Best Thread Correlation Trading - Basic Ideas and Strategies
NVP
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Simple Strategies using the FXCORRELATOR Indicator :-
[reproduced from a recent question raised on another Forum]
Ok - I have written literally hundreds of strategies for using my indicator over the last 20 years or so.
However the primary use of this tool is to get traders onto :-
THE RIGHT CURRENCY PAIR(S)
AT THE RIGHT TIME
IN THE RIGHT PLACE
In other words the primary use of this indicator (and any FX strengthmeter) is to ensure traders are only focused on Currencies and related currency pairs with the highest probability of delivering winning trades.
Now there are many interpretations of this - just as there are infinite ways of determining what is a good trading signal or pattern - however in this article I will reduce the criteria to just seeking Pairs with strong trend signals for ease of discussion.
so heres my indicator on a pair that is demonstrating a strong trend .....(attachment 1)
ok lets remove the other currencies just leaving the Green USD and the Red GBP.....(attachment 2)
Better ? - ok if you read the guides published in the signature / links areas below and look at my videos on youtube you will know that the ZERO dotted line on the indicator chart is very important to my trading ......it tells me that any currency index ABOVE the zero is showing bull and strong for the Moving average being used (default 20ma here) and any index line BELOW the zero is showing bear and weak.
can you see how this immediately provides more information than just the dumb and humble yellow 20 MA line on the chart ?
not sure ?....see below and how we can identify the OPTIMUM and powerful situations when both currencies are showing Strength and Weakness at the same time ......(attachment 3)
In this simple strategy we should only consider looking for trades when the 2 currencies are on OPPOSITE sides of the ZERO ......as any other time the currencies are on the same side (either both Bull or both Bear) and NOT displaying strong enough BIAS to consider trading
from this basic benchmark a trader can begin to introduce their more familiar signals / patterns and other indicators that they use to trade the market. However by this simple method they will now be able to remove at least 50-60% of the 28 Currency pairs available to trade in the G8 and focus on the BEST opportunities.
This simple and basic Rule is the foundation of literally Hundreds of FXCorrelator trading strategies I have used over the last 20 years ...it is the building block for many i still use , alongside more traditional chart based patterns and indicators combinations
try it in any trend following strategy and see if it helps you start focusing on the pairs that are trending ....rather than your 2-3 favourite pairs (we all have them) that you trade continuously and follow signals loyally.....
REMEMBER THIS
when you decide to trade a currency pair without consulting the Fxcorrelator there is only a 27/1 chance you are trading the best signal .......do you really want to take that risk ?
More Strategies using the FXCORRELATOR Indicator :-
I have spent the last 20 years trading systems based on this indicator and its derivatives ......please visit the signature / Links page below on this thread to see the many resources available and the Free indicators , advice and consulting i have provided.
People that know me will tell you I am a Successful independent Trader and Business consultant who choses to provide commercial FX training at times based on demand from traders that have profited from the multitude of free training material, indicators and articles I have published in the last 15 years.
I hope you enjoy the indicator and this Thread together with my associated Free website / Blog .....please do not hesitate to contact me if you have any questions and i look forward to perhaps talking one day ......
Best Regards and wishing you a successful trading career.....
Neil
NVP
[reproduced from a recent question raised on another Forum]
Ok - I have written literally hundreds of strategies for using my indicator over the last 20 years or so.
However the primary use of this tool is to get traders onto :-
THE RIGHT CURRENCY PAIR(S)
AT THE RIGHT TIME
IN THE RIGHT PLACE
In other words the primary use of this indicator (and any FX strengthmeter) is to ensure traders are only focused on Currencies and related currency pairs with the highest probability of delivering winning trades.
Now there are many interpretations of this - just as there are infinite ways of determining what is a good trading signal or pattern - however in this article I will reduce the criteria to just seeking Pairs with strong trend signals for ease of discussion.
so heres my indicator on a pair that is demonstrating a strong trend .....(attachment 1)
ok lets remove the other currencies just leaving the Green USD and the Red GBP.....(attachment 2)
Better ? - ok if you read the guides published in the signature / links areas below and look at my videos on youtube you will know that the ZERO dotted line on the indicator chart is very important to my trading ......it tells me that any currency index ABOVE the zero is showing bull and strong for the Moving average being used (default 20ma here) and any index line BELOW the zero is showing bear and weak.
can you see how this immediately provides more information than just the dumb and humble yellow 20 MA line on the chart ?
not sure ?....see below and how we can identify the OPTIMUM and powerful situations when both currencies are showing Strength and Weakness at the same time ......(attachment 3)
In this simple strategy we should only consider looking for trades when the 2 currencies are on OPPOSITE sides of the ZERO ......as any other time the currencies are on the same side (either both Bull or both Bear) and NOT displaying strong enough BIAS to consider trading
from this basic benchmark a trader can begin to introduce their more familiar signals / patterns and other indicators that they use to trade the market. However by this simple method they will now be able to remove at least 50-60% of the 28 Currency pairs available to trade in the G8 and focus on the BEST opportunities.
This simple and basic Rule is the foundation of literally Hundreds of FXCorrelator trading strategies I have used over the last 20 years ...it is the building block for many i still use , alongside more traditional chart based patterns and indicators combinations
try it in any trend following strategy and see if it helps you start focusing on the pairs that are trending ....rather than your 2-3 favourite pairs (we all have them) that you trade continuously and follow signals loyally.....
