Demo contest

Demo contestDemo Contest

[:en]Stage 1 - 16.01.2012 - 29.01.2012

Stage 2 - 30.01.2012 - 12.02.2012

Stage 3 - 13.02.2012 - 26.02.2012

Stage 4 - 27.02.2012 - 11.03.2012

Stage 5 - 12.03.2012 - 25.03.2012

Stage 6 - 26.03.2012 - 08.04.2012

Stage 7 - 09.04.2012 - 22.04.2012

Stage 8 - 23.04.2012 - 06.05.2012

Stage 9 - 07.05.2012 - 20.05.2012

Stage 10 - 21.05.2012 - 03.06.2012[:jp]????1 - 2012?1?16? - 2012?1?29?

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Pivot point trading system review

Pivot point trading system reviewPivot Point Trading System Review

The pivot point is the stage at which the industry route changes for the day. Using some easy mathematics and the past periods great, low and near, a sequence of factors are produced. These factors can be crucial assistance and stage of resistance stages. The rotate stage, assistance and stage of resistance stages measured from that are jointly known as rotate stages. Every day the industry you are following has a start, great, low and a near for the day.

The easiest way to use pivot point stages is to use them just like your frequent assistance and stage of resistance stages. Just like good ole assistance and stage of resistance, cost will analyze the stages continuously. The more periods a currency trading couple variations a rotate stage then turns around, the more powerful the stage is. Actually, pivoting essentially implies attaining a assistance or stage of stage of resistance and then treating. The purpose pivot points are so well-known is that they are predictive in contrast to lagging.

If you would rather work the rotate factors out by yourself, the system I use is below:

Resistance 3 = High + 2*(Pivot Low)

Resistance 2 = Pivot + (R1 S1)

Resistance 1 = 2 * Pivot Low

Pivot Point = (High + Close + Low)/3

Support 1 = 2 * Pivot High

Support 2 = Pivot (R1 S1)

If the industry reveals above the rotate factor then the prejudice for the day is long deals. If the industry reveals below the rotate factor then the prejudice for the day is for brief deals.

About the trading diary

About the trading diaryAbout the Trading Diary

The Purpose of the Diary

It is difficult to absorb knowledge from training courses in such a short space of time. The Trading Diary supplements this knowledge, providing readers with continuous exposure and the opportunity to apply their acquired knowledge, reinforcing sound technical analysis and trading principles.

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Not Investment Advice

The Trading Diary is intended to illustrate the techniques used in technical analysis and trading; and should not be interpreted as investment advice. Please read the Terms of Use .

Market Strategy

For details of my trading philosophy, see My Strategy .

Conclusions for an index are the overall strategy relating to that market. This does not mean that every sector of the market should be treated in the same fashion. There may be some sectors which trend in the opposite direction to the general market. If the overall strategy is short, there may still be opportunities to go long in some sectors that trend counter to the general market.

Analysis Tools

Market analysis is conducted using:

Trend channels to highlight primary and intermediate trends;

Classic Dow theory;

Support and resistance levels;

Chart patterns;

Price-volume relationships;

Reversal days, gaps and candlesticks.

Twiggs Money Flow, Volume Oscillator, Moving Average and MACD indicators are used to highlight some of these changes.

Time Frames

This is only a rough guide, as can be seen from the overlap.

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Market Stages

There are four possible stages/phases:

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Base or bottom

The market ranges between support and resistance, after a stage 4 down-trend. The index normally whipsaws around long-term moving averages and there may be clear signs of accumulation, including declining volume on downward movements and increasing volume on rallies.

Primary up-trend

Stage 2 up-trends follow a breakout from stage 1. The index respects long-term moving averages (from above) and there should be strong volume on rallies and light volume on corrections.

Top

The market levels off into a trading range after a stage 2 up-trend. The index normally whipsaws around long-term moving averages. with greater volatility than stage 1. A stage 3 top normally continues to show high volume as the market repeatedly attempts to overcome resistance. A dry-up of volume may signal that the trading range will breakout on the upside, reverting back to a stage 2 up-trend.

Primary down-trend

A stage 4 down-trend follows a break below a stage 3 top. The index respects long-term moving averages (from below), with strong volume on declines and light volume on upward corrections.

Sometimes the market forms a chart pattern, such as a descending or ascending triangle, in place of a rectangular trading range in stages 1 or 3.

