Best Thread Correlation Trading - Basic Ideas and Strategies

GBP is the most exposed currency it this all stalls now.....

selling G/U on lower Timeframes ......but we need the signals to do it gang ....
 
must be bedlam in the US pits.....inside 100 points

amazing what 5 years of printing presses can do

N
 

Attachments

  • less than 100 points left.jpg
    less than 100 points left.jpg
    82.7 KB · Views: 121
and look at the difference in the dynamics 5 years on my friends

in 2007 the GBP was king and the Yen,USD and CHF languished in the south as the Dow conquored all

and in 2012.. we see the the USD and Yen are strong (?) ....with no clear supercurrency .....and a fading Euro (and thats before they print money)

boyoboy do things change ....eh ?

N
 

Attachments

  • then 2007.jpg
    then 2007.jpg
    47 KB · Views: 138
  • now 2012.jpg
    now 2012.jpg
    38.3 KB · Views: 130
GBP is the most exposed currency it this all stalls now.....

selling G/U on lower Timeframes ......but we need the signals to do it gang ....

its gotta stall though....Dow still coming north ! :eek:

No Stall yet ....and the GBP has finally decided to start moving north itself ...

go figure...:smart:
N
 
and look at the difference in the dynamics 5 years on my friends

in 2007 the GBP was king and the Yen,USD and CHF languished in the south as the Dow conquored all

and in 2012.. we see the the USD and Yen are strong (?) ....with no clear supercurrency .....and a fading Euro (and thats before they print money)

boyoboy do things change ....eh ?

N


http://fxcorrelator.com/corrie2/blog/history-101/
back on history again !

heres the corrie on a monthly 150ma setting ..I cant set it higher as I lose the history/charts

Again look at how the Yen and USD feed the Dow rises up to 2007 / & Dow feeds the YEN & USD falls..........this carry trade is a self fulfilling prophecy :smart:

now we see the 2008 shunt and Yen gets more of a kick north than USD in that move.....so they become a little less re-aligned than 2002...

but now look closely at the last 5 years .....is it my eyes or have the USD and Yen worked less south on this Dow climb ?

the Yen certainly has .....it hasnt been the mega carry trade like the 2002-2008 move .........sure USD has been hit ......but as much ?

what does this all mean ...............well something and nothing ......its up to us to find rhyme and reason and see if that gives clues for future patterns !

Ive been playing this correlation / Strengthmeter game now since the mid 2000's and I am still learning every day

Currency dynamics and relationships move in and out of patterns all the time ....if you can understand even a small percentage of whats happening it gives you a better edge

but you need tools like the FXcorrelator to do it ......(y)

good hunting today :smart:
NVP
 

Attachments

  • history lesson.jpg
    history lesson.jpg
    80.9 KB · Views: 162
Last edited:
Well I started the Week looking for the Dow to consolidate south after its recent rises

I was ok monday but yesterday ....boyoboy !

Dow is still on the hunt north......its barely a hundred points of all time stardom again (2007) see last post

so I suppose i have to give ground and say that until this changes I have to be bearish on the dynamic Duo of USD and YEN

now watch the market prove me wrong....!

NVP
 

Attachments

  • dow still rising.jpg
    dow still rising.jpg
    63.6 KB · Views: 125
but in truth all this bullish optimism can only last so long......

read the story of the Emperors new clothes

NVP
 
more bites north for Dow recently ....but a little respite at the moment

I cannot believe how much the euro (blue) is getting to the top of the pack recently on this 20ma setting....

N
 

Attachments

  • more bites.jpg
    more bites.jpg
    80 KB · Views: 114
i,m watching an E/U sell below 1.2883 ish...

i need the Dow to stall a bit south to confirm

we have Strong Dow and Strong USD on the 15m's ....I need to see which one is right !
 
frustrating .....not as much action as I thought ...tighten up as its gonna retrace ....
 
watch the G/U now above 1.6105 ....I think the Dow is going to track a little north again
 
all flat again ........step down

gotta scoot .....handful of pips today as not been trading much .....

Later
N
 
For some days I have the willing in all posts and discussions regarding Correlation - TPO generated a version of this indicator a while back and included it as part of his many,many excellent Indicators available using Metatrader.Correlation Trading has some basic Ideas and strategies.By knowing these we can win in the trade.

Hi M see the links below ...I have been lucky enough to discuss Strenghtmeters with many great traders of this art ;)

N

http://www.trade2win.com/boards/for...rading-basic-ideas-strategies.html#post876092
http://www.trade2win.com/boards/for...-basic-ideas-strategies-1105.html#post1864814
 
hey all

USD still bearish overnight as Dow ploughs along that flattish channel

lets see what the day brings

NVP
 

Attachments

  • usd still bearish.jpg
    usd still bearish.jpg
    69.7 KB · Views: 116
Top