how to use correlation to trade forex?

How to use correlation to trade forex?

Correlation currency artbat aik shmaryati pemana hai ke kis terhan do mutaghirat ka aik dosray se talluq hai. artbat ka jitna ziyada hoga, woh itnay hi qareeb se munsalik hon ge. aik misbet artbat ka matlab hai ke do ki qadren aik hi simt mein harkat karti hain, aik manfi artbat ka matlab hai ke woh mukhalif simtao mein harkat karte hain. forex marketon mein, artbat ka istemaal is baat ki pishin goi karne ke liye kya jata hai ke kon se currency jore ki shrhin mil kar agay barh sakti hain. manfi tor par baahum marboot krnsyon ko bhi beijing ke maqasid ke liye istemaal kya ja sakta hai. How to use in trade forex currency ke joron ke bahami inhisaar ki wajah ko dekhna aasaan hai : agar aap Bartanwi pound ko japani yan ( gbp / jpy jora ) ke muqablay mein trade kar rahay hain, misaal ke tor par, aap asal mein tijarat kar rahay hain. gbp / usd aur usd / jpy joron ka ؛ lehaza, gbp / jpy ka kisi had tak kisi aik se talluq hona chahiye agar yeh dono deegar currency jore nah hon. taham, krnsyon ke darmiyan bahami inhisaar is saada haqeeqat se ziyada hai ke woh jore mein hain. jab ke currency ke kuch jore mil kar harkat karen ge, dosray currency ke jore mukhalif simtao mein harkat kar satke hain, jo ziyada paicheeda quwatoon ka nateeja hai. sab se pehlay, woh aap ko do pozishnon mein daakhil honay se bachney mein madad kar satke hain jo aik dosray ko mansookh kar dete hain, misaal ke tor par, yeh jaan kar ke eur / usd aur usd / chf taqreeban 100 % waqt mukhalif simtao mein harkat karte hain, aap dekhen ge ke taweel eur / usd aur lambay usd / chf ka port folyo hona wohi hai jaisa ke amli tor par koi position nahi hai —q Keh , jaisa ke artbat zahir karta hai, jab eur / usd release, usd / chf sale of se guzray ga. Diversification doosri taraf, taweel eur / usd aur taweel aud / usd ya nzd / usd ka ineqad aik hi position par dugna honay ke mutradif hai kyunkay artbatat itnay mazboot hain. tanawu par ghhor karne ka aik aur Ansar hai. chunkay eur / usd aur aud / usd ka bahami talluq riwayati tor par 100 % misbet nahi hai, is liye tajir un do joron ko –apne khatray ko kuch had tak mtnoa bananay ke liye istemaal kar satke hain aur ab bhi bunyadi nazriya ko barqarar rakhtay hain. misaal ke tor par, usd par mandi ka nuqta nazar zahir karne ke liye, tajir, eur / usd ke do laat kharidne ke bajaye, eur / usd ka aik laat aur aud / usd ka aik laat khareed sakta hai .

Assalamu Alaikum Dosto!

Correlation

Forex trading mein aksar ek hi asset ki behavior ko analyze karne par zor diya jata hai. Ek trader chart open karta hai aur dekhta hai ke price kaise move ho rahi hai. Ye, beshak, faida pohnchata hai, lekin is market mein kaam karne ka ek aur tareeqa bhi hai - currency pairs ki correlation.
Asaan matematik aapki trading system ko kafi behtar bana sakta hai. Ye article parhain aur aapki tajaweez ka sila milega. Correlation, mawafiqat hai jo mawafiq assets ki price movements ke darmiyan hoti hai.
Chaliye EUR/USD ko lelain, misaal ke tor par. Maan lijiye ke hamein aik uptrend hai aur hum ye poochte hain ke kya doosre currency pairs bhi is waqt rally kar rahe hain. Hum das charts khol sakte hain, aik time frame select kar sakte hain, unhein mawafiq kar sakte hain, un par ungli utha kar keh sakte hain ke GBP/USD wahan hai. Lekin, kya aisi judgement reliable hai?
Bilkul bhi nahi. Shayad, kisi ko qismat ne mil gaya ho, aur aise ghalatfehmiyon se nijaat pane ke liye, correlation coefficient calculate kiya jata hai.