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Crude oil trading

Crude oil tradingYou are here

Crude oil is a naturally occurring petroleum product commonly used in energy production and manufacturing. It is typically purchased with the intent to be refined into everyday uses such as diesel, gasoline, heating oil, jet fuel, plastics, cosmetics, medicines and fertilisers. As such its price has a dramatic impact on the global economy. It is traded in high volumes all around the world.

Learn To Trade Oil - Free Webinars, Ebooks and 1:1 Training at Markets

The price of oil is a critical global economic factor, which means that trading is influenced by political and commercial concerns. In general, higher oil prices tend to undermine economic growth as this increases travel and shipping expenses, which increase inflationary pressures. If the price of oil remains high over a long period, the cost of downstream products like plastics and fertilisers are affected as well.

What this means, from a trader’s point of view, is that when the price of oil is high and has remained high for some time, oil producers take steps to reduce the price. Groups like the Organization of Petroleum Exporting Countries or OPEC agree to production slowdowns, and importers reduce purchases. So a trader has to watch for times when a high oil price hits “ resistance ,” and read the news carefully to see when to go short.

But, having a low oil price for an extended period is also not an unequivocally positive factor for the global economy. When the price of oil remains low for too long, the companies that explore and drill for oil cannot raise the capital they need to find and produce enough of it. Because a sufficient supply of oil is essential to the economic security of all of us, it is critical that these companies be able to continue their work.

So, what happens, when the price remains low for a long time, is that importers step up purchases and groups like OPEC reduce production – they do not care to sell at low prices anyway. Again, the trader has to watch for these moments of “ support floor ,” and act accordingly.

But there are other events that have to be observed when trading oil. Geopolitical insecurity almost always has a direct effect on the price of the commodity. War, or the threat of conflict, will push the price of oil up. Similarly, if there is political instability affecting an important oil producer – and that happens a lot, as many are developing countries – elections or other political changes in these countries can push up the price as well.

The trader also has to be aware of the destabilising effect that shale oil production in the US has had on the global oil price. The industry is still trying to adjust to the vast changes that this trend is imposing on it.

How is oil actually traded?

Crude oil futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of crude oil (eg. 1000 barrels) at a predetermined price on a future delivery date. Forex platforms now provide ways for you to trade into oil futures, without actually having to trade the futures themselves, and thus avoiding the necessity of ultimately taking delivery of the oil which is a concomitant of the futures trade.

In line with the world’s standard, there exist two major classifications of crude oil, and different platforms trade each. US oil is referred to as West Texas Intermediate (WTI), and UK oil . called Brent Blend oil. The WTI is considered light with low sulphur content, is used commonly in US. The light density coupled with less impurities makes WTI oil a sweet crude oil, meaning it has a low density, and is more economical to refine and transport. Typically to demonstrate its worth, it trades higher at a dollar or two to Brent. The Brent Blend although not as light as the WTI is a sweet crude and contains approximately 0.37% sulphur. Being refined in Northwest Europe, it is used in production of petrol and middle distillates.

It is possible to trade both of these crude oils on different forex platforms. Trading crude oil on the forex platform may be somewhat different from trading in other commodities. Some platforms simply trade CFDs in oil, and then you trade the contract just as you would a currency pair. Oil is generally traded against the dollar, as oil futures contracts are always priced in dollars.

You will find, on your forex platform, a trading pair like OIL/USD or sometimes CLD/USD. You can go long or short on this pair, just as you would other pairs.

What does make trading crude oil somewhat different than other pairs is that the market is limited by time on some platforms. Oil trading hours are limited to between 02:00 and 21:00 London time on some platforms, as these platforms offer access to specific buyer/seller contracts and not to CFDs.

Similarly, some platforms use contracts for oil that have expiration dates, and the trader should be aware that holding them for too long will lead to their being rolled over into the new contract price.

For example, at expiry time 12:00 GMT the old contract closing price was at US$35.50 per barrel and the new contract price is trading at US$40.50. At expiry, the old deal will be closed automatically at US$35.50. Any profit or loss will be reflected in the margin and thus in the free balance. You have to give special instruction to the dealer, and so the dealer will open a new deal at a price of $40.50 (the price of the new contract at 12:00 GMT), and place an amount equal to the remaining margin on the old deal, unless you provide other instructions.

So it is very important, when trading oil on your forex platform, to be aware of any restrictions or time limitations that may apply.

But clearly, the ability to gain such easy access to this fantastically liquid and fast-moving world market is a terrific opportunity for traders.

