Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

hey all

long long few weeks as my consultancy work keeps me away from scalping much (although i am working with a group on some interesting research).....will try to get more to screens in next few weeks

N

 

[NVP]

meanwhile heres my FXcorrelator on a 60 setting for 1 hr .......this is middle timeframe analysis ..lets us see where the potential was for triggering scalps on 5 mins

last week started wth a very bull blue euro so all eyes would have been on trying to buy into it ...a little choppy but it did roll back north before fading midweek

Red GBP was the main bull play all week eh ? .......see how it came up from tuesday and kept running ?

yellow yen opened bear and was sold off again early week

only Brown Cad really took pain as well ......

Turqiose NZD offers sells early week

by mid week it was pretty flat eh ?..........tough to make a buck iver last 2-3 days unless you caught some GBP bull or the Cad bear moves

N

 

[NVP]

forex flakey today with holidays in europe......

yen selling london .........aud showing main bull on G6......not surprising that european currencies not moving much

usd falling now steadily but sloooooow.........

Scalp wise....

a little EA selling , AU buying , i didnt go GU buys as the trend is generally south on that one for me ........a little EJ buying

but as stated sloow today

N

 

[foroom lluzers]

Good video

But also someting wrong with this

Planning and executing involve different skills that draw upon different parts of the brain. Planning the trade is largely a function of your intellect, the prefrontal cortex PFC. You create your plan in a relatively calm state of mind with your PFC in charge. But when it comes time to execute the plan, other areas of your brain will become involved.

There should be a execution plan , and a plan to execute under stress , emotions etc.To execute the plan , one needs to control the brain and have a plan to control .When executing the brain is in a state of uncertainty ,emotions (your emotional brain is faster and doing the execution) , stress response with reactive stress patterns.

This is what professional psycholosists say and professional traders have experienced.

 

[NVP]

heres Jack Crook and the gang ........

http://www.blackswantrading.com/blo...nst-the-dollar-i-dont-know-but-willing-to-bet

aside from a few interesting observations on AUD , CAD and USD the main point i like in his blog is that

My editor’s note is this: I realize correlation isn’t causation. I realize correlations can change at any moment because every moment in the market is unique. I realize it isn’t always easy to determine which variable leads and which follows in a seeming correlation; it may be neither as both may be driven by some other narrative/variable/rationale, etc. But sometimes divergences in prior correlations which have stood for a while can represent nice setups for a winning trade.


that sums up my entire approach to trading Currency Strengthmeters and Forex correlation patterns (for over 16 years now) ........sometimes patterns occur that have a very high % probability of producing profits

its that simple ......

N

PS ive taken a look on my charts at CAD , AUD and usd in last 10 years ........to me ...sure CAD and AUD are generally moving in same direction ......but to me I dont care about that ........look at the rise of the Greenback .........thats much more important a pattern and selling other currencies into it .............sure Cad and AUD in 2015 for the sells...but certainly not in 2016/2017 .....I GUARANTEE that other currencies will be better to sell that these Commdolls ...........*

 

[NVP]

all about selling AUD in this mornings london market ........nice solid moves to -20's pips

Euro coming bear,cad the main bull , usd after a nice early bull run is fading

a few scalps around .......seen better mornings

N

 

[NVP]

morning all

a rare chance for me to scalp this morning...........

euro has been bear ......GBP and cad got bullish ......usd greenback slowly betting bear

not too much to get excited about then ......a little GU buying and ucad selling ........and some ealier EU selling

but nothing to get excited about so far

have a good one
N

 

[NVP]

hey all

morning fairly quiet from 6am .....euro a tad livelier but not surprising

Euro and GBP been out to +20 pips from 6am so far
yen and Cad sold to -20's
usd is flat/bearish

sooo.........a few pips on the obvious pairs so far for me following above ......on the triple corrie indicator at bottom of screen (available for free from me)..you can see the GBP is the main bull across the TF's (3 arrows north)......and the AUD is the alpha bear (3 arrows south)...so ive had no issues buying gbp today into signals .....usually on the gu

cheers
N

 

[NVP]

hey all

what a steady morning session .........USD is Bull from London starting gate and has put on 20 pips in last 2 hours........... euro , AUD and Yen all visited the -10 pips in that time offering some nice scalps

the Greenback is showing triple arrows on 3 higher timframes as well so Solid bull (See lower chart)

wish every morning was like this
N

 

[NVP]

anyone been on the UJ for last day or so ........what a move !!

it took off around 10 am yesterday ......yen and USD have shared the 150+ approx. pips equally ...classic trade ......most pair trades we have to take are pretty one sided with usually only 1 of the currencies providing the volatility (like yen or GBP normally).....usd has had a great bull run last day or so ....

