Best Thread Correlation Trading - Basic Ideas and Strategies

[davidsk2001]

Good!! Will be much easier to see it. I still on the study stage and testing your indicator. I haven't found any good entry yet. Need to work harder.

Edited: Care to explain more about Partnership?

 

[NVP]

Good!! Will be much easier to see it. I still on the study stage and testing your indicator. I haven't found any good entry yet. Need to work harder.

Edited: Care to explain more about Partnership?

Hi David

Partnership involves aknowledging relationships between 2 or more currencies in certain conditions .......

remember when you look at the FXCorrelator on any ma setting there is one ting you cna always guarantee

the total value of all the currencies above the zero = the total value of all the currencies below......its a truly ZERO SUM game....

Partnerships are therefore important ..........all the currencies below the zero are in Bear situations .......... all the currencies together above the Zero are in a Bull relationship

taking it further one ten starts to examine are some currencies spending more time with each other in similar patterns and directions ?

remember this is critical in watching for high probability trade signals ........as 2-3 currencies moving together clearly is a momentum play and more important than watching for unrelated currencies contributing to +ve or -ve divergence on the Zero

you can incorporate Partnership plays as much or as little into your strategies ........Remember I mentioned PRIORITIES as a new "p" in the pack ?

in my thread I have always said that YEN and USD on the same side of the Zero can be a partnership move woth trading ............warts and all

AUD and NZD is also a logical combination to play trades ...........

even GBP and EUR moving together I can also find useful to me during the London Session as a guide

experiment and see what is happening and decide if you want to incorporate it .............like everything I say about Trading Strengthmeters....... it is up to individuals to build and create their own strategies over time .........there are zillions of combinations

N

 

[NVP]

morning all

ok here we have the daily and the 4hr both on 20ma

just 2 bars on show ............keeps it simpler ?

watch the currencies in divergence mode ......heres 3 shown

and what do you know ?..

The AUD and NZD in Bear partnerhship mode
The USD and Yen in Bear partnership mode
the GBP and EUR in Bull Partnership mode (CHF ghosting EUR)

I never get to fussed about the CAD......


later :smart:
N

 

[NVP]

a lot of people are asking me why I deserted scalping and lower TF trading

well I hav'nt deserted it......... .I just dont report it here as I havnt got the time !

if you want to scalp then apply the same principles as the higher TF approach I have here

heres a 1hr chart on the 20ma FXCorrelator..... .2 bars showing

here we apply some simple rules

1) only scalp USD pairs
2) only trade the USD in direction of its Zero position (Above = buy, below = sell)
3) only trade currencies on opposite side of USD and DIVERGING !!

thats it ......hunt scalps / trades on your standard systems based on those rules

based on the chart below

the USD is above Zero = BUY IT

we have 3 currencies all looking at Sells .....

the GBP is getting ready
the AUD is already in scalp mode
the NZD is already in scalp mode

.....keep it simple

N

 

[NVP]

here you go a few minutes on ..........

we are attacking the NZD and AUD on the current 1 hr bar right ?

not perfect .........as USD is still drifting south (hurts the USD Buy signal)

but trading is NEVER perfect

Sure the Yen is flying north .......but you have to have some rules ?

leave it to you guys to play ............let me know any ideas

(sure I have ideas and approaches ....but that may not suit you as a trader )

N

 

[NVP]

ok here we are ..........scalped pips

see it does work ............ 7-8 pips available on both pairs in the current hour bar

you wont win every time ...........and this stuff needs tremendous practice and focus ......I could run a full day course just on this area alone........

but again ........the FXCorrelator is a great allrounder and gives you the visability to select and PRIORITISE your scalps ..........

later all
N

 

[NVP]

ok I gotta go ......

new 1 hour bar ...1 clear signal

SELL G/U


later
N

 

[NVP]

ok I know that 99.999% of you newbies want to scalp and earn 20 points an hour (as all the vendors tell you is easy)

and ......heres those 20 pips already below !! :smart:

BUT its not easy !!! (its not)

ok ok.....perhaps one day i will pull something together and provide it for those interested

for the more experienced Traders I may also provide something in the real world regarding higher TF and more reliable trading systems :smart:

hahahahaha

later
N

 

[NVP]

really gotta go ....duty calls ..........

jees forgotten how much fun Scalping is ..........

sometimes
N

 

[davidsk2001]

Great guide here. Will repeat to see and see again to get deeper understanding.

 

[NVP]

Great guide here. Will repeat to see and see again to get deeper understanding.

hurry or all the pips will be gone ........superb run on G/U this morning since my 8am posts .....

Jedster - perhaps we do get back in the lower TF saddle ??

hahahahaha :smart:
N

 

[NVP]

back on the higher TF's

hmmm........not great ......the USD is actually a SELL at this higher Level .....the Euro is or has been an aggressive buy .......AUD is a sell signal

pretty slim pickings in truth.....

later
N

 

[NVP]

jees you guys really like that scalping stuff.......

heres the 1hr TF......see how we stay clear ?

nothing to Sell

later
N

Health warning

This is just a simple way to assess how to trade on low TF's ......we are hooking off a 20ma FXCorrelator.......so its not the holy grail .........you cant get near any chance of a Holy Grail system with lag based indicator .....you need to be closer to the price than this ...so be warned

 

[NVP]

morning all

heres the Daily / 4hr on 20ma

slim pickings ........4hr shows us poss buy NZD .....sell USD ?

N

 

[NVP]

scalping the next hour or so.....using a 1hr 20ma

pretty light as well.........perhaps look to scalp buying U/J in areas shown.....

N

 

[NVP]

see ?

the thing about scaping is not getting in ..its usually knowing when to get out ...!!

later
N

 

[NVP]

scalping is rediculously hard to do...........not for the amateur

and I dont play much anymore ........not enough time to devote to it ........

but it is fun !!!

N

 

[NVP]

hey all

gotta scoot..........duty calls

the USD is not perfect as you can see....we need it pointing up to help matters

nothing wrong with the Yen .....

Good scalping
N

 

[NVP]

see ......another fast bang scalp signal

its fast and furious

N

 

[NVP]

now i really have to go ...........

dont you all find trading hypnotic and worryingly addictive ?

thats why I stopped scalping ..........I never get anything else done ....its addictive !!!

and see how i picked THE CORRECT USD pair to trade ?.....no other USD pair comes close to those pips moved in last 15 mins

(ok the G/U buy moved as well )

later
N