Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

tighten those buy stops.....looks like a bit of retracing

 

[NVP]

jees usd is weak....nothing can help it rise currently

 

[NVP]

nope - not even short and sharp dow falls (which has shaken the yens rise)

wow.........the dudes are selling usd like its already being printed

N

 

[NVP]

so ok then if the dow is switching to some sells ......the ball is suddenly with the falling Commdolls and theoretically a rising tag team ........

but usd is real sick today and is not playing.......

so at this moment If dow continues to fall I play my trades around the faithful Yen that should keep rising...........including Selling U/J which has been dumping for over a day already

unless the BoJ step in soon...........

N

 

[NVP]

hi gang

just getting some pms re the us30..........

imagine the US30 Dow is a like a stream with a strong flow

then imagine that the GBP,the Euro,the AUD, the Cad and the NZD all love moving with the flow of the us30 direction...the faster the better !

then imagine the Yen, USD and the CHF all like Swimming best against the us30 current..the faster the better

in a perfect world you then pick off the best combos moving as they should be based on above......

contrarianly by observing how currencies dont move with the Stream... thats also good to know as if the stream suddently changes direction - they should then fly along with it !

N

 

[NVP]

not the usual scenario at present...........time to go home

N

 

[NVP]

personally I would step back and ask myself what damn currency is going with the usual correlation principles and they are AUD and NZD that are falling

then if the us30 keeps dumping I would seriously look for the tag team to start rising soon as they will only dump for so long.......I think Boj is currently intervening personally dumping yen across the currencies

N

 

[NVP]

you could just short the US30 of course.........

(Jess I said that yesterday as well)

N

 

[NVP]

jees I am late for a meeting but I have to watch this all pan out.......fascinating learning exercise

N

 

[NVP]

i'm banking on the call above ....stick with the currencies following the correlation principles

that is selling AUD and NZD that are falling with the us30....

 

[NVP]

the gbp is looking precarious.....perhaps a scalp coming on G/U sell for 10-15 pips

 

[NVP]

11058 and falling .....my thoughts are that usd wil lfinally rise now or stay at least neutral

i'm looking for some falls on the NZD and AUD that stay true to correlation principles

I think that GBP is being tempted to fall but of course the 1h and 4h arrows are stacked upwards

N

 

[NVP]

heres those sells right now.....c,mon baby fall !!!

 

[NVP]

of course this is all very very messy if the us30 starts to rise again as all bets are off........

jees time to step away........

from the start of this recent session all I really needed to say was

us30 is falling but so are the tag team ....no trades till normal service is resumed

but then again you dont learn anything unless you try to read the market in all conditions

later all ...have a great evening
N

 

[NVP]

mornin all..........


i'm trying to scalp E/U sells at the moment......then off to work

later
N

 

[NVP]

interesting last 24 hours or so re the markets

heres the Black swan boys take on it.........unfortunately I dont understand the comment re appetite for risk.....

Ive also added a chart they used a while back that shows the 4 possible correlation principles re markets vs USD..........I like this approach (although not necessarily the same content) and will be incorporating my own plans/trading approach on a similar style grid to aid my fading and erratic memory.........

the Dow has fallen in this 24hour period they are discussing so thats unwinding risk isnt it ? :whistling.....

Perhaps (probably) the guys are talking about all of october (see below) where sure weve seen the dow pick up nearly 400 points with little respite.....interestingly the usd (not shown) during this same period was falling in first half of the month (Quadrant 3) and then rising last 2-3weeks (Quadrant 1)

the last 24 hours put the usd economy in quadrant 4 ..........and thats not a good place to be for long !

N

 

[NVP]

hey all

Ive been a little fortunate selling E/U this morning (with the Tag shrugging off any attempts now to fall)

heres current signals

N

 

[NVP]

this is nice nice nice !!!

see how we have a lot of currencies pointing North ?

the G8 is a zero sum game......so the more currencies ganging up one side (especially with power) means that the currencies on the other side should get some lovely turbocharged moves in opposite direction generating good pippage (trading against the other side of course)

3 vs 5 is not super brilliant........6 vs 2 is better and then theres 7 vs 1 for the BIG BIG plays !

and heres my 2 favourites from the 3 sell currencies on offer at the moment - CHF is a funny creature as I keep mentioning so I 'm not a big fan of trading it against the tag team

N

 

[NVP]

still lovin these guys..AUD more so

N

 

[NVP]

poss scalp on G/U sell go below .5890 to 5875 if us30 falls below 11050