Best Thread Correlation Trading - Basic Ideas and Strategies
NVP
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cable offered a nice move again about an hour ago for resells .....took from 3080s back down to 3070s
cant persuade ucad to sell so far ......but im generally swinging these 2 pairs against each other .....GBPCAD is obviously a better option but i dont trade those levels of spread when scalping .....
N
cant persuade ucad to sell so far ......but im generally swinging these 2 pairs against each other .....GBPCAD is obviously a better option but i dont trade those levels of spread when scalping .....
N
NVP
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in FX its currency indexes that drive the performance of currency pairs (although 99% of traders only ever look at currency pairs the other way around)
so when a Currency index like GBP for example is showing a Support or resistance level ......that will generally indicate most of its currency pairs are doing the same thing
the time it is not happening is because one or both of the currency indexes are doing different things
so when a Currency index like GBP for example is showing a Support or resistance level ......that will generally indicate most of its currency pairs are doing the same thing
the time it is not happening is because one or both of the currency indexes are doing different things
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NVP
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hey all
been a busy week for me but sometimes focused on other projects
the G8 this week have been pretty quiet in truth ....nothing got even near 100 pip Bull/Bear divergence from monday zero baselines
plenty of currencies took turns hitting alpha highs and lows......
CAD , GBP and then Euro were the main bulls at times
USD , CHF and Yen were the main bears
hopefully more lively next week
N
been a busy week for me but sometimes focused on other projects
the G8 this week have been pretty quiet in truth ....nothing got even near 100 pip Bull/Bear divergence from monday zero baselines
plenty of currencies took turns hitting alpha highs and lows......
CAD , GBP and then Euro were the main bulls at times
USD , CHF and Yen were the main bears
hopefully more lively next week
N
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NVP
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morning all ......dead session so far ...cant get anything really moving ....typical monday
yen and usd been pretty neutral really.....euro looking Bull at times ....GBP , CAD and NZD been bear also
when the NZD and or AUD are big players in any session thats a nono for me .....they are C class celebrity currencies...... meaning its pretty ropey out there !!
yen and usd been pretty neutral really.....euro looking Bull at times ....GBP , CAD and NZD been bear also
when the NZD and or AUD are big players in any session thats a nono for me .....they are C class celebrity currencies...... meaning its pretty ropey out there !!
NVP
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scalping this morning for a while ....then a little tied up later on trader calls and some consulting
promising bear action on usd and yen early london......gbp bear so far as well
ive been tracking Cad and NZD, AUD Bulls for opportunities
ultmately im waiting for europeans to show their hands vs the Yen/USD action
GBP looking like it might come bull now ...im monitoring the 3060s zone on cable for patterns
watch this space
promising bear action on usd and yen early london......gbp bear so far as well
ive been tracking Cad and NZD, AUD Bulls for opportunities
ultmately im waiting for europeans to show their hands vs the Yen/USD action
GBP looking like it might come bull now ...im monitoring the 3060s zone on cable for patterns
watch this space
NVP
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hey gang ....well it took some time but my initial plays earlier today above were persued through the day
i got cable sells back again from 2950s.....down to 2930s so far ...i missed the heavy selling from 3010 levels unfortunately
UCAD ive been working from 3370s to 3430s so far ...great run
N
NVP
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hi there here it is ........
heres link to T2win thread on it
https://www.trade2win.com/threads/c...s-and-strategies.71854/page-1414#post-3035670
see the next post as well for a simple way to use it
N
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NVP
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Simple Strategies using the FXCORRELATOR Indicator :-
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 .....
(See attachment cable 1)
ok lets remove the other currencies just leaving the Green USD and the Red GBP.....
(See attachment cable 2)
Better ? - ok if you read the guides published above 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 ......
(See attachment Cable 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 FXCorrleator 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 ?
N
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 .....
(See attachment cable 1)
ok lets remove the other currencies just leaving the Green USD and the Red GBP.....
(See attachment cable 2)
Better ? - ok if you read the guides published above 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 ......
(See attachment Cable 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 FXCorrleator 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 ?
N
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