Correlation Ke Types

Currency pairs ki correlation 0 se 1 ke darmiyan define hoti hai, jahan zero kamzor positive mawafiqat hai aur aik bohot taqatwar positive mawafiqat ke liye one hai. Jo zyada qareeb index maximum value ke hai, woh prices utna hi hamwaran chalti hain. Yehi baat -0 se -1 ke interval ke liye bhi hai, bas fark itna hai ke mawafiqat ulte hoti hai.
Autocorrelation bhi hoti hai. Yeh aik asset ke liye sirf data ka istemal karti hai taake ye dekhe ke future prices past prices ke mutabiq hain ya nahi.


Positive Aur Negative Correlation Ke Beech Ka Farq


Aksar naye traders positive aur negative correlation ke darmiyan farq samajh nahi pate. Isay asaan samajhne ke liye, chaliye doosre groups ke currency pairs ko compare karein:

• Pehla group hai EUR/USD aur AUD/USD;
• Dusra group hai EUR/USD aur USD/JPY.

Note karein ke dono groups ke pairs mein kaunsi currency shamil hai. Humare case mein, woh American dollar (USD) hai. Ab dekhein ke is currency ki position pair mein kaisi hai. Pehle group mein, dollar dono pairs ke denominator mein hai. Iska matlab hai ke ye asset groups ek dosre ke sath positively correlated hain.
Dusre group mein, dollar apni position badal deta hai. Pehle pair mein, woh slash ke peeche hai aur denominator hai, aur doosre pair mein - slash ke samne hai aur numerator hai. Is tarah, hum observe karte hain ke is group ke pairs ke darmiyan negative correlation hai.

• Positive correlation ke case mein, dono charts par signals milenge. Agar EUR/USD trend kam hota hai, to AUD/USD chart mein bhi wahi hoga.
• Negative correlation ke case mein, signals alag hote hain, yaani ke aapas mein ulte mutabiq hote hain. Agar EUR/USD trend neeche ja raha hai, to USD/JPY chart mein ulta movement dikhayi dega.

Pairs ke darmiyan correlation dhoondhna forex trading ke liye leading signals hasil karne ka ek aur tareeqa hai. Iske seeming complexity ke bawajood, ye amal mein bohot asaan hai.

Forex Correlation Kahan Se Aati Hai?

Iski ek wajah alag currencies ko mutasir karne wale factors ki similarity hai. Misal ke tor par, agar aap EUR/USD aur GBP/USD pairs le lain, toh unka positive correlation hoga, jo ke is baat ki wajah se hai ke euro aur pound dono European currencies hain, jo aksar American currency ke khilaf mushabeha taur par pesh aati hain. Is tarah, jab "Europeans" ke liye economic situation behtar hoti hai, toh both euro aur pound dollar ke khilaf barh jate hain.
Ye negative correlation ke liye bhi sahi hai. For example, agar hum EUR/USD aur USD/CHF pairs dekhein, toh humein ye dekhne ko milega ke pehle pair mein European currency base currency hai, jabke doosre mein situation ulta hai: dollar base currency hai aur franc quote currency hai. Bilkul is wajah se humein currencies ka inverse correlation milta hai.

