What is that? How does that help us and what can we do about it?
The most prominent example of intermarket correlation is the relationship between gold and USD. When one goes up, that means that the other one is going to go down and vice versa. This in fact can be really helpful because knowing the correlation between the movements gold and USD-driven couple we can see the movement of one chart by not even having to look at it.
What can we do about it?
Well, what can we do about the ways markets are operating? That’s right – nothing. We can do exactly nothing with intermarket correlation other than to put it down for our profits. It is just the way market relations have formed over the years. That is just it.