Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

overnights 21st jan

hey all....

quieter night....tag train seems to be slowing somewhat

at this moment gold futures are pushing up on 5m and 1m so helping the fall of usd....

watch for positioning after the 15m 7am bar.....for me perhaps today the Euro will finally
get some relief from the beating its taken over last wek or so......then again ?

correlations working much better today so far.......fingers crossed for later....

humbug.....busy day at work today unfortunately
N

 

[NVP]

Hi all.......

the 'ole 15m 7am bar worked a treat today didnt it

at about 7.20am gold 5m fell thru its 20ma (not shown) supporting some possible usd positivity....which it has duly obliged with ever since ....usd bounced off its days low alongside the Yen (see main 5m chart).........so perfect
correlation there as well

then it was just a case of taking a punt on our europair as the 15m bars were breached down....the E/G pairing didnt breach till almost 8am so no favouratism or trade there early on.........then it was selling G into the E......boy is GBP taking an early beating....euro is actually rising with Tag now.....

No other G8 is falling at present...all in the GBP camp.....

nice......shame I'm sitting in an office and not trading then :whistling
N

 

[NVP]

colin twiggs newsletter..............and my 4H corrie on a 1000/1

see how the corrie on a high MA setting mimics the index pretty closely ?

however.....the corrie can drop down as low as 1m TF's and show all G8 currencies unlike the very limited scope of the currency index charts out there

I gotta say that I am struggling with the positive progress of Sterling........jees

N

PS go back to my post 11 and check out my comments against what you see below....the currency relationships all business as usual here....

http://www.trade2win.com/boards/for...ding-basic-ideas-strategies-2.html#post876536

 

[NVP]

JRP must be lapping todays action up..........

 

[NVP]

pure textbook today

even if you just followed instructions on post 1182 and traded the 20ma breaks on the 3 pairs .....mega pips so far.....:clap:

http://www.trade2win.com/boards/for...g-basic-ideas-strategies-148.html#post1034962

the 5m gold charts 20ma is now a little oversold in my humble opinion .....but has nicely supported the usd rise....with good Yen correlation

if only every day was like this............superb !!
N

 

[NVP]

also notice that Euro is now NOT falling in response to the Tag push upwards....the E/Y and E/U pair profitability is all coming from the Tag half and zero from the Euro which is flat.......

when tag starts to slow down I think that the Euro could finally start some retracement upwards.....

on the G8 the Swissie has started to climb as well so I like this potential eurobuy trade.....need some more movement upwards on corrie 1000/1 5m Euro line first though to confirm.....

N

 

[NVP]

having said all that its not happening yet is it !!!

Tag are still going upwards for probably now the best forex trading day of the year so far on our trio of pairs !

N

 

[NVP]

ok...........euro finally warming up a little as tag fades.....

 

[NVP]

Sorry gotta leave the party now as need to pop out...........will try to join later

I leave the party with most people now tightening stops on the mega GBP sale this morning.....watch the ol;e Euro as I have a sneaky feeling its going to do well this afternoon if Tag turns more .....

JRP should be in fine fettle when he updates....

N

 

[NVP]

hey blancspa...notice you on the viewers....welcome !

i know you are a big captain currency fan.....me to !

N

 

[jrplimited]

Hi N and....

No jokes or jibes at politicians today; so thats it for me then! The bun fight....

GU; Had sell stop at 62142 filled during 08:30 bar and, for a refreshing change, was able to simply let trade run with TS skipping merrily on behind. Ignored first small retrace ending 09:15 and also second ending 09:50 but took that last one as a "watch out" sign so tightened TS and this got "tickled" by yet another failed retrace ending 10:20 as price rolled over once more. Decided that enough time had been spent on this trade so exited after 10:55 bar for 74 pip profit. Definitely done for the day on this pair and also definitely not a day to buy travellers cheques for visit to Disney Florida in summer!