Correlation Ke Pros Aur Cons

Correlation ka main faida ye hai ke isay samajhna asaan hai aur iska istemal karne mein kaaragar hai. Double trade yaani ke do currency pairs ya assets ko strong positive correlation ke sath ek sath na khareedain ya bechein, is risk se bachne ka ek tareeqa hai.
Lekin nuksan ke liye, traders ke sath sath statisticians bhi is tool ka istemal karte waqt ghaltiyan karte hain, jo iske drawbacks se judi hain.
Pehli baat to ye hai ke correlation coefficient cause-and-effect relation ko reflect nahi karta. Is wajah se ye saaf nahi ho sakta ke aik currency pair doosre ke movement ko lead karta hai ya ulta. Ye sirf correlation ka such hai. Kisi ko nahi pata ke iski wajah kya hai.
Dusri baat hai, time ke andar taqatwar mawafiqat. Aaj taalluq hai, kal nahi. Intraday traders ke liye, ye unke mid aur long-term colleagues ke liye zyada hota hai.


Risks
Jaise ke humne kaha, risk accuracy par depend karta hai jab currency pairs ke bare mein ghalat jawab milne ki khatra hoti hai. Beshak, apne haathon se calculation karna aapko ghalat faislon se bacha sakta hai, lekin zyadatar log in formulas ke sath nahi masroof hona chahte. Excel aapki madad mein aata hai, jo is process ko kaafi asaan bana deta hai. Currency ki correlation dhoondhne ke liye aaj kal bohot se websites hain jahan aap assets aur time frames select kar ke khud math nahi karke jawab hasil kar sakte hain.

Correlation K Tareeqay

Pehla tareeqa hai "double betting" se bachna. Agar aapko maloom ho ke EUR/USD aur USD/JPY ke darmiyan strong positive correlation hai, toh aap pehla pair nahi khareedenge aur doosra pair nahi sell karenge.
Doosra tareeqa - forex mein trades ko filter karna. Agar aapko do assets ke darmiyan strong positive ya negative correlation ka pata chala hai, aur agar aik ne long jane ka signal diya hai aur doosra short jane ka, toh behtar hai ke aap market se bahar rahein. Aisi contradiction ko ignore karna nuksan mein leke jaata hai.
Teesra tareeqa trades ki hedging ka hai. Agar do assets ke darmiyan taqatwar negative correlation ho, toh aik ko khareedna aur foran doosra bechna nuksan ko kam kar sakta hai, lekin munafa, beshak, kam ho ga.

Correlation Ke Usool

Chaliye EUR/JPY aur GBP/JPY ke Daily charts ko dekhein. MyFxBook ke mutabiq, inki correlation 0.94 hai. Ye bohot taqatwar positive direct correlation hai. Toh charts kaise behave karte hain?
Aap dekh sakte hain ke charts taqreeban ek sath move ho rahe hain. MetaTrader 4 Ke Liye Currency Pairs Correlation Indicators Kahan Se Download Karein
Sab se acha, aasan aur amli hai Ind_Correlation indicator. Ismein do curves shamil hain, jahan laal wala ek curve diye gaye muddat ke liye correlation value ko darust karta hai, aur neela wala average coefficient ki arithmetic average hai.
Indicator ka calculation mein shaamil hain:

• currency pairs;
• time frame;
• quotes shift (autocorrelation calculate karte waqt).

Correlation Coefficients


Correlation coefficient k do mukhtalif tyoes hen; aik Pearson aur dosra Kendall correlation coefficient, jin ki tafseel darjazel hai;

• Pearson sample par linear correlation hasil karne mein istemal hota hai. Is wajah se ise aksar linear correlation coefficient bhi kehte hain.
• Kendall rank correlation dhoondhne mein istemal hota hai. Ye nahi maamooli baat hai, kyun ke ye type istemal nahi hota.

Risk Kam Karna

Risk poori tarah se khatam nahi ho sakta, ye hamesha mojood rahe ga. Currency pairs ki correlation panacea nahi hai, aapko isay wazehi se samajhna chahiye. Isay sahi tareeqe se istemal karke aap nuksan ke mumkin numbers ko kam kar sakte hain, lekin ye kisi bhi nuksan ko credible taur par avoid nahi karta.

