Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Hi all

lunchtime check..........

the US30 futures is still trying to fall....its around the mid july levels and if the 10,000 falls i figure it will really breach big time then

This retrace on equities demise has stalled the tag team...

on my more personal charts (I like the 15m mainly now) I see the following but just my view of the market, I cannot include S/R levels or pip targets as they are individually integral to each currency and have no equivalent on a pairs chart :-

YEN - BUY (but would prefer some more Equity falls to keep me confident)
USD - BUY (but as above - but dont bank on big volatility like the Yen upwards)
CHF - SELL (but I get nervous when its not following the Tag team now )
AUD - SELL (but its retracing a little) - also prefer to have confluence with NZD
NZD - BUY (but retracing currently) - also see above re confluence to AUD
GBP - SELL (but retracing currently)
EURO - FLAT - No Signal
CAD - SELL (most consistent signal in last few days)

later :smart:
N

 

[NVP]

Tee Hee that reminds me....

cant wait for Dominic at moneyweek to publish and discuss his "lets sell the Yen" article a few weeks back........jees

N

 

[NVP]

I'm like Batman, up late at night and sleep during the day. Hi Neil I like know if you could make any mods on the FXCORRie?

OMG......could this be true ?

do we have a caped crusader now using the Corrie to fight crime and defeat scammy expensive trading systems wherever they lurk ?

time will tell...time will Tell
N

(god this takes me back and seriously ages me - remember in the 60's - for the UK it was screened tuesdays & Thursdays about 6pm ?)

http://www.youtube.com/watch?v=VSaDPc1Cs5U&feature=related

 

[NVP]

wait a minute..........what does that make me in all this caper ?

I am not dressing up as bl**dy poncy Robin

N

 

[NVP]

Hi all

lunchtime check..........

the US30 futures is still trying to fall....its around the mid july levels and if the 10,000 falls i figure it will really breach big time then

This retrace on equities demise has stalled the tag team...

on my more personal charts (I like the 15m mainly now) I see the following but just my view of the market, I cannot include S/R levels or pip targets as they are individually integral to each currency and have no equivalent on a pairs chart :-

YEN - BUY (but would prefer some more Equity falls to keep me confident)
USD - BUY (but as above - but dont bank on big volatility like the Yen upwards)
CHF - SELL (but I get nervous when its not following the Tag team now )
AUD - SELL (but its retracing a little) - also prefer to have confluence with NZD
NZD - BUY (but retracing currently) - also see above re confluence to AUD
GBP - SELL (but retracing currently)
EURO - FLAT - No Signal
CAD - SELL (most consistent signal in last few days)

later :smart:
N

right I have to go but if you are still watching the charts the calls above are looking very sexy at present as dow is still falling - fingers crossed

Swissie is now going with Tag team up for a major risk play so i really like the shape of all of this now

I will try to pop in later....
N

 

[NVP]

Jees - will i ever leave ?

i'm a little surprised that the NZD is holding so well......it could really really dump if these dynamics continue and join its mates - and could be the move of the afternoon

byeee
N

 

[NVP]

rule 1 of trading - always have other options ready to roll....

if the dow fall stalls or consolidates then buy GBPUSD as the GBP is absolutely straining at the leash to rise

N

 

[NVP]

Hi all

Popped back inbetween meetings.....hmm

wow !! - what a turnaround in procedings (doncha love trading :innocent......

US30 has slowed but is still going south, however yen and especially USD have decided its time to Venture south AGAINST the classic risk play flow.....:|

sometimes Sh*t happens......perhaps bad news out on the greenback ?

interestingly you would be quids in on the contrarian play I had suggested on GBPUSD but GBP has done nothing to contribute to the party....its all due to USD suddenly freefalling (see below attachment 2) :whistling

(Euro and CHF were blinding buys - but I didnt see them coming at all before I popped out)

but hey thats trading - take it when its offered and say you anticipated it !! (lie lie)

later
N

 

[NVP]

if dow keeps retracing up i'd look at Euro and GBP as continued Buys into USD

I dont like trading the USDCHF currently due to CHF's increased (well now unfettered relationship really ) direct correlation with risk and the commdolls still look weak

N

 

[payroll]

wait a minute..........what does that make me in all this caper ?

I am not dressing up as bl**dy poncy Robin

N

Hey Neil,

You really made my day lol , Robin always wanted to be Batman! We ain't mad at'cha.

