Best Thread Correlation Trading - Basic Ideas and Strategies
NVP
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mornin all......
i'm still standing in the hallway trading this morning ......dont ask !
ok for all of you following this I have recently introduced that 4hr chart (on a 20ma delta3 setting) that tells me what the longer term bias is and where we should be following the higher trends to trade the lower TF's (1hr/15m)
yesterday I was hunting mainly 5m signals so in reality I was below the radar on this system....5mins and scalping is another completly different subject in my opinion regarding using Strengthmeters ....
so what do we see on it now my correlation compadres ?
you tell me........I see a USD and Yen that are sadly much more in disarray than recent months .....and they are really not staying together as much to generate confident correlation signals to me .....:|
but stepping back from that I am using the chart to tell me the pecking order for trading....and as you can see the Yen and USD generally are sells again and most certainly aainst the European currencies (incl GBP)
sure the Yen was fighting back......but it got slammed overnight so its back in the doghouse
so if you are trading 15m and 1hrs today use this bias chart for signals...yes I know its frustrating watching the retraces occur but the settings are designed to be pretty robust and keep you in the game by not trading against the trend .....:smart:.
now onto the overnights
N
i'm still standing in the hallway trading this morning ......dont ask !
ok for all of you following this I have recently introduced that 4hr chart (on a 20ma delta3 setting) that tells me what the longer term bias is and where we should be following the higher trends to trade the lower TF's (1hr/15m)
yesterday I was hunting mainly 5m signals so in reality I was below the radar on this system....5mins and scalping is another completly different subject in my opinion regarding using Strengthmeters ....
so what do we see on it now my correlation compadres ?
you tell me........I see a USD and Yen that are sadly much more in disarray than recent months .....and they are really not staying together as much to generate confident correlation signals to me .....:|
but stepping back from that I am using the chart to tell me the pecking order for trading....and as you can see the Yen and USD generally are sells again and most certainly aainst the European currencies (incl GBP)
sure the Yen was fighting back......but it got slammed overnight so its back in the doghouse
so if you are trading 15m and 1hrs today use this bias chart for signals...yes I know its frustrating watching the retraces occur but the settings are designed to be pretty robust and keep you in the game by not trading against the trend .....:smart:.
now onto the overnights
N
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NVP
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heres the overnights on 15m supported by the 4hr chart again....
well if you were patiently waiting for the yen to recommence southern activities the rewards came in asian session .......looks like the boj did something as the USD did not come with it off the bouncing/rising dow futures.....
at the moment it is suicide to bet on a rising Yen during the asian sessions off bullish equities......its almost the perfect storm with boj in the wings to ensure it stays bearish on their watch.......so if you are a night stalker thats the perfect play this week and go for it......dont worry to much about the USD following it down...in fact buying U/J is a perfectly sensible option in this situation ......AUD s/be the safer buy though
later
N
well if you were patiently waiting for the yen to recommence southern activities the rewards came in asian session .......looks like the boj did something as the USD did not come with it off the bouncing/rising dow futures.....
at the moment it is suicide to bet on a rising Yen during the asian sessions off bullish equities......its almost the perfect storm with boj in the wings to ensure it stays bearish on their watch.......so if you are a night stalker thats the perfect play this week and go for it......dont worry to much about the USD following it down...in fact buying U/J is a perfectly sensible option in this situation ......AUD s/be the safer buy though
later
N
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NVP
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hey all
well trading against the LT bias on 5 mins has been kind recently ........some nice sells on the Europeans into USD and Yen
personally I am flagging up perhaps a change back to the longer term trend over in next hour or so ....lets see if that minor support level on the Dow holds
N
well trading against the LT bias on 5 mins has been kind recently ........some nice sells on the Europeans into USD and Yen
personally I am flagging up perhaps a change back to the longer term trend over in next hour or so ....lets see if that minor support level on the Dow holds
N
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NVP
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yep..............GBP was the buy
.........Euro has not responded to the Dow bounce (yet?)on the 5m TF for the standard FXcorrelator 20/1 setting it was much more obvious that the GBP was in positive bullish mood (second attached chart)
remember this is not purist signal stuff now .......I played a hunch based on a dow bounce and went for it
later
N
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NVP
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mornin all......
deja vue again on the asian session......on 15m TF (right chart) Yen got bashed again off relatively light Dow action.....jees that dude is weak during the overnights !
ok....the left 4hr chart shows that still the sell is the Yen......USD is trying to claw back and now other currencies are congregating south - so things are becoming in truth a little unclear there as they cluster together......one thing for sure though is the buy has been the NZD.....presumably because AUD softened rates to 3% and NZ bank didnt move rates (?)
anyway trade what you see gang......on that 15m TF I suspect a little hardening of the Dow futures bouncing things north for a while so expect some opportunities buying euro and GBP in next hour or so (?)
later
N
deja vue again on the asian session......on 15m TF (right chart) Yen got bashed again off relatively light Dow action.....jees that dude is weak during the overnights !
ok....the left 4hr chart shows that still the sell is the Yen......USD is trying to claw back and now other currencies are congregating south - so things are becoming in truth a little unclear there as they cluster together......one thing for sure though is the buy has been the NZD.....presumably because AUD softened rates to 3% and NZ bank didnt move rates (?)
anyway trade what you see gang......on that 15m TF I suspect a little hardening of the Dow futures bouncing things north for a while so expect some opportunities buying euro and GBP in next hour or so (?)
later
N
