Why do prices move in the same direction but with a lag on correlated instruments? - page 2

 
Алексей Тарабанов #:

Gone to bed.

It's a flood! Complained

 
osmo1709:
What causes such a lag? That is, let's say the price goes down on GBPUSD, and on GBPYen stands, and only after some time also starts to go down, but passes about the same number of pips as GBPUSDB but with a lag.

Which market are you talking about?

If you are talking about the FOREX, you have the wrong section

 
prostotrader #:

Which market are you talking about?

If you're talking about FOREX, you've got the wrong section.

Isn't Forex a stock exchange?

 
osmo1709 #:

Isn't Forex a stock exchange?

I do not know how to say it, it always seemed to me that FOREX is for "Len Golubkov", who think that investing 100 quid today, tomorrow they will wake up millionaires.

I think it's too early for you to write in this section.

 

The easiest market is the stock market. Buy and hold.

Forex is for professionals. But in the forex market, on the contrary, everyone is jumping in. Even those who do not understand what it is and how to open the trading terminal.

We see how often they ask for advice on the forum. How do I withdraw money from the terminal? I came across a case where I don't know where and how I put it). Asked me for help.

 
osmo1709 #:

That's flooding! Complained

Complained about me going to bed? Novo

 
osmo1709:
What causes such a lag? That is, let's say the price goes down on GBPUSD, and on GBPYen stands still, and only after some time also starts going down, but passes about the same number of pips as GBPUSDbut with a lag.
Re. There are no correlated instruments in forex. Gbpusd and gbpjpy are not correlated instruments, they are pound vs dollar and pound vs yen. In both cases, we are trading the pound against something. What happens is that the pound starts rising against the dollar. But it is not clear whether the pound is rising or the dollar is falling. If the pound is rising, it will probably rise against the yen. Then you will see a correlation and it could be used. But even in that case, the yen might grow in proportion to the growth of the pound and there would be no movement on the pound. Correlations such as you have found are more of a self-defeating thing. The problem is that the pound dollar is x/y and the poundena is x/z. Human mathematics nowadays doesn't know how to find x from an equation system like x/y=2; x/z=3, find x,y,z. I have come up with a solution on how to express the notional value of an individual currency from all pairs, but it is not a perfect solution and no stable correlations could be found based on it. So, what you've written is there, but it's not so easy to make a stable pattern from it, you'll have to fiddle with it. There will always be a lag and a lead, but it is not known in which pair and when it will start or if it will start.

Correlations are better sought on stocks. For example, within a sector. Take intel-amd. One sector, direct competitors, limited market. The growth of one prevents the growth of the other, but together they can grow little by little because of the overall growth of the market. It will not be easy, but it is realisable. With currency pairs it is much more difficult and it is not clear if it is possible in principle.
 
Maxim Romanov #:
Re. There are no correlated instruments in forex. Gbpusd and gbpjpy are not correlated instruments, they are pound vs dollar and pound vs yen. In both cases, we are trading the pound against something. What happens is that the pound starts rising against the dollar. But it is not clear whether the pound is rising or the dollar is falling. If the pound is rising, it will probably rise against the yen. Then you will see a correlation and it could be used. But even in that case, the yen could grow proportionally to the pound rising and there would be no movement on the pound. Correlations such as you have found are more of a self-defeating thing. The problem is that the pound dollar is x/y and the poundena is x/z. Human mathematics nowadays doesn't know how to find x from an equation system like x/y=2; x/z=3, find x,y,z. I have come up with a solution on how to express the notional value of an individual currency from all pairs, but it is not a perfect solution and no stable correlations could be found based on it. So, what you've written is there, but it's not so easy to make a stable pattern out of it, you'll have to fiddle with it. There will always be a lag and a lead, but it is not known in which pair and when it will start or if it will start.

Correlations are better sought on stocks. For example, within a sector. Take intel-amd. One sector, direct competitors, limited market. The growth of one prevents the growth of the other, but together they can grow little by little because of the overall growth of the market. It will not be easy, but it is realisable. But with currency pairs it is much more difficult and it is not clear whether it is possible in principle.

Keep and correlate in forex, everything works fine

AUDJPY-NZDCHF, CADJPY-NZDCHF, NZDJPY-CADCHF, AUDCHF-NZDCAD etc.

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The signal for a trade is ripe


 
osmo1709 #:

Isn't forex a stock exchange?

Exchange is centralised, forex is not, but it is essentially the same thing. Whatever Lenya Golubkov says, except that they also look into the glass.)

 
osmo1709:
What causes such a lag? That is, let's say the price goes down on GBPUSD, and on GBPYen stands, and only after some time also starts going down, but passes about the same number of pips as GBPUSDB but with a lag.

You've discovered a gold mine... If only it were that simple.

Reason: