O'Reilly logo

The FX Bootcamp Guide to Strategic and Tactical Forex Trading by Wayne McDonell

Stay ahead with the world's most comprehensive technology and business learning platform.

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, tutorials, and more.

Start Free Trial

No credit card required

CURRENCY CORRELATION COEFFICIENT

You should always include an evaluation of currency correlation for the majors in every trade plan that you create. The correlation between currency pairs can change at any time, even for pairs, which are normally 95 percent-plus correlated.
Correlation is determined by what is known as the correlation coefficient, which ranges between -1 and +1. Table 7.3 explains the meaning behind that number.
TABLE 7.3 Correlation Coefficient
053

With Safari, you learn the way you learn best. Get unlimited access to videos, live online training, learning paths, books, interactive tutorials, and more.

Start Free Trial

No credit card required