Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

looking around the forums and I am reminded of an interesting point that I hope people see I try to flag here a lot .....especially with inter-market correlation and currency strengthmeter dynamics

"its not just understanding what the market IS doing , its also understanding what the market is NOT doing as well.....they are different things and equally relevant to making trading calls "

N

 

[NVP]

damn aussies have gone strong on the dow retrace ..........perhaps its right to join them

N

 

[NVP]

although the A/U is looking overstretched on the 15m TF..........so perhaps not ......

wait and see if the euro rallies instead as much more pips in the tank

N

 

[NVP]

stop............I am talking garbage ..........sorry I am not 100% focused !!!!

the dow is bouncing south and I tell you all to sell the yen and USD .....??

sorry gang........the move is still potentially selling Euro and GBP.......but GBP is very oversold now .........a little more poss left in euro trades

sorry i'm not 100% today re a cold/bug and also work issues ....

N

 

[NVP]

so calling it a day for a while ...........later

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[NVP]

Gameplan ......

notice how people are going to the AUD and NZD so far in Jan as assets rise in value.........Yen being buried.......(right chart 4hr on a 20/3)

Right chart 15ms - standard 20ma settings.......today I am watching for a dow bounce south and resultants opportunities to buy USD and also Yen hopefully .............Europeans will be easy prey based on their weak showing so far in Jan

N

 

[NVP]

so again here is the trap being set............

the interesting thing here is the current 15m TF has classic signal to buy Euro and GBP into Yen and USD ......I am now throwing the cat amongst the pigeons and telling you in truth and based on a lot of years experience.........the odds are significantly higher of profitable and extended trades if Dow bounces .....

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[NVP]

Jees ............huge action now trying to prove me wrong ............

 

[NVP]

I missed a 10 pip scalp buying G/U because of this ploy.........it better work !

remember markets always will move a little bit more than you think before changes happen.........its what they do

N

 

[NVP]

well dont say I dont call it live here...........GBP and Euro have delivered a lot more pips on this move than I thought......such is life

watch the dow futures though - thats the key

N

 

[NVP]

amazing ............the market will retrace but I am getting my face rubbed in the dirt as the simple 20ma FXcorrelator signal is delivering spades on this on while I thought it would turn earlier ............

 

[NVP]

Euro is flying !

 

[NVP]

so there you have it......my own simple 20ma system shows a decent trade signal but I was playing the smart guy .......(tee hee)

Remember remember remember

" A sucessful Trader is smart enough to build a good trading system - then dumb enough to follow it ! "


later
N

 

[NVP]

nice volatility in the G8 as well...........now best volatility in last 24 hours .....

N

 

[NVP]

here it is ...........Timber

personally the CAD and AUD look more susceptable to falls than the GBP and Euro but hey .....I think we have some retraces here regardless

and the volatility i am seeing on the G8 for the 15m TF cant live at the level it is ....its over cooked

N

 

[NVP]

damn but the euro and GBP are hot ........they have held the line ....

 

[NVP]

weak weak USD and Yen at present ...........

 

[NVP]

hey all - sorry tied up a lot this afternoon

........interesting day so far with plenty of volatility !

N

 

[NVP]

mornin all....

heres the weeks action (right chart) on a 1hr setting

you can see that the dows response north has netted a lot of sell pips on USD and Yen (well the usd took a little more time to persuade) .......thats what we like to see

I would be surprised to see continued gains on the dow today but hey - what do I know

ok - I have had some kind of flu bug virus this week and it seems its still not finished with me - banished to resting for the day so play amongst yourselves

have fun !
N

 

[NVP]

back on monday - hopefully will have ditched this virus

I made some poor calls this week......My advice to anyone is to step away from the charts if you are not 100% fit......

be that feeling poorly......problems with family, work , friends etc etc ...anything that distracts you will not help at all

later
N