(only for serious intra-day Traders) Thread 🧵 How I use BTC correlation when trading Alts on the 1 minute timeframe I will cover: • Correlation Coefficient • How I measure correlations (with examples) • Practical Tip that you can use today to take better trades (1/n) ↓
(2/n) Correlation Coefficient A common way of measuring correlation is the "Correlation Coefficient" indicator on TradingView. I've used this in the past but I have often found 2 big problems with it: Problem 1) • sometimes the CC (correlation coefficient) shows a high
(3/n) My way of measuring the correlation between BTC and an Altcoin There are a few variables I am comparing between the Altcoin and Bitcoin: 1) The "timing" of each Intra-day Reversal (blue/red lines). • If both the alt and btc are turning around at roughly the same time,
(4/n) Low Correlation Example In the example below, the 3 variable I spoke about are not in sync. The Altcoin is not "following" BTC's price action and is not too heavily impacted by it. This is a sign of "low correlation". 1) The "timing" of Reversals: • the alt and btc are
(5/n) Cheat Sheet for how to use Correlations in Intraday Trading
(6/n) Practical Tip that you can use today to take better trades Quick context: • One of the strategies I like to trade is the "Fast Spike Reversal". If I happen to get a "fast spike" into a level, the first immediate thing I MUST do before considering to take the trade is
(7/n) If you found this useful, just copy Pepe the frog. ↓
