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Date/Time: Sat, 23 Nov 2024 22:10:16 +0000
Post From: Offering To The Community: Forex: Currency Decorrelation (and Currency Strength)
| [2018-12-08 11:42:49] |
| Halco - Posts: 92 |
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USDCHF 4 HR chart with Relative Strength vs the USD index in the bottom pane. Note following A the downtrend in price continues but the RS starts going sideways. At B price makes a substantive low vs A but RS makes a higher low vs A. At C price makes a substantive low against B while RS makes a higher low vs B. I haven't attached the chart but between C and D the USD index and CHF index are trending opposite each other and the DFP shows the majority of currencies weak against the USD and strong against the CHF. And of course during this time the USDCHF RS is showing strength against the USD index as per this chart. What follows is a nice uptrend. Note also how RS gives early warnings of the ends both of the trends on this chart. BTW, just to be clear, the label in the RS pane says "USD-X" but the RS is against the decorrelated USD index. http://www.sierrachart.com/image.php?Image=1544269051982.png Date Time Of Last Edit: 2018-12-08 13:16:05
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