Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

heres the 1 hours ..........

naturally from the 4 hour chart we see the 1 hour similarly with USD as a big buy.........in fact its the top valued currency ........and AU was a major beneficiary as you can see....... 50 pips through the night

hmmmmmm..........USD doesnt like being top or bottom of the pack ..........I wouldnt get too aggressive on further USD buys in truth this morning on lower TF's

but then your money and your choice :smart:

N

 

[NVP]

heres 5 hours on ........

as predicted the USD is still sloooowly fading south ............and finally other currencies have got back above it ...........doesnt mean its a sell on the 1hr yet though (needs to cross the zero)........just not too much momentum supporting any decent buys on it ....

naturally trading is happening on lower TF's ....I'm just saying I would wait on next USD buy opportunities and some USD divergence north on this 1 hour chart

N

 

[NVP]

heres th 5min TF

see the USD finally getting north again ?

thats a hopeful sign .........USD rolling back into the 1 hours bull signal

possible buys again now on USD ............shame that Red GBP sell was earlier than the USD got above the zero here ......

or was it ?.........could we have traded it still ? ........I think so !

N

 

[NVP]

usd storming north again .........not bad at all

N

 

[NVP]

usd stays north on the 1 hour TF ........

AUD got hammered in asian session and GBP looking bearish now


N

 

[NVP]

jees tough day in the trenches on this particular strategy

USD stays a buy on all lower TF trades whilst the 1 hr still above the Zero

not much on offer if anything ..........those GBP and NZD charts show the dearth of oportunities

on lower TF's the yen buy earlier was a peach .........but not here whilst the USD was still sitting a a buy

ok the USd has got south but its not exactly a confirming trend is it ?

leave a little

N

 

[NVP]

hey all

I have talked about the dow / USD / YEN pattern many many times and its in my instructions/links in the signature area below

its just one of many things you can play with when learning the ropes on strengthmeters and corelations ..............experiment and see if you like it

heres todays signals

if USD and YEN are same side trade them against other currencies - regardless
if Dow is above the zero sell the USD or Yen whoever is below the Zero
if Dow is below the zero buy the USD or Yen whoever is below the Zero

not bad advice at all on belows 1hr Tf :smart:

N

note - this is not the way I trade myself ........I have other strategies that work better based on the specific market conditions .........

the TRUE beauty of using forex strengthmeters is to see the WHOLE market and react to what is happening ...........thats the EDGE I have found after 11 years research and training

 

[NVP]

mornin all

heres the 1 hour on a default 20ma setting .......

USD is a litle fickle swinging down and up overnight.......current lead is a buy signal for lower TF's

so buy USD it is ........

N

 

[NVP]

hold the bus ..........i'm scalping and big move in progress ....4hr later

 

[NVP]

jees it had been quiet for about 20 mins on the 1 minutes ............then bang !

ok heres the 4 hours .......this shows a buy USD bias as well for trading highr TF's

later
N

 

[NVP]

g/U ...thank you god .....

 

[NVP]

sorry been bogged down elsewhere ........will try to get back later

n

 

[NVP]

hey all

sorry away at a wedding this weekend ..........may pop in later tomorrow

N

 

[far_spam]

fxcorrelator in MT5?

Hi NVP,

Great indicator you have here and I would like to play around with it on a strategy tester. MT4 doesnt do multi currencies in the tester but MT5 does.

Do you happen to have an MT5 version:?:

 

[NVP]

Hi NVP,

Great indicator you have here and I would like to play around with it on a strategy tester. MT4 doesnt do multi currencies in the tester but MT5 does.

Do you happen to have an MT5 version:?:

nope........feel free to adapt the Mt4 version though .........its available below in the links from the signature area

N:smart:

 

[NVP]

mornin all .........

heres the 4hr TF for last 2 weeks

you can see the green USD ......it had a nice bullish week last week and now looks like its moving slowly into bear mode .......

but thats history ...........and the past doesnt predict the future ....or does it ?

N

 

[NVP]

dropping down heres the 1 hour .........thats a nice benchmarker for me re viewing lower TF's and trading opportunities ...........

you can see the green USD indeed has already had a bear day yesterday ........but now punching back north

I would advise traders to observe the trend and look for usd buy opportunities

regarding othyer currencies ...........I would use the lowetr TF indicators (like the 5min) to assess momentum plays on falling currencies .............

at his higher 1hTF level all you can do is perhaps watch the currencies already below the Zero and play further sell moves as USD rises ................looks like the

grey CHF
blue Euro
Yellow Yen
Brown CAD

N

 

[NVP]

hey all

well the green USD came back south yesterday and stays on that track

so I would advocate hunting USD sells until it changes on lower TF's

GBP pushed everything south earlier with the big move

N

 

[NVP]

nice nice nice at the moment as the 5mins supports the hourly

USD is selling and we are picking up pips buying the Europeans


N

 

[NVP]

i'm tempted to play a USD retrace selling A/U below 8871......hmmmmmmm