Triad Trading Formula Review
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How else do you trade correlation?
Our other method involves the difference in spread of the two currencies. In the above example, at the end of the chart, the currencies are 14 pips apart from eachother from where we started at the beginning of the chart. Remember, that is how we made our money.
So, on EACH CANDLE, we figure out how far they are apart from eachother, and plot that value on a price chart. The price chart ends up looking like picture below. This picture is of a “synthetic pair”..a cross between EURUSD and GBPUSD. THIS IS A METATRADER CHART. I created my OWN chart with this data, and you can apply ANY indicator or system to this chart!! This is very important..it is a standalone chart. You can literally TRADE on this chart as if it were it’s own pair..so we’ve created NEW currency pairs!
This chart looks like a normal chart, but that is about 2 days worth of trading candles, and a move of 645 total pips. Pretty sizeable move.
Anyways, this is nothing more than the difference of the two currencies. As this chart goes up, it simply means that the EURUSD is separating from the GBPUSD. As the chart goes down, the GBPUSD is going back towards the EURUSD.
So, going back to the original theory, we simply buy one and sell the other based on our indicators (trend, counter trend, and breakout) on this chart. And when trades are made on this chart, we simply buy one currency and sell the other (all outlined in the course).
Correlation Chart Benefits:
- More volatile..tends to move more than either of the pairs by themselves
- More predictable..trends are more defined and go longer and counter trends are more obvious
- Jumps..have seen jumps of over a thousand pips in any given week, and 400-500 pips (or more) in any given day.
To wrap it all up, correlation has been around for a long time, but has just recently been applied to trading. ForexImpact has taken it a step further, giving traders the ability to trade BRAND NEW PAIRS created by the differences in correlated pairs, giving the trader an almost unfair advantage by trading in a way that has been previously unavailable. Even those users who do trade on correlation in the forex already will not have these brand new charts created by us! Trade safer, smarter, and in a different way!