• Profits Ya Losses Ko Double Karna
  Kya koi farq hai ke kya aap aik asset par double unidirectional position khol rahe hain ya do correlated assets par ek hi order khol rahe hain?
  Haan. Zayada tar profits mein farq hai, jo ke barabar pips aur barabar lots ke saath hoga agar aap doosre option ka istemal karte hain, kyun ke correlation coefficient kabhi bhi 1 ke barabar nahi hota, is wajah se doosra asset ya to slow move kare ga ya chhota fasla tay kare ga. Ye profits ke liye sahi hai aur losses ke liye bhi.
• Risk Diversification
  Sirf long-term traders correlation ko forex mein risk ko portfolio mein kam karne ke liye istemal kar sakte hain. Yeh zaroori aur kaafi hai ke aap assets ko strong negative correlation ke sath khareedain ya bechein.
• Risk Hedging
  Agar aap do unidirectional positions kholte hain (for example, longs) pairs ke darmiyan jo strong negative correlation rakhte hain, toh aap apne nuksan ko had mein rakh sakte hain.

Yaad rahe ke ye approach zyada tar banks aur companies ke through kiya jata hai jo international market mein commodities trade karte hain. Aur ye future ke zariye karte hain.


Correlation: Breakouts Aur False Breakouts


Ek price level breakout ya uski asliyat ya jhooti hone ka pata karne ke liye aap doosre chart par dekhsakte hain jo strong positive correlation rakhta hai. Yeh tactic simple hai: agar traded currency pair mein breakout hai aur adjacent pair par reversal hai, toh participants is level ko most likely hold karenge.

Currency Pairs Correlation Strategy

Pair correlation signals ko manually track karna kaafi waqt barbaad karne wala kaam hai. Aapko barabar charts ke darmiyan switch karna padta hai, unki price dynamics ko analyze karna padta hai. Is task ko asaan banane ke liye aik khaas indicator hai - Overlay Chart. Iska maqsad kisi bhi do trading assets ke darmiyan correlation dhoondhna hai.
Yeh tool aik asaan tareeqe par kaam karta hai. Ek chart ko doosre par rakh deta hai aur phir inki dynamics ko mawafiq karta hai.
Overlay Chart aik custom tool hai, isay download karne ke baad aapko ise alag se terminal mein shamil karna hoga. Iske liye, installation files ko indicators wale folder mein copy karen, jo data folder ke root folder mein hota hai. Installation ke baad, terminal ko dobara chalain aur tool ko "Navigator" panel ke zariye chart mein shamil karen.
Indicator ko chart mein shamil karne ke baad, pairs ko select karen jin ki quotes aap compare karna chahte hain. For example, hum EUR/USD aur USD/JPY ke darmiyan correlation dekhein ge. Indicator ki settings mein in dono pairs ke naam enter karen, slash ke bina.
Tool do charts dikhayega jo ke ek doosre par rakhay jayenge. Aapki asani ke liye, chart par candlesticks ko alag alag rangon mein shadeed kiya gaya hai, jo ek doosre ke sath mukhalif hain. Is se signals ko ghalat hone ka khatra nahi hoga.
Aap "Mirroring" function ka istemal karke inverse correlation ke signals par trade karne ke liye bhi use kar sakte hain. Is function ko tool ki settings mein enable karen. "Mirroring" ki activation ke baad, neeche ka chart horizontally mirrored ho jayega.

Trading Ke Rules

Ye mashhoor hai ke indicator signals ke mutabiq trade karne ke liye kuch templates banaye jayein. Is maqsad ke liye, signals ke dhoondhne mein istemal hone wale dono currency pairs ke alag alag charts open karen aur in par trend lines draw karen. Overlay Chart indicator ko har ek par shamil karen mirroring function ke saath. Jab bottom chart mirrored ho, toh is par bhi aik mutabiq trend line draw karen.
Trend ko maloom karne ke liye QQE indicator ko overlaying ke bina istemal kiya ja sakta hai. Ab bas intezar karna baki hai ke correlation ho. Jaise hi aisi signal aaye, aap kisi bhi chart par mutabiq trade khol sakte hain.
Jitni zyada strong negative correlation hogi, utna hi mazboot reversal signal hoga. Intezar karen jab charts ki trend lines mukhalif raaste mein zyada se zyada phail jaayein, aur phir hi order kholen.


