Simple High Probability Forex Trade Areas Trading Strategy with Currency Correlation Indicator

High Probability Forex Trade Areas – You can trade this method on any timeframe and on any currency pair. This also works on non-Forex charts, so if you trade Oil or Gold, you are still good.


Levelator Indicator


The Levelator will give us levels in which we can:

  1. Buy or sell.
  2. Place a stop loss.
  3. Place a take profit order.

By default, the Levelator will look to identify the lowest low and the highest high over the last 100 candles and then connect them.

Once a high and a low has been identified, the Levelator will draw 6 equally spaced levels or zones between the high and the low.

  • If the market has been moving upwards, the zones will be colored Orange.
  • If the market has been moving downwards, the zones will be colored Blue.

At each line that separates the sections, you will see a yellow number. This is the number of pips the current market price is away from these levels. These numbers will continually change as the price of the market changes.


Currency Correlation

In the financial world, correlation is a statistical measure of how two securities move in relation to each other.

Recommended Article:  High Accuracy USDJPY Daily Technical Trading System & Strategy

Currency correlation, then, tells us whether two currency pairs move in the same, opposite, or totally random direction, over some period of time.

When trading currencies, it’s important to remember that since currencies are traded in pairs, that no single currency pair is ever totally isolated. (Did we just confuse you with our “currencies” tongue-twister sentence there?)

Unless you plan on trading just one pair at a time, it’s crucial that you understand how different currency pairs move in relation to each other, especially if you’re not familiar with how currency correlations can affect the amount of risk you’re exposing your trading account to.


If you don’t know what the heck you’re doing when trading multiple pairs simultaneously in your trading account, you can get KILLED! Murdefied! Destroyed! We can’t stress this enough.

Correlation is computed into what is known as the correlation coefficient, which ranges between -1 and +1.

  • Perfect positive correlation (a correlation coefficient of +1) implies that the two currency pairs will move in the same direction 100% of the time.
  • Perfect negative correlation (a correlation coefficient of -1) means that the two currency pairs will move in the opposite direction 100% of the time.
  • If the correlation is 0, the movements between two currency pairs is said to have uh ZERO or NO correlation, they are completely independent and random from each other. We have no idea how one pair will move in relation to the other.
Recommended Article:  Forex H1- H4 High Accuracy Trading System with Trendisimo Custom Indicator

This is a nice little system with very defined entry and exit rules. Try it out, it has about a 60%-80% win ratio if you are trading with the direction of the trend as determined by the 2ColorMA, Signal Bars, and H4 SSL Indicators.

Leave a Reply

Your email address will not be published. Required fields are marked *

Powered by: ForexWOT Trading System
Privacy Policy    e-Mail: