Keenbase Trading » Products » Metatrader Indicators » Currency Strength and Correlation Indicator

KT Currency Strength and Correlation Indicator

Name: KT Currency Strength and Correlation
SKU: 12379
Price: 90.00 USD
Availability: InStock
Rating: 5.00 (1 reviews)

MT4 | MT5

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Description
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KT Currency Strength and Correlation indicator for MT4/MT5 provides a hybrid approach for selecting the most appropriate currency pairs using the strength analysis and currency pairs correlation.

If you trade Forex, having detailed information about the currency strength and currency pairs correlation can take your trading to new heights. The correlation will help to cut your risk in half, and strength analysis will help to maximize the profits.

How to use the Currency Strength Analysis

If your trading strategy provides a buying opportunity on AUD/JPY and using the KT Currency strength analysis you find that the JPY is going stronger than AUD. It is likely that the trade will end in a loss. When you have this indicator, you'll able to avoid such losses easily.

What our customers say

The best indicator I have found at keenbase. You only have to know or read about correlation am 100% sure you will have five pairs to profit from every day. Try it. I am too proud of KEENBASE with its indicators. I even advised my fellow traders to try it because the tool is too powerful. Trust me; you will not regret it. I am 100% sure you will be a profitable trader for the rest of your trading journey. Thanks a lot, Keenbase.

- Frank Kayondo

How to use the Currency Pair Correlation

If your trading strategy provides a selling opportunity on NZD/USD and GBP/JPY at the same time. Using the KT Currency pair correlation, you find that the correlation percentage between these two pairs is at 77%.

As these pairs are strongly correlated, trading them together will only double your risk. If you get a loss on NZD/USD, it is very likely that the trade on GBP/JPY will also end as a loss.

Features

Quickly find the strongest and weakest currency to verify the trade opportunity generated by your trading strategy.
Cut your risk by half or even one-third by avoid trading the strongly correlated currency pairs.
Receive alerts when a currency become the strongest or weakest among the currency basket.
Analyze the strength report using a currency pyramid which arranges them in order of strongest to weakest currency.

Currency Strength Analysis in Detail

Currency Strength analysis helps to find out the strength and weakness of currencies using a mathematical computation. Currency strength is calculated using the US Dollar Index, which works as a reference for other currency indexes.

It is based on a methodology that to successfully trading the Forex market, we should buy the strongest currency and sell the weakest currency

With a tool like KT Currency Strength and Correlation indicator, you can monitor and see the whole currency flow across the Forex Market on a single chart.

Choosing the Best Currency Pair

If your trading strategy provides a buying opportunity GBP/USD and EUR/USD. As both of the pairs are strongly positively correlated, trading them both would only double the risk.

Using the currency strength pyramid, you can find out which is the strongest currency out of GBP and EUR. If GBP is stronger than EUR, you should choose the GBP/USD, or if EUR is stronger than GBP, you should pick the EUR/USD.

Avoiding the Flat Market

If your trading strategy provides a buying opportunity on AUD/JPY and You find the Australian Dollar, and Japanese Yen arranged adjacently in the currency strength pyramid.

kt currency strength and correlation indicator mt4 mt5 pyramid

It reflects a situation in which both of the currencies are either strongest or weakest at the same time. Having both the tendencies together will end up as a sideways market.

Currency Pairs Correlation in Detail

Generally speaking, correlation is a statistical method to measure the relationship between two trading assets. Currency Correlation shows an extent to which two currency pairs move in the same, opposite, or random within a particular period.

A correlation of +1 is known as the perfect positive correlation. It means that the two currency pairs will move in the same direction 100% of the time, such as EUR/USD and GBP/USD.
A correlation of -1 is known as the perfect negative correlation. It means that the two currency pairs will move in the opposite direction 100% of the time, such as EUR/USD and USD/CHF.
A correlation of 0 means the relationship between two currency pairs is random. Their price movement is not related to each other.