 

[payroll]

Tonights trade Sell AUDJPY -
TP - 77.66

 

[NVP]

Hi all

i'm a big fan of Tom Yeoman....he was creating excel based strengthmeters way way back in the early 2000's before I had even discovered the Idea of following indivdual currencies to find an edge...

Heres a recent e-mail I have recieved from him and I reproduce faithfuly below - we share simiilar goals (I believe) in our appraches and indicators (although I suspect my Ideas for tradng methods / Signal generation are more advanced/extreme) so I am always happy to present Tom here (uniike other correlation marketeering "expets" :innocent

If anyone ever (or has ever) subscibes let me know how its going :smart:

(NOTE - I have never used this software and do not have a commercial relationship or commission based contract or affiliate agreement with Tom or his companies)

N


In Forex, all the trading systems you encounter talk about pairs. The brokers offer us pairs, and all the charts show us pairs. Even all the advice you find on Forex Trading covers pairs and they barely mention individuals. But, break it down and you'll find you are trading individual currencies. Wouldn't you think that knowing how individual currencies are performing against their peers would be paramount to anyone involved in foreign exchange?

Seeing currencies as individuals should be basic stuff you learn right away, but it isn't.

Each currency has its own peculiarities. The Swissy is called a "safe haven currency". The Canadian Loonie is affected by Oil and metal prices so it's called a "commodity currency". Behind each currency is a story and a country. The major currencies we are most likely to trade everyday have things happening in their country. The Australian dollar is being shaken by political turmoil this week and the Japanese Yen has its own weirdness going on. There are lots of things that affect an individual currencies price and all of it will most likely affect your trade position..

The AccuStrength is independent charting software that shows you individual currency strength and weakness. If you can see the behaviour of an individual currency against all its peers you can make rational decisions about whether to trade a certain signal your system is giving you. In order to make consistently profitable trades you need to know the condition of individual currencies.

Using the AccuStrength chart you see the behaviour of the individual currencies involved in your potential trade. You see how they are doing on their own and make informed decisions on what pair combination will give you maximum profit from each trade you make. The AccuStrength clearly shows the condition of the currencies you are about to trade with.

AccuStrength clients are traders who take their profession seriously. Knowing the true, individual currency trend is the key to success in Forex. You have nothing to lose and everything to gain with my seven day test drive policy. Find out more by visiting the AccuStrength website below.

http://accustrength.com

 

[NVP]

Tonights trade Sell AUDJPY -
TP - 77.66

hey mate

lovin the call.....3 risk currencies up (dow falling) and the rest down....:smart:

target is going the wrong way though ? - I was seeing low 74's as a T1

N

 

[NVP]

the 10,000 level on the US30 futures is so close now we can taste it

its going to be a fascinating day :smart:


buckle up
N

 

[payroll]

Looks like it heading north we'll soon see, that's what stop-losses are made for. The ATR is at 73.64

 

[NVP]

Looks like it heading north we'll soon see, that's what stop-losses are made for. The ATR is at 73.64

Hey P

this is a fascinating call my friend and I must admit I cannot see it (yet) on my own charts

although I will agree the Yen is not moving upwards now as agressively as it should with the flat / falling US30 futures and any retrace upwards of the Dow will be a sell yen signal as you are calling

The Aud on my 15m charts is indeed about to now switch to a buy signal , but as its a trend change I need a little confirmation of the breach up before I committed to the buy

at ths moment my main calls would be (on the 15m's) selling GBP into anything that has an upwards bias...... USD , EUR....swissie at a push

G/U is looking good now down to at least 5380 anticipating another retrace before achieving that target..and has been drifting down nicely

E/G will now go to 8240 if the 8220 is breached soon then a T2 8270....it will (naturally) retrace during this journey so up to viewers to chase the breach or wait for better price when it takes a breather - which Euro pairs normally do....

N

 

[payroll]

Yep you're right, the GBPUSD has the only appeal right now, I do think the audyen will fulfill the short move it just taking it's sweet time about it!

 

[NVP]

hmm......US30 could consolidate a little now so i'll take the continued opportunity to sell the gbp against anything that will be predictably flat or rising

N

 

[NVP]

Yep you're right, the GBPUSD has the only appeal right now, I do think the audyen will fulfill the short move it just taking it's sweet time about it!

AUD is a buy on my 15m charts now (albeit a little early still) and if the Dow holds or retraces up I am beginning to see AUDJPY buy as a Great call Payroll

N

 

[payroll]

I wish I could take credit but I traded the other way and I'm 20 pips from my stop-loss