Current residential availabilities

Current residential availabilitiesdirections to our office

If you have a GPS or maps app on your phone, the physical address is:

801 Oakpark Drive. Bluefield, WV 24701

(Please do not mail items to this address)

Coming from Bluewell on Rt 52:

-Continue on Rt 52 towards Bluefield. You will pass Krogers on your left and head down the mountain. As you come down the mountain you will pass a Subway Recycling Center on the right. At the bottom of the hill you will bare RIGHT onto Old Bramwell Road. Make your first right onto Armory Road. (If you pass the armory on the right, you have gone too far!) Follow Armory Road through the curve past the church. You will make the first right onto Oakpark Drive. (You should see the sign for The Oaks MHP).

-Continue on Rt 52 North towards Bluewell. You will come to a traffic light for Airport Road (Arrowhead Deli gas station CVS are at this light). Turn left at this light towards the Brushfork Armory. Bare Right onto Old Bramwell Road (you should see the sign for the armory). Pass the armory on your left. Turn left onto Armory Road. Follow Armory Road through the curve past the church. You will make the first right onto Oakpark Drive. (You should see the sign for The Oaks MHP).

Critical thinking in everyday life9strategies

Critical thinking in everyday life9strategiesCritical Thinking in Everyday Life: 9 Strategies

Most of us are not what we could be. We are less. We have great capacity. But most of it is dormant; most is undeveloped. Improvement in thinking is like improvement in basketball, in ballet, or in playing the saxophone. It is unlikely to take place in the absence of a conscious commitment to learn. As long as we take our thinking for granted, we don’t do the work required for improvement.

Development in thinking requires a gradual process requiring plateaus of learning and just plain hard work. It is not possible to become an excellent thinker simply because one wills it. Changing one’s habits of thought is a long-range project, happening over years, not weeks or months. The essential traits of a critical thinker require an extended period of development.

How, then, can we develop as critical thinkers? How can we help ourselves and our students to practice better thinking in everyday life?

First, we must understand that there are stages required for development as a critical thinker:

Stage One: The Unreflective Thinker (we are unaware of significant problems in our thinking)

Stage Two: The Challenged Thinker (we become aware of problems in our thinking)

Stage Three: The Beginning Thinker (we try to improve but without regular practice)

Stage Four: The Practicing Thinker (we recognize the necessity of regular practice)

Stage Five: The Advanced Thinker (we advance in accordance with our practice)

Stage Six: The Master Thinker (skilled insightful thinking become second nature to us)

We develop through these stages if we:

Implementing alearning and development strategy

Implementing alearning and development strategyImplementing a Learning and Development Strategy

Implementing a learning and development strategy

As learning and development practitioners we spend most of our time implementing. This stage is where we most like to be, but it is also the stage where most waste can occur. Provided the learning and development strategy has been created and communicated properly then work at the implementation stage should be focused on supporting the business.

Analysis: Which clarifies the instructional problems and objectives, and identifies the learning environment and learner's existing knowledge and skills. Or simply involves the process of conducting a learning needs analysis to accurately identify learning needs.

Usps post

Usps postMain Office Wichita Falls Post Office

Toll-Free: 1-800-Ask-USPS® (275-8777)

Retail Hours

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PO Box Delivery Time

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Lot Parking

Commodities crude oil

Commodities crude oilCommodities: Crude Oil

Crude oil is a naturally-occurring substance found in certain rock formations in the earth. To extract the maximum value from crude, it needs to be refined into petroleum products. The best-known of these is gasoline, or petrol. Others include liquefied petroleum gas (LPG), naphtha, kerosene, gas oil and fuel oil.

Oil wells are used to release the oil from within the earth. Some of the earliest developed oil wells were drilled in

using bamboo poles. These oil wells were developed in 347 A. D. for the sole purpose of providing enough fuel to create a thriving salt industry. By the 1950s, crude oil became a global energy source, which in effect killed the whaling industry by making whale oil obsolete.

In the crude oil industry, there are oil names (such as Brent Light Crude Oil and Bonny Light) and there are oil types (such as light, heavy, sweet and sour). Light oil has a low density viscosity, while heavy oil is of higher density. Sweet oil has less sulfur, and sour oil has excessive sulfur. The world market prefers light, sweet crude oil, largely because it requires less refinement and production time before going to market. (Find out how to stay on top of data reports that could cause volatility in these markets in Become An Oil And Gas Futures Detective .)

