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. :-)
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