Correlation in Forex
A clear definition of Correlation, with practical context for reading markets and making better trading decisions.
Definition
The tendency of two markets to move together, opposite each other, or independently over a chosen period. Correlation changes, so never treat it as permanent.
Practical forex example
Gold and USD may show negative correlation at times, but the relationship can weaken or reverse.
Why Correlation matters
Understanding Correlation helps traders interpret market information, plan decisions, and manage risk with more context.
Related forex terms
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