Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

fist serious negativity on Euro for a few hours so it had to be worth a punt .....

 

[NVP]

Nothing on the 1hr gameplan yet ........I wont trade if I dont see a breach

the Euro is interesting as It has notched up this morning so I am even more interested in seeing it fall later

N

 

[NVP]

a weakening AUD now testing that support line......

 

[NVP]

and the euro has come again for more sell pips .........beeeeuuuutiful

 

[NVP]

sorry this is fast and furious stuff........but I said my systems had me following euro sells

later
N

 

[NVP]

1.31 being challenged on the E/U .........so is it gonna fold ?

N

 

[be-positive]

1.31 being challenged on the E/U .........so is it gonna fold ?

N

go on be brave ----- make a call mr neil

 

[Jedster2001]

1.31 being challenged on the E/U .........so is it gonna fold ?

N

Too close to NFP for me. Could go any way...

 

[NVP]

14,900..............14,900.......jees !!!

 

[NVP]

unbelievable action.........unbelievable ....

 

[Jedster2001]

unbelievable action.........unbelievable ....

ok, whose feeling brave? So, at what point do you short the Dow?

There should be absolutely massive amounts of money sitting above 15000 on the Dow, including, huge option barriers. The protection of 15,000 is likely to be considerable, but is it going to outweigh the strength provided by the NFP.

So, is it just going to burst though, or is it going to just about get there and then stop.

14984 as I write this...

J

 

[NVP]

have a good evening...wow that was rocking today

N

 

[elisab]

ok, this is an interesting comment and did intrigue me, so I thought I'd actually pull up a chart and have a look. Attached is a simple chart showing the USDMXN with the vix overlaid.

You'll have to excuse me if I disagree with you, I wouldn't call that a "perfect synchronicity".

But, if you think there is a correlation there and you are trading it, then well done to you..

Regards

J

I do not know which graphic program you are using?!. Both Bloomberg and Metastock (attached) show that the 1 month correlation of UsdMxn / Vix is very close to 1 on the spike of volatility and this confirms my previous theory.

 

[NVP]

but surely the vix is pretty close to a lot of pairs ?..........I use volatiltiy indexes on my G8 Forex charts and they are always very close .......

as i said before understanding corrlations and ratios is very important in the forex market but its guarantees regarding profitable forward predictions are somewhat haphazard

N

 

[elisab]

but surely the vix is pretty close to a lot of pairs ?..........I use volatiltiy indexes on my G8 Forex charts and they are always very close .......

as i said before understanding corrlations and ratios is very important in the forex market but its guarantees regarding profitable forward predictions are somewhat haphazard

N

What are the G8 currencies of your indicator?

 

[NVP]

hey all

Bank holiday in UK yesterday so I was on duty elsewhere with family business

will try to tap in this week to the drama of a 15,000 Dow

Yen took the hits last week off of this push.........(see below)......as Jedster says lets see now what happens ..........

.....all this optimism is giving me a headache

N

 

[NVP]

Jedster i'll touch base with you later this week .......I need to get the ideas on paper before the weekend with the Mother-in-law sucks all the remaining intelligence out of me .....

time is short......i'm fading...i'm fading....
N

 

[NVP]

What are the G8 currencies of your indicator?

the clue is on the indicator - top left

 

[NVP]

mornin all

Well as the Dow holds we see the Yen and USD in boyant mood

USD doesnt surprise me .......Yen does ........hmmmmm

if Dow does fold this week ........put your house on buying yen

meanwhile the Aussie duo and GBP are taking hits at the moment so lets see what the day holds :smart:

N

 

[NVP]

sorry gang but that 1hr chart is on a 50ma above so disregard some of the comments

use a 20ma which is my default setting ......yen comments stands .....mortgage the house buying it if dow dumps

later
N