Best Thread Correlation Trading - Basic Ideas and Strategies

[Dentalfloss]

 

[Dentalfloss]

 

[Dentalfloss]

 

[NVP]

morning all ...

usual patterns this morning so far london ....yen and GBP being the alpha currencies in opposite directions

I have been working GBP north based on first few hours of clues (and my FXCorrelator)......and selling yen into pairs

massive 30+ pip bear correction on GBP last few minutes .....so market is a little neutral for me at present

 

[NVP]

nice rebounce on GBP trades back into london trend

 

[NVP]

real average today ....only yen bear has been fairly consistent .......done ok but cable is very rangy / flakey

 

[Dentalfloss]

 

[Dentalfloss]

Updated

 

[Dentalfloss]

Dxy was hot...Bounced off our support
Crosses went with it

 

[NVP]

scrappy london morning so far .....not much breaching of +/- 10 pips area from 6am..... so its hard to get a lot of pips running as yet ......ive mindlessly chased Cable as is my achilles heel and as you can see red GBP is rollercoastering as usual ....

taken 1 cable bull scalp in 2850s for a handful and a nice sell in 2850's as well for a decent scalp haul to 2830s.....dont ask....... its a risky strategy in truth with on the face of it no concept of market structure .......but i do have some pretty good trigger systems that sit off of my core fxcorrelator directional work so I'm probably a lot more ok than it seems .....

so far technically i would not have let any inexperienced scalpers trade at all as its too slow .......

when GBP goes it really goes..... so im more allowable of the reversal plays at moment given the volatility of that beast .....

in truth Yens bear action looks a safer play .....cant go too wrong playing Yen into Euro most of the time ...so this morning rebuying EJ in 120.60s has done ok so far .....

just remember that GBP and Yen rarely spend quality correlation time together .....they on opposite polls normally .....I use that a lot in some strategies .....

N

 

[NVP]

2837/8 watching for resell opp

 

[NVP]

heres the G8 Forex week so far ......ive used a 50ma FXCorrelator to smooth things a little.....alongside my upper fixed chart from monday opens........

10/10 for those buying CAD and NZD into GBP and the more solid bear CHF.......GBP offered best swing of the week from bull to bear from mondays highs ......no surprises for its volatility

N

 

[Dentalfloss]

Bulls need 1.2850 as support

 

[Dentalfloss]

 

[Dentalfloss]

DXY in support
will it get bought.?

 

[gka]

Hi NVP thank you for all your analysis posts.

Thought you might be interested in what the VRM is saying about the GBP.

VRM described in first post of the thread " Predicting future FX support and resistance levels using mathematics"

I attach the VRM charts for GBPUSD, GBPJPY and GBPCAD for the week starting 21st October. Coloured levels are the important levels. In all three the top of the short term channel is reaching the top of the long term trend channel. Get ready for some volatility and reversals.

Let's see what the week will bring

View attachment 268866

View attachment 268867

View attachment 268868

For the week starting 21st October I posted the above VRM charts for GBPUSD, GBPJPY and GBPCAD predicting volatility and reversals. Reversals and volatility happened as the prices hit the tops of their respective VRM long term trend channels.

For the record I attach GBPUSD, GBPJPY and GBPCAD charts for this week 28th October, showing the volatility and reversals for last week.

 

[Dentalfloss]

DXY in support

 

[Dentalfloss]

Dollar in rez

 

[NVP]

sorry guys been tied up ...will try to get to table tomorrow ....N

 

[NVP]

For the week starting 21st October I posted the above VRM charts for GBPUSD, GBPJPY and GBPCAD predicting volatility and reversals. Reversals and volatility happened as the prices hit the tops of their respective VRM long term trend channels.

For the record I attach GBPUSD, GBPJPY and GBPCAD charts for this week 28th October, showing the volatility and reversals for last week.

View attachment 269163

View attachment 269164

View attachment 269165

interesting stuff GKA ......I do a lot of work like this on Indexes .....mainly because I look for the big plays and then pick from that particular Currencies stable of pairs

N