Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Hi all,

Felt strange this morning not rushing downstairs to switch on pcs ready for the morning session, complete withdrawl symptons there! Instead had a good time going round the shops buying last minute stuff for Christmas - anyone else notice how shops not that busy?

Looks like you had a cracking morning with E/U being the leader and G/U floating down then reversing up again. That lovely E/G pair confirmed this and was a straight riser right off the London open and some of your posted corrie charts N seemed to have called that 100%

What are you looking at for the US open? Did that sound golfy?!!

Trade well and regards,
Simon.

im looking at tiger nailing about 6 birdies.........:cheesy:

boom boom !!

N

 

[jrplimited]

Lol on that one! Did you get that joke out of a Christmas cracker?
Simon.

 

[NVP]

hi JRP

these were the morning plays through the eyes of a corrieindex 15m chart set on 14/3 (which is roughtly trading as crossovers to Zero line being above or below the 20ma)

on 7 am bar saw a dramatic reversal and good trades for a while selling gold (buying usd ) into the europair....

then around 10am the euro finally got north to join all the markets.....you could have traded the E/U as bravely as you felt and even as the gold line turned up towards the markets ?......that would have been shere brilliance today or a stupid call when it fails the next time......:whistling

markets are currently slooowwly drifting down and to me the correlation call is selling Euro and buying USD if this continues and is confirmed on the 5m's (seems nice!)...GBP seems to be following the USD and Yen for walkies so those 3 are together....

N

 

[NVP]

Lol on that one! Did you get that joke out of a Christmas cracker?
Simon.

nope......i'm just a wild and crazy guy....

N

 

[NVP]

wow.....ok so this trade is opposite to what the 15m were saying but i wanted to show what the markets can indicate sometimes as a forerunner to a Forex move

I swear to god below those vert lines are the same bar timewise on the 1m

Equites went north and the gold and oil were almost north but nothing stirred on the currency lines ......then BAM they followed the market correlation

ok so what you say.........but i liked it !
N

 

[NVP]

back to business.........europair south looks a good bet !

Gold doesnt lie does it !

N

 

[NVP]

hi JRP

these were the morning plays through the eyes of a corrieindex 15m chart set on 14/3 (which is roughtly trading as crossovers to Zero line being above or below the 20ma)

on 7 am bar saw a dramatic reversal and good trades for a while selling gold (buying usd ) into the europair....

then around 10am the euro finally got north to join all the markets.....you could have traded the E/U as bravely as you felt and even as the gold line turned up towards the markets ?......that would have been shere brilliance today or a stupid call when it fails the next time......:whistling

markets are currently slooowwly drifting down and to me the correlation call is selling Euro and buying USD if this continues and is confirmed on the 5m's (seems nice!)...GBP seems to be following the USD and Yen for walkies so those 3 are together....

N

Funny ole game trading.........my call was correct from above re this
afternoons action but it was only due to gold falling - pushing USD upwards

heres the 15m now......see the gold fall and USD rise....the europair went into neutral mode letting the usd rise do most of the work on the E/U and G/U selling trades this afternoon

lets be honest...its only now that the equities are faltering on that climb.....perhaps more selling europair into the evening then ?

look at the usd on the large 5m corrie chart testing that resistance level.........

N

 

[NVP]

Hi all

apologies but 1 more post !

We only focus scalp-wise on the G/E and U so we do tend to ignore a lot of the rest of the G8 action deliberately

when writing previous post it doesnt take a rocket scientist to realise something else must be going on when usd (and Yen eventually) were going up and the Europair are not responding with big falls......basically other currencies are taking the hits !

(NOTE - corrie trading is a Zero sum game on the G8.....everything must add back to a Net zero move overall.......always !)

heres the bigger 15m picture...........this is why we are gradually building the higher Time frame T60 team to watch the bigger stuff !

In England we like our fish (cod) and chips...and CAD certainly got a battering this afternoon !

Aussie D took some hits later on as well........


N

 

[NVP]

hooraah !!! arty:

1,000+ posts and I still I have no idea what i am doing..........:cheers:

is this thread the longest prologue in history ?

N

 

[phreddyinbg]

hooraah !!! arty:

1,000+ posts and I still I have no idea what i am doing..........:cheers: N

Congrats on the 1K, but I cannot come out to play today. Got to do what Simon did and go shopping. Will it take all day? Not quite but I will be in no condition to watch the currencies when I come back.

See you all tomorrow.

Anyone else want to come and feed the ducks?

 

[phreddyinbg]

Just a quick look before I go
GBP going up, EUR going up JPY going down according to Heuy, Deuy and Leuy so buy the EUR/JPY?

 

[phreddyinbg]

Did I call that one wrong or is this just a retracement?
Come on Neil, it is only quarter to two in UK, have you gone to bed already?
Don't expect Simon to answer he's probably at a party and a bit the worse for wear...

 

[phreddyinbg]

Correlation Trading - Beginners Corner

Sabotage!! They turned against me!!

 

[phreddyinbg]

Correlation Trading - Beginners' Corner

A quick view again over lunch.
Look USD down CAD up so sell USD/CAD. Did that-or should that have been buy USD/CAD? It is going up!!

 

[phreddyinbg]

Re: Correlation Trading - Beginners' Corner

a quick view again over lunch. Look usd down cad up so sell usd/cad. Did that-or should that have been buy usd/cad? It is going up!!

look!!!

Found the answer. Shouldn't be playing with this pair in the Asian session. It is in a 20 pip range and I bought at the bottom.
Got to go now before the big boys wake up and come to laugh at me.

 

[NVP]

hey everyone....day shift taking over....

thanks to phreddy and I'll comment later on overnights

heres 7.15am bars ......WOW....it wakes up during those 15mins doesnt it !

already some pips buying europair

tag team falling comfortably after slow overnight action....initital market bursts
seem bullish supporting the move

buy into retraces as (if) E & G fall back into the 15m range......theyre retracing slightly at the moment

N

 

[NVP]

everyone enjoying the ride ?


nice correlation all round......perfect actually.....

 

[NVP]

USD is falling faster than Yen......

you know what ? I have a gut feel that the 1H divergence created in last 4 days (below) is gonna close a little today .....

we will need gold very strong and a lackluster or even weak performance today from the Equities (espec S&P) to help it happen !

N

 

[NVP]

wanna see how i think the tag got so divergent ?

just my humble view.......but look at the 1000/1 indexcorrie below

bold is tag team

the red Ftse , Blue Dax, Grey s&P30, gold = Gold and Brown - Oil

so what do you see happended in last 4 days......I see the S&P bullish driving the Yen down...and I see Gold collapsing that keeps the USD higher than it should be (and oil is not exactly flying up either)

gold is driving USD at the moment so today a Strong gold surge and some mediocre Equities could close that gap big time........we need s&P open later to help confirm .....futures is ok but not the real mckoy

unfortunately nikkei was big rises overnight so thats not supportive of the play really

not that I advocate or even comment on trading the tag on this thread ..........yet :smart:

N

 

[NVP]

Did I call that one wrong or is this just a retracement?
Come on Neil, it is only quarter to two in UK, have you gone to bed already?
Don't expect Simon to answer he's probably at a party and a bit the worse for wear...

hmmm......JRP our student is very cheeky and going to be a real handful.....I can see it now

N