Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Sounds like a similar style to what I've been doing - just the price and no indicators. I was thinking it would be a good signal to get in on a trade when the corrie is signalling and when there's a big candle going in the same direction, where 'big' is larger than the ATR for that timeframe.

Edit: just realised I'm giving the impression I'm trading off the Corrie - which I'm not - yet

Hi Gang

anything you are playing with that you want to share just put it up on the thread with some charts........and we can all perhaps chew the cud

N

 

[forexkunta]

Jees - The USD has been phenomenally weak now since early June and Kent looks indeed correct on its recent climb thru August just being a hiccup on its frightening journey further south.........

Actually, Neil, I was talking about the chance to make more pips on GBPUSD, on that statement. I see more strength on the USD going forward. Wave 1 and 2 has completed, with wave 3 in progress to the upside, with quite a ways to go before the move up is complete. I am referring to the USDX. Cable should be in a good downtrend for a while.
Kent

 

[NVP]

Actually, Neil, I was talking about the chance to make more pips on GBPUSD, on that statement. I see more strength on the USD going forward. Wave 1 and 2 has completed, with wave 3 in progress to the upside, with quite a ways to go before the move up is complete. I am referring to the USDX. Cable should be in a good downtrend for a while.
Kent

Hi Kent

heres why trading is so fascinating and newbies sometimes wonder why prices are available when to them they just cant believe someone would be stupid enough to accomodate their cert "Trade"

I can certainly see your reasons for a continuation of USD up now although on this 4h chart I see its fallen below the previous Low so a little unsettling...and GBP certainly looked prime for a little further falls if imminent support levels were breached....

everyone - can you see how higher MA settings (regardless of TF) on the FXcorrelator allow much more sophisticated analysis of currency behaviour than the lower MA's and simple crossover signals ?)

N

 

[Adamus]

everyone - can you see how higher MA settings (regardless of TF) on the FXcorrelator allow much more sophisticated analysis of currency behaviour than the lower MA's and simple crossover signals ?)

In my opinion, the waves on long-term MA are caused by macro-economic factors - e.g. GDP in China.

On the medium term MA, it's all about what the central banks are doing and the price of gold etc

And on the fast MAs, it's all about when the dealers at Deutsche Bank and Citi go for a coffee break

 

[Adamus]

anything you are playing with that you want to share just put it up on the thread with some charts........and we can all perhaps chew the cud

I still haven't got the FX Correlator yet! Despite several statements of intent. Where's the best place to get the algorithm - or is that a closely guarded secret?

 

[NVP]

I still haven't got the FX Correlator yet! Despite several statements of intent. Where's the best place to get the algorithm - or is that a closely guarded secret?

its incredibly guarded and a secret

Or you could just drop into my signature box below and check out the links - all will be revealed

N

 

[NVP]

In my opinion, the waves on long-term MA are caused by macro-economic factors - e.g. GDP in China.

On the medium term MA, it's all about what the central banks are doing and the price of gold etc

And on the fast MAs, it's all about when the dealers at Deutsche Bank and Citi go for a coffee break

just tell me when..........I must be getting the timing wrong on these !......LOL

N

 

[payroll]

Best trade from early this morning to now has been EURGBP via 1hr FXCORRie - +76 pips, traded off the 15m tf

 

[NVP]

Best trade from early this morning to now has been EURGBP via 1hr FXCORRie - +76 pips, traded off the 15m tf

thats an interesting call payroll.....

can you share the chart / signal / MA with us ?

here it is ridden on my standard 20ma the scalper setting.....see how they both duck and dive across the Zero a lot ?

however since the currency lines never ever crossover themselves through this extended period there will be a net accumulation of pips by selling GBP and buying euro (ie a EURGBP buy) which was 70-80 pips at its peak....

nice call but clearly this means you are using slightly different extended rules on my Scalper (?) and you are letting the trade run unless the Currencies crossover I suspect.....or you are using a higher MA to smooth it more ....which is actually a nice approach I am considering more and more as 20ma is a very fast dude !

Breaches of Zero on either currency are useful in this system....as long as the currencies dont crossover you stay in the trade , but each time a Zero Breach happens (and the currencies are on the same side of the Zero) use this as a warning and reset your S/L position to an appropriate position on the main pair chart ....its just a signal that the trade may be coming to an end so you tighten up)

nice trade anyway...and actually the GBP's bearish volatility yesterday provided some nice trades on other currencies as well - although you managed to pick the only currency (EUR) that was not crossed back over on GBP's bullish moves up though the trading day ......10/10 !

N

 

[payroll]

Hi NVP,

Here is the trade.

 

[payroll]

I remove alot of the noise and look at pairs by themselves, after the first glance of the group!

 

[payroll]

The FXCorrie works great on the daily charts, the divergence stands out like a sore thumb!

 

[payroll]

Sorry, bad trendline placement!

 

[payroll]

Corrected!

 

[forexkunta]

Looking like another move down on Cable.

 

[NVP]

Corrected!

nice charts

be careful on the convergence plays on low Ma levels (such as 14ma and 20ma)...at these low levels the lines will converge quite persuasively back towards the zero - even when the actual currency is only slowing in real time speed and moving flattish

the Zero crosses for me are the big signals....but then we all interpret signals differently

great stuff
N

 

[NVP]

Looking like another move down on Cable.

Hey kent

would love to be playing ball today - but work is stupidly busy as usual........

Trade long (or short) and prosper !
N

 

[forexkunta]

I understand, just looking at the market before I hit the shower and go to the office. Fortunately, I have a job that allows me to keep an eye out and place trades when they pop up, most of the time. I use an EA for instant trailing stop loss, so I can place a trade and walk away.

Hey kent

would love to be playing ball today - but work is stupidly busy today ...........

Trade long (or short) and prosper !
N

 

[payroll]

nice charts

be careful on the convergence plays on low Ma levels (such as 14ma and 20ma)...at these low levels the lines will converge quite persuasively back towards the zero - even when the actual currency is only slowing in real time speed and moving flattish

the Zero crosses for me are the big signals....but then we all interpret signals differently

great stuff
N

You’re 100% correct NVP, :smart: lower ma’s react a lot faster, but that’s where ob/os levels are important on the FXCORRie, as sideways markets will show (Zero line) better than anything I’ve every used before! Other tools are needed such trendlines and TL breaks, SR levels, pivots on your charts and FXCORRie, but the major tool used is the human eye!

 

[NVP]

You’re 100% correct NVP, :smart: lower ma’s react a lot faster, but that’s where ob/os levels are important on the FXCORRie, as sideways markets will show (Zero line) better than anything I’ve every used before! Other tools are needed such trendlines and TL breaks, SR levels, pivots on your charts and FXCORRie, but the major tool used is the human eye!

Hey Payroll,

sounds like you have it working well here

good hunting
N