Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

heres the xmas week on a 1hr 20ma FXcorrelator

the USD (green bold) rules my world ........I involve it in probably 95% of my trades....... even though I claim to be a Strengthmeter trader..... and you would expect me to be trading all of the 28 pair combinations pretty equally as the markets move around .......

(or not ?....think about that one dudes :whistling)

the reason from this comes from historical preference,habits and practicality from around trading lower TF's for many years ................the USD spreads are always cheapest ..........although technically taking an E/U and A/U trade in opposite directions should probably cost the same spread overall as 1 E/A trade (try it)

anyway as I move into 2014 and contemplate the pro (fulltime) trading route .......everything I do currently will be taken apart and put back together piece by piece for the forthcoming battles............

this week I would have been using that 20ma setting to gauge what side I traded the USD based on its position above or below the Zero .......(or whatever FXCorrelator derivatives I use these days.....)

so do you decide to miss those big (red) GBP buys in the middle of the week because the USD is above the Zero as well ? ( what - not happy with the 3 Euro, AUD and Yen sells ?)

if the USD is short (Friday) and comes back like a train north........do you sit on your hands for 4 hours and wait for it to get above the Zero before selling the (blue) Euro ? .....(greedy guts after all those lovely sells on the USD ? )

your money ..your call

sorry guys ........thats called Experience:smart:..... and is part of the many things you cannot buy up front in life.......to be the best in this game you have to put QUALITY hours in and be able to understand every nuance and part of your Trading system..... and then be able to execute every part of your system with 100% clarity, accuracy and consistency .............24/7 365 days a year ......do that and you will be a profitable trader

as Albert Einstein said......

The only source of knowledge is experience.

so get practicing !!! :smart:

N

 

[NVP]

heres a bit of fun ...............

but hopefully if the wizard gets asked the right questions about achieving the holy grail we may all understand how to get there and also the true price of success in this business

http://www.trade2win.com/boards/educational-resources/182080-holy-grail-sale-please-apply-below.html

 

[NVP]

hey all

happy new year .......

today i'm taking some family and friends away for a few days to somerset to enjoy the New year celebrations ......looks like I will need a boat to get there though .....

anyway here today ...........I cant be bothered to play ....and volatility is low on the 1 hours anyway

heres the 1hr 20ma .........if you were trading short term signals the green USD is north and indicates hunting USD buys .....take your pick on the sells

only GBP red looks more bullish... so you could hunt G/U buys counting on a fading USD

have a great week.... .i'm back on thursday

N

 

[NVP]

Happy new year everyone

i'm told i had a good evening by the others ........theres always one who has a few drinks and thinks they can dance like john travolta

what the hell - its xmas !!!

N

 

[NVP]

hey all

well ive been watching the market for a couple of hours but in truth this is still a holiday week for me .........so no trading this week .........

if you are trading heres the 20ma on the hourly .........setting the scene for lower TF trading

you see the Green USD above the zero so it sets up for USD buys

you see that amongst others the EUROPEAN Currencies ( CHF , EUR and GBP) have been the main sells over last day or so .....

I look at things this way because ......sure the yen and AUD have got above the USD on the chart and therefore have achieved a few pips on U/J sells and A/U buys

but why the hell chase those trades when clearly the USD is still north of the Zero and bullish on the
20ma ??

..........I keep it simple and take the pips off selling the currencies still falling in value !!!

dont make Forex trading harder than it is already

N

 

[NVP]

morning all

well early hours of this morning the USD on a 20ma 1hr TF (below) got south again .....if I had of been trading ( I wasnt !) I would look to selling USD and buying any bullish currencies

AUD and NZD delivered during aussie business hours .......

will they keep delivering ?

how do I know ?.....trade what you see

later
N

 

[NVP]

morning all

well early hours of this morning the USD on a 20ma 1hr TF (below) got south again .....if I had of been trading ( I wasnt !) I would look to selling USD and buying any bullish currencies

AUD and NZD delivered during aussie business hours .......

will they keep delivering ?

how do I know ?.....trade what you see

later
N

heres an update .........from about 7.30 this morning

Remember I was selling USD ...........so if you stuck to those rules you should have been ok so far .......

heres the results on the 2 Aussie currencies I was watching earlier ......the 5m TF price lines were at 7.30am when I posted

so I am being very very choosy and only trading currencies that were bullish on the 1r at the time

not bad .........aussie D got a little bearish for a while .....but the NZD has been steady eddie

sure other currencies have been more bullish at times....but you have to set Groundrules in this game otherwise you will chase your tail and go insane :smart:

later
N

 

