67# Correlation Breakout
Breakout of Correlation
Submuit By Abramo 25/01/2016
Correlation Breakout is trend breakout trading system based on an indicator of correlation of currency pairs, this shows the correlation between 8 currencies.
Time frame 15 min, 30min or 60 min.
Currency pairs: EUR,GBP, AUD, CHF, USD, NZD, CAD, JPY, XAU.
Metatrader Indicators:
S-B levels,
Exponetial moving average 50, low, close,
Exponetial moving average 50, high, close,
RSI (14, period, close),
Correl8 (correlation between 8 currencies).
Trading rules Correlation Breakout
Open 4h or daily chart and see what 's the direction of the trend if trend is up, trades only buy, if if trend is down, trades only sell.
Buy
Trend up time Frame 4H or daily.
RSI >50;
Price above the 50 EMA high,
Correl8: Green line above royal blue line.
Sell
Trend up time Frame 4H or daily.
RSI <50;
Price below the 50 EMA low,
Correl8: Green line below royal blue line.
Exit position
Place initial stop loss c 5-10 pips above/below the entry bar.
Exit at the levels of support or resistance.
In the picture Correlation Breakout in action.
Correlation Breakout
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