For example:

• Ek chart ka trend up hai. Mutabiq, linked pair ka chart down hona chahiye, inverse correlation ka asool hai. Hum is par sell order rakhenge.
• Ek pairs mein se ek ka trend down ja raha hai. Doosre chart mein, trend ulta chahiye, yani up. Is chart par hum buy order rakhenge.

Trend ki direction ko sirf trend lines se hi pehchana ja sakta hai nahi ke sirf. Is maqsad ke liye kisi bhi technical indicator, jaise ke MACD histogram, ka istemal kiya ja sakta hai.
Correlation signals ke through trade karte waqt, asli market analysis ke rules ko madde nazar rakna zaroori hai. For example, different time periods mein kuch currency pairs doosre ke sath correlated nahi rehte. Ek zinda misal EUR/USD aur GBP/USD pairs hai.
Market analysis ke standard rules ke mutabiq, ye pairs seedhi correlated hone chahiye, kyun ke in dono assets mein slash ke baad dollar hota hai. Lekin abhi ham dekh sakte hain ke is correlation mein kamzori aagayi hai. Ye Britain ki economic aur political situation, isme is mulk ka European Union se nikal jaana bhi shamil hai.

Risk Management

Jaisa ke humne pehle kaha, risk ko double bets se bacha ja sakta hai ya phir agar trader long term khail raha hai toh portfolio mein opposite pairs ko khareedna ya bechna isse kam kar sakta hai.
Lekin, aapko isse aage bhi ja sakte hain. Ralph Vince ye math trading ke results par apply karne ki tajaweez deta hai. Magic statistics aapko patterns ki mojoodgi ko reveal karne mein madad karega, jaise ke har profitable trade har bar ek losing trade mein muntaqil hoti hai aur ulta bhi. Agar ye masla pata chalta hai, toh trader ko isay eliminate karne ke liye apne trading system ke kuch parameters ko dobara tajwez karna chahiye.
Vince ne is scheme ki haqeeqat ko apni kitaab "The Mathematics of Money Management" mein behtareen aur bohot durust taur par bayan kiya hai. Aapko isay parhte waqt sochna hoga. Lekin forex mein hone wale ghaltiyan se bachaye gaye paisay is parhne mein bohot mehngayi parhe honge.

How to use correlation to trade forex?






*Forex Trading Mein Correlation Ka Istemal**
**1. Correlation Ki Samajh:**
Sab se pehle, traders ko currency pairs ke darmiyan ki correlation ko samajhna zaroori hai. Correlation positive ya negative ho sakti hai aur ye batata hai ke do currencies ke prices kaise move karte hain.

**2. Currency Pairs Ka Selection:**
Correlation trading mein, traders do currency pairs select karte hain jo strong correlation mein hote hain. Agar ek currency pair mein movement hota hai, toh doosre pair mein bhi similar movement hone ki ummeed hoti hai.

**3. Diversification Ka Istemal:**
Agar ek currency pair mein trade kar rahe hain jo positive correlation mein hai, toh traders ko doosre currency pair mein trade karke apne risks ko hedge karna chahiye. Isse diversification hoti hai aur overall risk kam hota hai.

**4. Correlation Ko Monitor Karein:**
Traders ko regularly correlation ko monitor karna chahiye. Correlation dynamics change ho sakti hain, isliye traders ko constantly updated rehna chahiye aur unke trading strategies ko accordingly adjust karna chahiye.

**5. Economic Factors Ka Dhyan Rakhein:**
Correlation ko samajhne ke liye economic factors ka dhyan rakhein. Economic indicators, monetary policies, aur geopolitical events currency pairs ke correlation ko influence karte hain.