A sample commodity futures contract for crude oil is shown in the following table.

Crude Oil Contract Specifications

Documentary collection

Documentary collectionDocumentary Collection

DEFINITION of 'Documentary Collection'

Letter Of Credit

Bill Of Exchange

BREAKING DOWN 'Documentary Collection'

A key document in documentary collections is the bill of exchange or draft, which is a formal demand for payment from the exporter to importer. D/Cs can be classified into two types, depending on when payment is sought by the exporter: 1) documents against payment (D/P), which requires the importer to pay the face amount of the draft at sight, or 2) documents against acceptance (D/A), which requires the importer to pay on a specified future date.

In a D/P collection, the exporter ships the goods and then gives the shipping documents to his or her bank (which is also known as the remitting bank). The bank forwards these documents to the importers bank (known as the collecting bank), which will only release the documents to the importer on receipt of payment for the goods. The collecting bank then remits the funds to the exporters bank for payment to the exporter.

A D/A collection differs from a D/P collection because the exporter extends credit to the importer through a time draft in the latter case. Once the importer signs the time draft which becomes a binding obligation to pay by the due date shown on the draft because of the signed acceptance the documents are released to the importer. The collecting bank contacts the importer on the due date for payment, which upon receipt is remitted to the exporters bank for payment to the exporter.

The exporters risk is obviously higher in the D/A collection process, since the exporter has no control over the goods after the importers acceptance and may not get paid for them.

In terms of risk, D/Cs are much safer than an open account but have fewer safeguards than a letter of credit. since the banks neither guarantee payment nor verify document accuracy and authenticity. These features can be exploited by fraudsters posing as either the exporter or importer. As a result, D/Cs are not recommended for exports to nations that are politically or economically unstable. Overall, because of their lower cost and simple process, D/Cs are best suited for established trade relationships in sound export markets, and for transactions involving ocean shipments rather than air or land shipments which are more difficult to control.

Online trading companies in usa

Online trading companies in usaPolymer Trading USA LLC

Polymer Trading USA is an international trading company that specializes in commodity resins. We work closely with distributors and manufacturers of all plastic products to find consistent and competitive sources of plastic resin. Our areas of specialization include polypropylene, polyethylene, polystyrene, PVC and PET.

We serve a diverse range of industries and companies because plastic resins are used in virtually every culture around the globe. Our extensive knowledge of the products and the manufacturers (supply) allows us to quickly and efficiently meet the needs (demand) of the distributor or end-user of the polymer products.

Polymer Trading USA has direct access to worldwide producers of polymer feedstock (polyolefins). Therefore, we can offer the distributor or manufacturer the broadest range of feedstock products. We focus on producers that maintain high levels of quality and consistency because we know the end user desires a high quality product also.

Polymers and Resins (Polimeros e Resinas)

Polypropylene (Polipropileno)

Polyethylene (Polietileno)

Polystyrene (Poliestireno)

Customer service and technical expertise make a difference. We offer you both. Call Today at

1 832 581 2498.

Forex traders leads

Forex traders leadsForex Traders Leads

Forex Traders Leads : would our list of Forex traders includes their first and last names and telephone numbers e-mail addresses website opt in information and much more. This list was extremely expensive to come by and includes a downloadable e-mail list of Forex stock traders. Marketing to a list of Forex traders just got easier with our brand-new Forex traders e-mail list for sale. Includes thousands of records that contain vital data and information regarding recently signed up Forex currency exchange traders e-mail addresses. A current list of currency exchange traders and Forex traders are now available for immediate download in our members only area. We also have other investor lists available such as our CBS Market Watch Investor List, Our Day Trading Stock Investor List and our High Net worth Investor Lists as Well.

SAMPLE LEADS: Simply Fill Out The Form Below to Receive a Sample of This and Other Databases!

How Did You Hear About Us Online? *

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The london summit elevator pitch

The london summit elevator pitchNovember 11-12 2013

Apply to present

The Forex Magnates Elevator Pitch is the peak of the Forex Magnates London Summit. Following last year's success (get a glimpse here ), this year's event is geared up to host a leading group of innovative and ground breaking companies. The competition includes a 3 minute pitch on stage, with an audience containing a huge roster of the industry's leading senior management, as well as coveted banks, investment groups and venture capital funds as well as online and tv media coverage. An award for the winner will be presented immediately after the competition ends and as always - drawing a curious crowd. As much as your product is an attraction - presentation skills are a huge advantage, so be prepared for a fast-paced, exciting and different pitch session like you've never seen before.

