Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

That´s right mate, EUR/NZD made nice sell this week(I took almost +100 pips).. it could be more, but I have to optimise my entry/exit points

Yes, let´s call this mighty power of convergences

thats real nice K......

N

 

[NVP]

Timezone trading

Heres my take on when currencies are most active......

or at least when they are moving based on News relating to their own individual Country/region/and local markets (proactive activity) as opposed to reactive movements when the currency is "asleep" and it is reacting to news releases on other Countries/Regions and markets that are active......

understanding why a currency is moving is very very important re above to me and my strengthmeter work....for example if the Aussie Dollar is very volatile and active say at 13.00hrs on chart below

ask yourself what the hell is going on......as its gonna be other currencies that are moving the Aussie D and not itself

N

 

[NVP]

if you take this to the natural next progression..........

everyone says trade the liquid hours when 4-5 currencies are awake and kicking chunks out of each other .............

but in Stengthmeter trading on my corrie, I only need to get 1 currency direction correct to be pretty ok regarding a b/e or profitable pair trade (from the actives)

and If I can include a second currency that is sleeping and therefore theoretically less volatile and subject to nasty surprises...........to be a steady partner

we then have high probability trades with low/steady returns by selecting 1 active and 1 sleeping currency :smart:

N

 

[NVP]

last weeks action...................on the 1 hour :smart:

N

 

[NVP]

i'm a big fan of Marc.....

http://www.forex-fxtrader.com/blog/free-forex-market-analysis-13th-march-2011/

 

[NVP]

the markets today have a global tragedy to absorb and pent up pressure from the weekend close

EXTREME DANGER TRADING ANY ASIAN MARKETS :!::!::!::!:

N

 

[NVP]

heres the overnights.............

been a few years since we witnessed such a global disaster to an important and integral G8 country

whilst the horrors and tragic stories are harrowing and disturbing the markets will take no prisoners so observe and learn from it.............

N

 

[NVP]

big divergence on E/G

 

[NVP]

a few pips around on E/J and E/U if you followed the rules

and G/U but it was a much more volatile critter !!!

N

 

[NVP]

big divergence on E/G

http://www.trade2win.com/boards/for...g-basic-ideas-strategies-806.html#post1463804

i'm pleased with this one as well.......the E/G had been significantly diverged over the weekend and through the overnights so you may have been waiting a long time for that.........but worth it in the end

pip city this morning if you are on the ball using the 80/20 ma system and following my comments on Convergence/Divergence Trading rules available from the post below onwards

http://www.trade2win.com/boards/for...g-basic-ideas-strategies-774.html#post1443986

N

 

[NVP]

the Euro is strong today with 2 touchdowns........

No videos or Fuss in respect to the Japanese tragedy.....

N

 

[NVP]

looks interesting

E/U is at 1.3950

 

[NVP]

naturally E/J is flying south already......

 

[NVP]

Naaaah.............the E/U never got into that groove sadly


GBP is firing up............perhaps a touchdown coming ?

N

 

[NVP]

heres a few divergence / Convergences I have been watching on the 1 hours
see this set of posts for rules

http://www.trade2win.com/boards/for...g-basic-ideas-strategies-774.html#post1443986

different pairings are allowed different band divergences re alerts :smart:

any pairs in the same tribes can be traded on lower Band extentions

I would be tempted at 3 bands for any combos here and if it goes
higher before you enter even better (we need to refine these though) !

Group 1 - Euro, GBP and CHF any combo
Group 2 - CAD,Yen,USD
Group 3 - AUD and NZD....(and i'll pay you a £1m if they ever get above 4)

target a 1 band reconvergence pippage from entry or even better - a target pip level
We will be discussing this over the weeks now re exit

any other combo is 4 bands minimum (5+ is even safer and 6+ is very safe to trade) or above to trigger and again target some set pips or a 2 band currency fall as you can generate some fast moves from these dudes - smash and grab !

and Yes Aud/Nzd divergence was tempting at times (especially with NZd sooo Deep) but it never got to 3 bands sadly....shame as it did converge recently....this pairing actually could be traded at under 3 bands as it rarely get there and the volatility of the NZD can generate some nice convergences .....shame about the spreads !!
N

 

[NVP]

frustrating .............dow is falling (11900 coming) but i'm not gonna sell Cad or AUD into usd....

where are the the euro and GBP when you need them to fall !!!!

N

 

[NVP]

crazy.........the markets are plain crazy.....

touchdown GBP.....

CORRECTION....THE CLOSING BAR WAS BELOW THE LINE SO NO TOUCHDOWN

(classic example of never taking signals during the bar !!)

 

[NVP]

well they are not ALL crazy if you break it down a little

but the crazy Currencies are Euro and GBP that are showing stunning resilience in this adrenaline pumped day

N

 

[Kruspe_Svk]

Hi Neil,

Now I´m checking today´s situation, GBP is getting stronger (as we excepted), I made almost +50 pips on buy gbp/jpy ... currency strength indicators are so powerfull, did you check that one I sent you ?

"greed is good"

c ya later N

K

 

[NVP]

Hi Neil,

Now I´m checking today´s situation, GBP is getting stronger (as we excepted), I made almost +50 pips on buy gbp/jpy ... currency strength indicators are so powerfull, did you check that one I sent you ?

"greed is good"

c ya later N

K

Hi K

I have looked at it but no time yet as to many things on the go this week

I will do though :smart:

N