EU; First trade went long (why or why?!) at 08:15 but quickly realised my big error here and SL taken out during 08:40 bar for 18 pip loss. Second trade went short on 09:10 bar at 40658, suffered a medium sized MAE before price turned and went south, then stalled for a while in a tightish range before breaking downwards. TS taken out during 11:00 bar for 21 pip profit. Tempted to short again after 11:10 bar close but didnt feel there was enough "room" for a decent scalp as prior low wasnt far away, so left this pair alone for a possible re-visit this afternoon.

EG; Some great long scalps there for the taking but not for me as my chart setups were all wonky and sort of upside down today, which was annoying but I prefer not to attempt anything when this happens - far better to let things cool down price action wise so chart can settle.

Bit of a dooh moment for me on that first EU trade otherwise one of those fairly rare nice runners.

Trade well and regards,
Simon.

 

[NVP]

hi all back again......

ok.... so Euro has stayed flat but the tag have turned down......hey 1 out of 2 aint bad and it means that buying E into U has pulled a few pippys.....G into U even better !

the 1m gold went back above its 20ma about the same time and now the 5m 20ma as well both supporting the usd fall.....luverrlley jubberlly !

those verts are the time of my last posts/call......today is as easy as falling of a log and can lull beginners into trading and paying over the bucks to make easy money...

for all of you considering this read the posts from yesteday when it was much more difficult to make a buck.......

later......

N

 

[NVP]

Hi N and....

No jokes or jibes at politicians today; so thats it for me then! The bun fight....

GU; 74 pip profit. Definitely done for the day on this pair and also definitely not a day to buy travellers cheques for visit to Disney Florida in summer!

EU; 18 pip loss. Second trade 21 pip profit.


Trade well and regards,
Simon.

Excellent and better than a poke in the eye....

JRP trades in the real world ...not my world of wannabe trader posting here with no real money on the line (well yet anyway)......and hes definitely not a trader who glosses over any losses to enhance his equity curve.......

we try to keep it real here at correlation central .....more than happy for all to comment and join in !

Warmest regards
NVP & JRP

 

[NVP]

Euro dump alert........and things were moving up soo nicely

N

 

[NVP]

boy oh boy is the yen living up to its volatiliy reputation today...maybe not so much against its tag partner which kind of walks the same path... (USD).....but other G8 members are generally getting a real roasting as it cuts a path up and down....

strap yourself in tight whenever you trade this character......big returns but big stop-out risks as well !

.....and if you are a real adrenaline freak trade the GBP/JPY pair........

N

 

[NVP]

where does it hurt ?

its hurting in the GBP area doctor....but also i'm feeling some acute discomfort downunder as well....

(sid james laugh)
N

 

[NVP]

the markets sure are unhappy bunnies today eh....

heres the carnage on a 15m corrie 1000/1 special index....

all those unbold dudes are equities and comodities (incl gold)

the sky fell in today driving the tag upwards and we hunt for other G8's to trade against them in this
scenario..............the bold red GBP shown is as good as any

interestingly the usd did not rise as much as it should have done.....but yen sure made up for it....on this point with usd a little more bearish than anticipated - if the markets now start to rally (espc Gold/ commodities )....a fast fall could be on the cards.......and look at slide 2...usd is right on a major support line for the day.....if it breaches...fill your boots....

Aussie D got hit worse though (not shown here) as those interest rate unwind trades take place.....ouch !

N

 

[NVP]

goodnight.............sleep tight !

 

[NVP]

mornng...........

actually I woke up early today......so (as you do) I listened to an ISE seminar on intermarket relationships by jack crooks.......(see below)....hey dont we all do this ?

yep - not bad at all and opened up some new thinking for me to persue re correlation......listen to the lot and you will meet some old corrie friends we discuss a lot but also some new angles......Q&A was good as well

he menioned what potentially drives the Eurozone currencies so I will be definitely looking at that

I will have a look at what else he does as I was quite impressed...

N

 

[NVP]

pre 7am overnights 22 jan

here we are......after the carnage yesterday looks like Europair had a quiet night and the tag have fallen a little............not exactly a collapse though so perhaps another tag rally is brewing when markets open ?

also watch that narrow range that Europair are in for breach opportunities

Nikkei was flattish through the night so that didnt influence the fall ...

hmmmmmmmmm

N