SIMPLE educational POST about DXY and how to USE it!
Today I have told you to close the position of NZD/USD in profit before it went up.
Why did I do this? Because I`m checking correlations.
Whenever you trade a MAJOR-PAIR with USD/XXX or XXX/USD do make sure to use the US-DOLLAR-INDEX (DXY) to check it for valid inter-market-correlations for your asset.
Whether it`s a positive or negative correlation - you can always take advantage of the correlation if there is one.
In this case, the negative correlation was more than obvious.
Try it yourself.
Fun fact:
The weighting of EURO is currently at 56,7%.
The US-DOLLAR-INDEX is actuall USD/EUR.
You don`t believe? Check it!
LEAVE A LIKE AND A COMMENT - I appreciate every support! =)
Peace and good trades
Irasor
Wanna see more? Don`t forget to follow me.
Any questions? PM me. :-)
Why did I do this? Because I`m checking correlations.
Whenever you trade a MAJOR-PAIR with USD/XXX or XXX/USD do make sure to use the US-DOLLAR-INDEX (DXY) to check it for valid inter-market-correlations for your asset.
Whether it`s a positive or negative correlation - you can always take advantage of the correlation if there is one.
In this case, the negative correlation was more than obvious.
Try it yourself.
Fun fact:
The weighting of EURO is currently at 56,7%.
The US-DOLLAR-INDEX is actuall USD/EUR.
You don`t believe? Check it!
LEAVE A LIKE AND A COMMENT - I appreciate every support! =)
Peace and good trades
Irasor
Wanna see more? Don`t forget to follow me.
Any questions? PM me. :-)
Nota
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.