Quote:
Originally Posted by mystikdragon7
Is there a K-wave (or also known as the Kondratieff Wave) type of theory for the forex market? The K-wave is an analytical theory of the economies in correlation to the stock market. There is a graph that shows three major trends over several decades in the stock market, when to buy, when to sell, and when there is panic.
I have been thinking about opening a few long term trades in the near future. Now I'm wondering if there is a similar type of theory/graph to the forex market.
Does anyone know of any such thing?
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Hmm, not that I know of. There isn't (in my opinion of course) too much of a strong correlation between stock markets and the currency markets. In the forex market its' the "big picture" that matters, and in many cases the performance of a specific country's stock market may not necessarily have an effect on its currency. Take for example the USD. When the Dow or Nasdaq or whatever stock market tanked, why didn't the USD follow? There is an answer to that, but my point is that the correlation is not strong between currencies and stocks.
Now as far as a K-Wave equivalent for the forex markets, I think the nearest thing could be the SSI (speculative sentiment index) indicator. Do a bit of research into that. It is my understanding that SSI can be applied to any financial market not just currencies though.
The K-wave
..loool
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