[NVP]

doing a little scalping and shaking out a system I have been trialling today

most of my stuff is still around an adapted FXCorrelator on various settings and scalping USD pairs as I think i have stated here many times re lower TF's

hairy stuff.....i'm on the 1minute TF .........and its absolutely flying with 8 currencies to watch ......I need to reset up some more demo accounts as well so that reminds me as I want to publish here everytime I sit down for a session

I have about 3-4 of my own systems still on manual trial .........all pretty close in settings really ..... but I am getting the feel for each and how good they snuggle on me during faster market conditions.....a little like a fighter pilot ..........just trying to get the controls in place ............

anyway talk again soon
N

 

[NVP]

my scalps have been attacking the USD move up on 1 min TF......

this is against the hourly TF for USD green - which is still clinging to the (see below) zero line

remember its all about setting things up for yourself and getting comfortable .....whatever Ma setting , whatever TF .........ever since i started this thread I have been told consistently its impossible to trade the MA based (lagging) FXcorrelator on the 1 min TF consistently............well we will see about that ...........the proof will be in the pudding over next few weeks as I shake out some final Testing on the derivatives ive developed ..... :smart:

if I cant do it at these lower TF's then is not worth me really going pro.......as higher TF's mean less pips per trade available to bet and less returns available to me to make it worthwhile

N

 

[NVP]

morning all

ok lets keep it simple this week .............if you are playing higher TF's take a daily and show a few bars of the 20ma FXCorrelator

buy anying above the Zero with the latest line diverging , sell anything doing the opposite ...the other converging currencies are passengers until they do the same

so CHF and EUR are sells , CAD is a buy ..............Green USD is a buy

N

 

[NVP]

if you are trading the 5mins and 15mins heres the hourly tf as a signpost.....

20ma and same rules as last post ..............

and we see the USD is bullish (aboove the Zero) ..but thats it ........

NOTHING IS DIVERGING

so dont trade lower TF's at present until someone starts diverging on currenct bar / line

ok have a good day ...........I'm back in the saddle today at work

N

 

[NVP]

if you are desperate heres the 5min 20ma corrie

the signal shows currently scalping the NZD buys into USD ............

see the 2 vertical bars ?

the 6.40am bar is where the USD gets south and the NZD is lead buy north ......standard signal.....

but the 6.15am signal is where my advanced systems detected the buy and got me in earlier ...........just 4-5 pips but thats life and death at this level of accuracy ............this is the system I am still trialling for going Pro later this year.........when I am online and trading (poss tomorrow) I will make calls on it real time ..........

its based on the FXCorrelator but in truth my stuff is a little more advanced and I also use a lot of experience to call them ..............

later all
N

 

[NVP]

hey all

wont be trading tonight..........but heres the day .....ive just noticed these are on a 13/1 setting so i loaded the wrong chart ..........hey whatever .20ma ....13/1 ma ....8ma .........find what works for you


Euro stayed bullish all day ......await more divergence

CAD was a sell for a long time .....and still is if it diverges again

during the day chasing lower TF charts the USD has been both Bull and Bear .....

if you had followed the lead of the 1hr chart on lower TF's for trades you should have made money trading these pairs ........

later
N

 

[NVP]

morning all

heres the 4hr chart for higher TF action ......still on a 13/1 ..........a little faster ........find what works for you ..........I use a lot of settings to get a feel

looks like a convergence phase so hold the weapons until you see signs of more divergence ....USD is bull phase still

N

 

[NVP]

on the 1hr Tf to steer lower TF trading on 15m and 5m ...........again using a 13/1 ma

last 4-5 hours have been good and divergent generally (look at all the diverging currencles) ...........currently a little retracing going on

I am still watching USD buys into any sells that go divergent

N

 

[NVP]

at the moment the 5mins are not going with the 1hourly back on the 20ma ....

so you can chase the USD sells on the 5mins (Yen is a nice buy and in fact the premier buy on the 1hr and 5min)...........

or you simply wait for USDs return to a buy status and perhaps see what currencies are suitable to sell

your money your choice.........this is where experience counts ......you have to make decisions on how you will trade ......

chasing moves randomly up and down will not be sucessful in the long term

N

 

[NVP]

I will try some live calls later but tied up at the moment

N

 

[be-positive]

I will try some live calls later but tied up at the moment

N

All the best

 

[NVP]

i'm still tied up...........heres the 1hr on the 20ma

see ?

the USD is back on divergence this hour .........so buy it

N

 

[NVP]

sorry - just not getting to screens today .......Grrrrrrr