.

However when one pair moves drastically and the other pair has a low momentum, the theory is that these pairs will catchup eventually. But when and how?

On Sep 4th I bought 1 lot GBUSD and sold 1 lot EURUSD at the same time. Now these trades stand at GBPUSD at -4000 and EURUSD at +1700. Basically after trade GBPUSD is down by 400 pips while EURUSD moved ony 170 pips. That is a huge difference. My questions are,

- As these are correlated pairs, the price move has to come back to normal. Is GBPUSD going to go up ( to -170 pips from the current -400pips) to be in synch with EURUSD OR Is EURUSD going go down to (from +170pips to -400pips) to keep the correlation?

- Now the difference between these two pairs is 400-170=230pips. Is there are chance to buy/sell these pairs to pocket some money from the expected correlation?

Here is the trade information

trade-1

4-Sep-06 1:40pm buy GBPUSD @ 1.9065

current price : 1.8652

current pl : -4000

trade-2

4-Sep-06 1:40pm SELL EURUSD @ 1.2855

current price : 1.2677

current pl : -1700

any help is appreciated.

Thanks.
 

There is really nothing about correlations that says that they MUST return back to the middle....Women are funny..

 

The best way to hedge is ......

Mukesh:
The best way to hedge is to earn swaps/interest while holding.

Yes Mukesh, that is the only left open by banks for small guys to take advantage.

Do you have any smart approach to take advantage of it? You must be. Desi wala hai naa aaap?

-C

 

Nice work but ...

Do you have the original to hand?

When I applied the indicator to a chart, MT4 locked up and left me with an egg timer for company.

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