Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

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

jees I spoil you guys !

N

 

[NVP]

ok - in truth I think that the resistance on the 15m Dow will hold now into US opening

so I'm not anticipating an extention on the current E/U and G/U buys
N

 

[NVP]

selling of better than I thought ......nice !

 

[Itshamish]

Chaps,
For one of the most useful posts on correlations I have found (NPV's offerings excepted) I suggest you read and inwardly digest Post 14 by Pipsqueak. You will not regret it.

Individual Currencies & Relative Strength @ Forex Factory

 

[NVP]

mornin all........

heres the 4Hrs this week..........my only observation is perhaps some softening of the dow today off the recent rise....??

correlation wise we are confused in the 4Hr TF market

look at the YEN and USD they are strong even off of the Dows advance (?)

and look at the Euro.......its been destroyed already so I am a little nervous of selling it further if Dow softens

so all in all a cautious day today for me ........I will trade what I see on lower TF's and grab what I can based on news releases as well......

in fact the second 15m TF shows a superb sell signal on Euro already earlier so i'm not complaining today........:smart:

later
N

 

[NVP]

and for a simpler approach to trading lower TF's (any system)

here the 20ma delta 3 setting on that 4Hr chart

only Trade pairs using the relative strength seen here..........so the Euro can only be sold at the moment regardless of what you pair it with and so on.....in fact the european currencies arein a dire state in bottom 3 positions !

The NZD is on a phenomenal roll.......highest ive seen it fro many many months......shame I rarely trade it then

the Euro has been a 100% sell against everything since yesterday so money has been on a plate since then !

you can see that i think the Dow will retrace a little now........that should indicate more sells in the eurozone and help USD and Yen rise......I see a tsunami warning in Japan so that will affect moves over next few days as well

I think the yen will still rise personally and so will USD (assuming Dow folds).........time will tell

N

 

[Itshamish]

ODE TO A WTF GORMLESS "MODERATOR" (CENSOR)

But man, proud man,
Drest in a little brief authority,
Most ignorant of what he’s most assur'd;
His glassy essence, like an angry ape,
Plays such fantastic tricks before high heaven,
As make the angels weep.

Isabella, scene ii

Measure for Measure.

 

[NVP]

hey all.........those Euro and GBP sales are still going strong......euro sell doing better than I thought as I felt it was a little oversold...but hey .......i'll take it !

 

[NVP]

ODE TO A WTF GORMLESS "MODERATOR" (CENSOR)

But man, proud man,
Drest in a little brief authority,
Most ignorant of what he’s most assur'd;
His glassy essence, like an angry ape,
Plays such fantastic tricks before high heaven,
As make the angels weep.

Isabella, scene ii

Measure for Measure.

hey H

no worries - send me by PM the FF info you were trying to share..i've worked a lot with the main people who trade strenghmeters there so will be interesting t osee what you have found

N

 

[Itshamish]

Just done the noo. H

 

[Itshamish]

Managed to ambush the ride on sharp reversal - duration of trade about one minute. NPV FXcorrelator identified the opportunity.
Trade canny,
Hamish.

 

[Itshamish]

Much FX myth-destruction here from another first class source - from a Nial this time! Very useful background for FXCorellators!

6 Dangerous Misconceptions Of Forex Trading | Learn To Trade

Trade canny,
Hamish.

 

[NVP]

sorry all.........tied up at work big time ..........will catchup tomorrow

 

[NVP]

morning all..........

Heres the action.........notice the Pivotal position of Yen and USD on the left hand chart (4hr on 20ma delta 3 setting) the 3 main commodity dollars are above them and the Eurozone currencies are below them .....classic Tribal clusters !

this tells us to stay selling the eurozone currencies untl further notice.......unfortunately I never listen to my own advice and am thinkling I am sensing a DOW bounce on that 15m right hand chart which will propell the yen and USD south and give us a little action buying Euro and or GBP

GBP is the best potentia lfor buying given its aggressive bull stance already

lets see.....
N

 

[NVP]

Much FX myth-destruction here from another first class source - from a Nial this time! Very useful background for FXCorellators!

6 Dangerous Misconceptions Of Forex Trading | Learn To Trade

Trade canny,
Hamish.

interesting........and some good points he raises there....I dont know Nial at all so I cannot comment on his work.......viewers as ususal advised to make their own decisions...

for Price action I also recommend people looking at Lance Beggs work.....hes mentored me a little in the past and I respect him a lot........the books he has published on price action are truly excellent and I have never seen such great attention to detail for readers needs ! :smart:

N

 

[NVP]

I see Gold is coming north ..........

see how I trade gold in my signature area below

N :smart:

 

[NVP]

hmmmmmmmm

Dow may actually cave south ...that would mean trades aligned to the 4hr bias .....

sell Euro if this happens

N

 

[NVP]

scraping the Barrel here on the dow bounce .and I am only on this as the USD was already weak (below Zero line) on the middle 15m TF chart BEFORE the Dow bounced ...so I was looking for the extention in the move as Dow bounced North a little ...I'm ignoring the yen completely !

We need that first session to open on the mighty Dow to get some wind in the sails ..........

N

 

[NVP]

careful on extending G/U or E/U buys .......Resistance level there on the dow

 

[NVP]

nope........seems like the Dow got big !

look at the Yen and USD collapse on the 15m (left) chart

nice !
N