FOREX - Intermarket Correlations

[Pip Rippy]

I would think that currency correlations would work best on daily timeframe. A macro type fundamental forex trade. Most of the traders on these type boards are generally smaller technical traders(4hr-2hr-1hr-30min-15min-10min). I would be interested in knowing if you could watch a intraday 5 min chart of gold futures - and when the gold chart starts to really trend - you notice that the USD/CAD starts to take off. Like the equity daytraders watch the nasdaq futures before placing a stock trade. A edge could be found if you could find a intraday correlation? If anybody knows of any leading intraday indicators in forex I would be interested!

[Mehlul]

I'm curious about the different ways to use correlations. I use them constantly for short-term trading, using candle formation and S&R. Does anyone else use them a different way for short-term trading?

mehlul@hotmail.com

[cicero]

Hi All,
You can try this indicator:
It is correlation between EUR/USD & USD/CHF.
cicero
//+------------------------------------------------------------------+
//| Correlation USDCHF/EURUSD .mq4 |
//| Copyright © 2005, Yuri Makarov. |
//| http://mak.tradersmind.com |
//+------------------------------------------------------------------+
//Correlates chf prive ON eur 1 min chart
// if chf bar (1 min) is greater than 3 pips it recommends sell/buy eur
//
#property copyright "Copyright © 2005, Perky_z."
#property link "Perky_z@yahoo.com"
#property indicator_separate_window
#property indicator_buffers 1
#property indicator_color1 OrangeRed
extern string Curency = "CHF";
double UsdChf[],UsdChfO[];
double Idx[];
double diff,diff1;
int init()
{
IndicatorShortName(Curency);
SetIndexStyle(0,DRAW_LINE);
SetIndexBuffer(0,Idx);
return(0);
}
void start()
{
//I've put the period statement in - this means that
// you can get close for other periods onto the current chart
ArrayCopySeries(UsdChf,MODE_CLOSE,"USDCHF",PERIOD_M1);
ArrayCopySeries(UsdChfO,MODE_OPEN,"USDCHF",PERIOD_M1);

int counted_bars=IndicatorCounted();
double USD;
if(counted_bars<0) return(-1);
if(counted_bars>0) counted_bars--;
int limit=Bars-counted_bars;
for(int i=0; i {


diff=(UsdChf[i]-UsdChfO[i]);
diff1=(UsdChf[i+1]-UsdChfO[i+1]);
Comment("Before",diff1,"\nnow ",diff);
if (Curency == "CHF") Idx[i] = UsdChf[i];
if (diff<=-0.0006 && diff<0)
{
Comment("diff ",diff," Buy eur");
Alert ("USDCHF ",diff," Difference BUY EURUSD");
}
if (diff>=0.0006 && diff>0)
{
Comment("diff ",diff," Sell eur");
Alert ("USDCHF ",diff," Difference SELL EURUSD");
}
if (Curency == "CHF") Idx[i] = UsdChf[i];

}
}

[UM_manager]

Or simply use this powerful tool by UnderstandMarket