N

 

[NVP]

morning all

a quick look at the week so far on a strengthmeter G8 currencies

Greenback has had a great week .........smoothly out to the +100 pip mark now .....will it hold friday ?.............how do i know ? ......Turquoise NZD has been active as well earlier in week

the Grey Swissie , Yellow Yen and Blue Euro have been the sellers so far .........although the yen is now back to opening levels .....Swissie has held dog spot still at moment

how have you been doing this week ....ok ? .........that Greenback smooth run bull to tuesday evening will have put a lot of money in many traders pockets if they were selling euro and swissie .............lets see if the nerves hold today or if many of those positions get closed

have a good one
N

 

[NVP]

so heres 2 parts of the triple corri standard setting

the 240 on a 1hr and the 60 on a 1 hour .remember the 5min on a 60ma is the trigger signal (not shown)

so what was showing in the week to watch for ? (so needs to be on same side both charts)

BUYS (on or by late monday) - GBP,NZD,USD,CAD
SELLS - YEN , CHF,
NO SIGNAL (both sides on different charts) - EURO,AUD

so the message was clear as we only had 2 candidates to sell.......although AUD dropped into a sell tuesday asian .......

so they were the plays early week gang ........sell yen and swissie in pairs ....and cherry pick the best signals from 5min TF........

that easy ? .....well nothing in trading is as easy as claimed.......but surely this gives you a heads up ?

yes ?...no ?

have a good day in the markets .....I will
N

 

[NVP]

morning all .......

i got a couple of hours to scalp this morning ........

from around 6am this is how the currencies have gone ....

turquiose NZD and Yellow yen have been the main bull plays ...yellow yen gotto around 30+ pips from 6am so far .......so they were my prime focus on buys in scalps

lots of early sellers in G8 .......then green usd and red gbp escaped the pack .........so those 2 for me have been the prime sells in scalping activity

sure theres a few other rules inbetween ......but most traders make scalping toooo sophisticated ........its tooo fast a game for sitting on fences .....believe me


capishe ?
N

 

[NVP]

hows it going ?.........how did you do this trading week ?

heres the G8 from sunday night

yellow yen and blue Euro have been the buys gang .......yen got over +150 pips north yesterday

plenty of sellers .....look at how solid the green usd sells have been all week so far until yesterday ..........are we seeing a rally today ?....hmmmm

aussie twins both solid sells as well .........cad and gbp south and making more volatile swings inbetween.....(as they always do in the G8)

so best trading pairs this week ? ...well using the aussies and usd as sellers was smart ......and just riding the euro and the yen whenever t bounced north

its not rocket science ......you just have to have the right way of looking at things for the bigger picture and the signals that come

good trading
N

 

[NVP]

morning all

light action this morning london so far ..........i cant get any currency outside the +/- 12-13 pip barrier

yellow yen only one showing promise on bear side ..........

3 ducks (lower chart) showing a few currencies lined up for trend trading...........yen is a sell so i will follow it if it breaks ........UJ EJ will be watched ............

ok have a good one
N

 

[NVP]

morning all

light action this morning london so far ..........i cant get any currency outside the +/- 12-13 pip barrier

yellow yen only one showing promise on bear side ..........

3 ducks (lower chart) showing a few currencies lined up for trend trading...........yen is a sell so i will follow it if it breaks ........UJ EJ will be watched ............

ok have a good one
N

yen nudging small scalps on EJ and UJ as stated in last email ..but still flaky and i have to be elsewhere soon

have a good day
N

 

[KhaosTrader]

Hi NVP,

I am really liking the triple corrie.. I want to use it to trade higher timeframes, so I was wondering how i can set a daily timeframe, I tried 1440 for minutes (for 1 day) and it didnt like it.

I want to have it 60 240 1day...

Kindly tell me how to put in the settings for that.

Thanks again!

yen nudging small scalps on EJ and UJ as stated in last email ..but still flaky and i have to be elsewhere soon

have a good day
N

 

[NVP]

Hi NVP,

I am really liking the triple corrie.. I want to use it to trade higher timeframes, so I was wondering how i can set a daily timeframe, I tried 1440 for minutes (for 1 day) and it didnt like it.

I want to have it 60 240 1day...

Kindly tell me how to put in the settings for that.

Thanks again!

hey there

someone else asked about this - i do have a version somewhere that allows you to do any 3 timeframes and any ma settings .............

let me try and find it ....i will post it here soon :smart:

N

 

[NVP]

morning all

market warming up nicely like the weather ........

london opens from 6am

red gbp braking south , and yellow yen breaking north .......my favourite and predictable correlation pattern.............green usd is steady eddie sells so far ...........

europeans all bear ..........aussies bull ...today is textbook correlation trading patterns ...although I would prefer the usd and yen to be in same direction

ok trade what you see ..........yen is backed up by a triple arrow corrie...second chart screen .......gbp is a sold sell as well ............

have a good day
N

 

[NVP]

dramatic moves in last 10 mins ....gbp looks solid as sell.usd has broken north , now fading again

fast and furious like i like it !!!

N