If you think your product should be on stage, and if you're able to "burn the stage" with an exciting presentation, we want you there.

How to trade currency and commodity correlations

How to trade currency and commodity correlationsHow To Trade Currency And Commodity Correlations

by Cory Mitchell

Correlations between the world's most heavily traded commodities and currency pairs are common. For example, the Canadian dollar (CAD) is correlated to oil prices due to exporting, while Japan is susceptible to oil prices because it imports most of its oil. Similarly, Australia (AUD) and New Zealand (NZD) have a close relationship to gold prices and oil prices. While the correlations (positive or negative) can be significant, if forex traders want to profit from them, it's important to time a "correlation trade" properly. There will be times when a relationship breaks down, and such times can be very costly for a trader who does not understand what is occurring. Being aware of a correlation, monitoring it and timing it are crucial to successful trading based on the inter-market analysis provided by examining currency and commodity relationships.

Deciding Which Currency and Commodity Relationships to Trade

Not all currency/commodity correlations are worth trading. Traders need to take into account commissions and spreads. additional fees, liquidity and also access to information. Currencies and commodities that are heavily traded will be easier to find information on, will have smaller spreads and liquidity that is more likely to be adequate.

Canada is a major exporter of oil, and thus its economy is affected by the price of oil and the amount it can export. Japan is a major importer of oil, and thus the price of oil and the amount it must import affects the Japanese economy. Because of the major effect oil has on Canada and Japan, the CAD/JPY positively correlates with oil prices. This pair can be monitored as well as the USD/CAD. The downside is that the CAD/JPY generally has a higher spread and is less liquid than the USD/CAD. Since oil is priced in U. S. dollars throughout most of the world, the fluctuating dollar impacts oil prices (and vice versa). Therefore the USD/CAD can also be watched given that the two countries are major oil importers and exporters.

Figure 1 shows that there are times when the currency pair and oil diverged. The oil prices are adjusted. Figure 2 uses unadjusted oil prices and, through 2010, a strong correlation can be seen showing it is important to monitor correlation in real-time with actual trade data.

Australia is one of the major gold producers in the world. As a result, its economy is impacted by the price of gold and how much it can export. New Zealand is a major trading partner with Australia and is thus highly susceptible to fluctuations in Australia's economy. This means that New Zealand is also highly affected by Australia's relation to gold. In 2008, Australia was the fourth-largest gold producer in the world. In 2009, the U. S. was the third-largest buyer of gold. Therefore, the AUD/USD and NZD/USD are suitable for trading in relation to gold prices.

While Australia was among the smaller volume oil exporters in 2009, throughout 2010 the AUD/USD was also positively correlated to oil prices, and then in September diverged.

Currency commodity relationships may change over time. Other currency commodity relationships can be found by looking for major producers of any export, as well as the major importers of the same commodity. The currency cross rate between the exporter and importer is worth looking at for a correlation with the commodity.

Deciding Which Instrument to Trade In

Upon knowing which currencies and commodities have strong relationships, traders need to decide which tradable currency pair they will make their trades in, or if they will trade in the commodity and currency. This will depend on several factors including fees and the trader's ability to access a given market. The charts show that the commodity is often the more volatile of the instruments.

If accessible, a trader may be able to trade the commodity and currency pair from one account due to the widespread use of commodity contracts for difference (CFDs).

Monitoring the Correlation for "Cracks"

It is also crucial to point out that just because a relationships exists "on average" over time, does not mean that strong correlations exists at all times. While these currency pairs are worth watching for their high correlation tendencies towards a commodity, there will be times when the strong correlation does not exist and may even reverse for some time.

A commodity and currency pair that is highly positively correlated one year, may diverge and become negatively correlated in the next. Traders who venture into correlation trading should be aware of when a correlation is strong and when it is shifting.

Monitoring correlations can be done quite easily with modern trading platforms. A correlation indicator can be used to show the real-time correlation between a commodity and a currency pair over a given period. A trader may wish to capture small divergences while the two instruments remain highly correlated overall. When divergence continues and the correlation weakens, a trader needs to step back and understand that this correlation may be in a period of deterioration; it is time to step to the sidelines or take a different trading approach to accommodate the changing market.

