Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

selling CAD looking interesting as well.....

 

[NVP]

gotta scoot......looks like the usd and yen are retracing anyway ......

later

 

[NVP]

hey all

back again ..........

yep the usd and yen retraced from my last post.......I wouldnt have sold them though until the dow became bullish again from about 9.30 GMT (8.30 on the chart)

and we now have seen another direction change into lunch.....

Trading the markets is a little bit of a lottery i'm afraid at times .....currencies cycle up and down and its all about how long they hold in that direction once bias is confirmed......

thats why its so hard.......and if the market decides to chop then you are not gonna make money.....thats the period that seperates the men from the boys ......and the amount of losses sustained

NVP

 

[NVP]

Hey all !

simple simple simple !|FXCORRELATOR

Despite my hundreds of variations and combinations of indicators based around the FXCorrelator, I have to confess that the 20ma Default setting that I offer here for Free is a world beater ....

Why ?

because it is based on a great concept of relative strength combined with simple MA ideas and correlation concepts ...and it is consistent in that pattern most of the time....

DOW Rising = YEN & USD falling
DOW falling = YEN & USD falling

look at 3 timeframes right now below.... weekly to 15ms...the broadest spectrum of TF's to trade .....

and the pattern is there all the time ....!

Now go trade it !
NVP

 

[NVP]

anyone bag that gold sell yesterday ?.....I was in meetings

http://www.trade2win.com/boards/commodities/157250-fxcorrelator_goldmeter-7.html#post1975578

Trading rules are in the signature area below .....:smart:

NVP

 

[NVP]

USD & YEN sells are still going .....

 

[NVP]

So here is probably one of the most frequent questions that traders ask.....

what Timeframe do i use to define Trend ?

heres my FXcorrelator on the Dow with 4 Timeframes shown

so what is the Direction I should be Trading the YEN and USD ?

N

 

[NVP]

Well nothing is easy of course !

people say "Trade with the Trend".........and generally they mean the trend of higher TF's (or higher MA's if you are using the same TF)

ok .....I will look just 1 TF up the scale on each chart and see what I should be doing for the 1hr chart (using the 4h as trend)

 

[NVP]

so heres the 1Hr trend to trade.......

The 4hr still shows the dow below the 20 sma and yen and usd are still above the Zero

so the 1hr chart needs to wait for that signal again.......

and it lost that signal late last night.......

happy ?

no ?

why ?

 

[NVP]

what.... you are unhappy with my signals ?

you have watched 70 pips walk away from you on AU ?

how can this be so .....?

 

[NVP]

so ......you wanted a system that allowed you to trade that lovely signal in the 1hr chart....but you dont want to now pay attention to the higher TF trend ?.....which is what is taught....

always trade the Trend

you want your cake and to eat it as well ?

hmmmmm.....this is difficult !

 

[NVP]

ok i am kidding ..............but can you see my point ?

you cant have it both ways unless you start to break the rules .......and without rules you are on the road to disaster......

if we step back over the last few days can you see how when all was in alignment (1hr following 4hr trend) you made 2 very very nice trades !

so dont be greedy !

One of the big problems in Trading is unrealistic goals and performance .....you expect miracles and dont get them ? ......

so get more real and get things in perspective ......its never like what the marketeers and scammers promise on this forum and the many junk e-mails and messages you get...... ...its a dream :smart:

welcome to trading !

NVP

 

[NVP]

and if you really wanted some A/U buys today to get those pips

you needed to be a little down the timeframes ....right ?

heres the 15m using the 1hr as a trend signal

2 bursts of trading.........see ?

We are actually now technically Trading a retrace on the 4Hr chart......so we need to be on a faster TF to make sure we do not get caught with our pants down if the higher trend returns

you will not get all of the 70 pips that the 1hr chart promises, but remember you are probably using more $ per pip (risk adjusted).....so you are still doing ok !

get it ?.....good ! :smart:

NVP

 

[NVP]

ok gotta scoot ..later

N

 

[NVP]

hey all...

Week ending…..|FXCORRELATOR

heres the week so far according to my 20ma (Default) FXCorrelator system set on the Dow ....its on a 1hr TF

the arrows show where we had system correlation

Dow up & Yen down & USD Down
OR
Dow down & Yen up & USD up

during those phases you were free to find other currencies opposing the Yen and USD and trade them......aggressively !

dropping down to the 15m TF to find good triggers is aways advisable as well....or even the 5min if you are really bold !

anyway I see we are still Technically selling USD and YEN off a Dow still above its 20 sma line so lets stay on that until further notice

Good trading today
NVP

 

[NVP]

my only other thoughts on today looking at a 500ma (below)

aside from Economic news releases, I see the Dow has retraced significantly already on the sells earlier in the week so price now does not need to correct significantly into the weeknd

I See Euro has been hit big this week .....(second week of falls)....so perhaps we could see a little rally - especially if Dow gets more north, as Traders tighten short positions into the weekend

thats about it.....unless you see anything else in the chart ?....hey share it here !

be careful out there
NVP

 

[NVP]

the boys are back in town.....

and i did say euro may make a little comeback today ? :smart:

 

[NVP]

GBP getting spooked....alert !

 

[NVP]

wow ......world has changed in last couple of hours

and it looks like the small retrace has already happened (circled) and we are locking in for a run before Dow opening .......

N

 

[NVP]

wow ...on fire !!!

AUD and GBP are the killer sells so far.......Euro may come under pressure soon ?

N