**6. Technical Analysis Ka Istemal:**
Correlation trading mein technical analysis ka bhi istemal hota hai. Traders price charts aur technical indicators ka istemal karke correlation patterns ko identify karte hain aur trading decisions lete hain.

**7. Risk Management Ka Dhyan Rakhein:**
Correlation trading mein risk management bahut zaroori hai. Agar correlation unexpected changes mein aati hai, toh traders ko apne positions ko manage karne ke liye tayyar hona chahiye aur stop-loss orders ka istemal karna chahiye.

**8. News Events Ka Impact Samjhein:**
Economic news events aur announcements bhi currency pairs ke correlation ko influence karte hain. Traders ko regularly economic calendar ko check karna chahiye taaki wo upcoming events ka impact samajh sakein.

Correlation trading forex market mein ek powerful

### Forex Trading Mein Correlation Ka Kaise Istemaal Karein?
Forex trading mein correlation ek powerful tool hai jo aapko market trends aur currency pairs ke beech ke relationships ko samajhne mein madad karta hai. Correlation ki understanding se aap zyada informed trading decisions le sakte hain aur apne trading strategy ko optimize kar sakte hain. Yahan kuch key points hain jo aapko correlation ka istemal forex trading mein effectively karne mein madad karenge:

1. **Correlation Ki Samajh:** Correlation ka matlab hai do variables ke beech ki relationship. Forex trading mein, correlation currency pairs ke beech hoti hai. Positive correlation ka matlab hai ke do currency pairs ek hi direction mein move karte hain, jabke negative correlation ka matlab hai ke wo opposite directions mein move karte hain. Correlation ko measure karne ke liye aap correlation coefficient ka use kar sakte hain, jo -1 se +1 ke beech hota hai. +1 ka matlab hai perfect positive correlation aur -1 ka matlab hai perfect negative correlation.

2. **Currency Pairs Ki Correlation Analysis:** Forex market mein different currency pairs ke beech correlation ko analyze karna zaroori hai. For example, EUR/USD aur GBP/USD ki positive correlation ho sakti hai, jabke USD/JPY aur EUR/JPY ki negative correlation ho sakti hai. Aap currency pairs ki historical data ko analyze karke unke correlation patterns ko identify kar sakte hain.

3. **Diversification Aur Risk Management:** Correlation ka use diversification aur risk management ke liye bhi kiya ja sakta hai. Agar aapke portfolio mein multiple correlated currency pairs hain, to manage risk karna mushkil ho sakta hai. Negative correlation wale pairs ko include karne se aap apne portfolio ko diversify kar sakte hain aur overall risk ko kam kar sakte hain.

4. **Trading Strategies:** Correlation ko apni trading strategies mein integrate karna aapko better trading opportunities provide kar sakta hai. For example, agar aapko pata chal jata hai ke EUR/USD aur GBP/USD ke beech strong positive correlation hai, to agar EUR/USD me buy signal milta hai, to aap GBP/USD me bhi buy position consider kar sakte hain. Similarly, agar aapko negative correlation pata chalti hai, to aap opposing positions le sakte hain.

5. **Market Trends Aur Economic Events:** Market trends aur economic events correlation ko affect kar sakte hain. Economic indicators raise interest rates, inflation, aur geopolitical events currency pairs ke correlation patterns ko change kar sakte hain. In factors ko apni trading analysis mein shamil karke aap zyada accurate predictions aur decisions le sakte hain.

6. **Tools Aur Resources:** Forex trading mein correlation analysis ke liye various tools aur resources available hain. Correlation matrices, charting software aur online correlation calculators ka use karke aap currency pairs ke beech ke relationships ko easily monitor aur analyze kar sakte hain.

In points ko follow karke aur correlation ko apni trading strategy mein effectively integrate karke aap forex market mein behtar results hasil kar sakte hain. Correlation ki understanding se aap apni trades ko zyada strategic aur informed bana sakte hain, jo aapki trading performance ko improve karne mein madad karega.