REMEMBER THIS
when you decide to trade a currency pair without consulting the Fxcorrelator there is only a 27/1 chance you are trading the best signal .......do you really want to take that risk ?
More Strategies using the FXCORRELATOR Indicator :-
I have spent the last 20 years trading systems based on this indicator and its derivatives ......please visit the signature / Links page below on this thread to see the many resources available and the Free indicators , advice and consulting i have provided.
People that know me will tell you I am a Successful independent Trader and Business consultant who choses to provide commercial FX training at times based on demand from traders that have profited from the multitude of free training material, indicators and articles I have published in the last 15 years.
I hope you enjoy the indicator and this Thread together with my associated Free website / Blog .....please do not hesitate to contact me if you have any questions and i look forward to perhaps talking one day ......
Best Regards and wishing you a successful trading career.....
Neil
NVP
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NVP
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morning all....and april fool !!!
anyway no fooling around this morning ....good bullish start to GBP so far ......
ive been scalping cable up from the mid 3050 levels....up to 3080 so far
cable is back at good rebuy levels ....3055/56 ...get ready for rebuys
yen and NZD are the main sellers at moment ....but not really interesting to me
N
anyway no fooling around this morning ....good bullish start to GBP so far ......
ive been scalping cable up from the mid 3050 levels....up to 3080 so far
cable is back at good rebuy levels ....3055/56 ...get ready for rebuys
yen and NZD are the main sellers at moment ....but not really interesting to me
N
NVP
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hi gang .....sorry been in meetings alongside some scalping
Ok ive been selling GBP most of morning ........it is as usual the most volatile currency london session by miles ....so why trade anything else ?
anyway ive been selling Cable from 3060s down to 3030s so far ...2 good phases generating good pips
N
Ok ive been selling GBP most of morning ........it is as usual the most volatile currency london session by miles ....so why trade anything else ?
anyway ive been selling Cable from 3060s down to 3030s so far ...2 good phases generating good pips
N
NVP
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GBP is doing well this week so far ......the GBP index generated 120+ bull pips yesterday but is fading and now ranging
in fact ive been selling Cable london session today ......
lets see where the red GBP index goes next ......green USD also having a bull week so far ....so that has made Cable a little less profitable when we bought it yesterday
yellow JPY has been a solid sell so far .....
N
in fact ive been selling Cable london session today ......
lets see where the red GBP index goes next ......green USD also having a bull week so far ....so that has made Cable a little less profitable when we bought it yesterday
yellow JPY has been a solid sell so far .....
N
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NVP
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ok a little scrappy his afternoon.........im still reselling Cable .....been attacking off the 3040's down to 3020s so far last few hours .............hard work but still on selling GBP...
NZD has also been bear mainly.....and CAD also dropped recently .....
USD and Yen solid bulls so no questions on those guys to buy
N
NZD has also been bear mainly.....and CAD also dropped recently .....
USD and Yen solid bulls so no questions on those guys to buy
N
NVP
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ok GBP got hit hard and finally came back into bull territory from its gains yesterday .....
around 5.30 GMT for me the game changed
around 3070 i got back in cable bull saddle .....cable been to 3120 so far
cad , AUD,NZD the bears now .....
Cable index is back around +100 pips for week so far ...it was pretty much back at Zero earlier
volatility .com
N
around 5.30 GMT for me the game changed
around 3070 i got back in cable bull saddle .....cable been to 3120 so far
cad , AUD,NZD the bears now .....
Cable index is back around +100 pips for week so far ...it was pretty much back at Zero earlier
volatility .com
N
NVP
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NVP
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hey all
ok this morning i had a lot of calls regarding some small business consulting i am involved with
i have been dipping in and out .......
GBP was an early Bull London but has now sold off......
cable had a real pivot level around the 3107 price.....i did try to scalp getting up to 3118 at times but have recently faired much better selling down to 3040s so far .......no complaints
only cad and NZD re also selling off.......rest of g8 are Bulls
N
ok this morning i had a lot of calls regarding some small business consulting i am involved with
i have been dipping in and out .......
GBP was an early Bull London but has now sold off......
cable had a real pivot level around the 3107 price.....i did try to scalp getting up to 3118 at times but have recently faired much better selling down to 3040s so far .......no complaints
only cad and NZD re also selling off.......rest of g8 are Bulls
N
NVP
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Hey all......
interesting week .........RED sterling got big by mid week .......+ 150 pips from Monday opens....then came off hard
Yellow Yen was the only bear of any size.....but - 100 pips is hardly sizable move off a weeks activity ......E/J produced a few pips but everything paled to the power of the GBP pair profitability
I chased cable up for 3 days then chased it down for 2 days ...........that paid the bills for the week !
have a good one gang .....
N
interesting week .........RED sterling got big by mid week .......+ 150 pips from Monday opens....then came off hard
Yellow Yen was the only bear of any size.....but - 100 pips is hardly sizable move off a weeks activity ......E/J produced a few pips but everything paled to the power of the GBP pair profitability
I chased cable up for 3 days then chased it down for 2 days ...........that paid the bills for the week !
have a good one gang .....
N