Figure 5 shows the weekly CAD/JPY as well as the correlation indicator (15 periods) comparing it to oil futures. Much of the time the indicator shows a strong correlation in the 0.80 area, yet there are times when the correlation falls off. When the indicator falls below a certain threshold (for example 0.50), the correlation is not strong and the trader can wait for the currency and commodity to re-establish the strong correlation. Divergences can be used for trade signals, but it should be noted that divergences can last for long periods of time.

The correlation indicator can be adjusted for the time frame a trader is trading on. A longer calculation period will smooth out the results and is better for longer term traders. Shortening the calculation period will make the indicator choppier but may also provide short-term signals and allow for correlation trading on smaller time frames.

Timing the Currency/Commodity Trade

Upon looking at the prior charts it is apparent that timing and a strategy is needed for navigating the fluctuating correlations between currencies and commodities. While exact entry and exit will be determined by the trader and will depend on whether they are trading the commodity, currency or both, a trader should be aware of several things when entering and exiting correlation trades.

Are the currency and commodity currently correlated? How about over time?

Does one asset seem to lead the other?

Is price diverging? Is one asset class making higher highs, for example, while the other asset class fails to make higher highs? If this is the case, wait for the two to begin moving together once again.

Use a trend confirmation tool. If divergences occurs, wait for a trend to emerge (or reversal) where the currency and commodity trend in their appropriate correlated fashion.

By monitoring correlations several trades could have been confirmed in the USD/CAD and oil markets over the time frame shown in Figure 6. While one could trade the pairs during correlated times, this particular time frame saw several divergences. As the currency and commodity realigned themselves, large trends developed. By watching for breaks in trend lines in both the commodity and currency, or by waiting for one asset class to join the correlation trend of the other asset class (marked by blue arrows), several large trends could have been captured. This is similar to watching for divergences in the correlation indicator and then taking a trade in a trending direction as the commodity and currency realign. The commodity, currency or both could be traded.

The Bottom Line on Trading Currency and Commodity Correlations

Correlations between currencies and commodities are not an exact science. Often correlations break down and may even reverse for extended periods. Traders must remain vigilant in monitoring correlations for opportunities. Correlation indicators or monitoring charts are two ways of completing this task. After divergences, waiting for the commodity and currency to align in their respective trends can be a powerful signal - yet traders must accept that divergences can last a long time. Relationships may change over time as countries alter exports or imports, and this will affect correlations. It is also important that traders determine how they will make trades, whether in the currency, the commodity or both.

How To Trade Currency And Commodity Correlations

Correlations between the world's most heavily traded commodities and currency pairs are common. For example, the Canadian dollar (CAD) is correlated to oil prices due to exporting, while Japan is susceptible to oil prices because it imports most of its oil. Similarly, Australia (AUD) and New Zealand (NZD) have a close relationship to gold prices and oil prices. While the correlations (positive or negative) can be significant, if forex traders want to profit from them, it's important to time a "correlation trade" properly. There will be times when a relationship breaks down, and such times can be very costly for a trader who does not understand what is occurring. Being aware of a correlation, monitoring it and timing it are crucial to successful trading based on the inter-market analysis provided by examining currency and commodity relationships.

Deciding Which Currency and Commodity Relationships to Trade

Source: TD Ameritrade

Currency commodity relationships may change over time. Other currency commodity relationships can be found by looking for major producers of any export, as well as the major importers of the same commodity. The currency cross rate between the exporter and importer is worth looking at for a correlation with the commodity.

Deciding Which Instrument to Trade In

Upon knowing which currencies and commodities have strong relationships, traders need to decide which tradable currency pair they will make their trades in, or if they will trade in the commodity and currency. This will depend on several factors including fees and the trader's ability to access a given market. The charts show that the commodity is often the more volatile of the instruments.

If accessible, a trader may be able to trade the commodity and currency pair from one account due to the widespread use of commodity contracts for difference (CFDs). (See How To Invest In Commodities for more on this topic)

Monitoring the Correlation for "Cracks"

A commodity and currency pair that is highly positively correlated one year, may diverge and become negatively correlated in the next. Traders who venture into correlation trading should be aware of when a correlation is strong and when it is shifting.

Monitoring correlations can be done quite easily with modern trading platforms. A correlation indicator can be used to show the real-time correlation between a commodity and a currency pair over a given period. A trader may wish to capture small divergences while the two instruments remain highly correlated overall. When divergence continues and the correlation weakens, a trader needs to step back and understand that this correlation may be in a period of deterioration; it is time to step to the sidelines or take a different trading approach to accommodate the changing market.