Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

at the monment this second ?...........

I like Yen buys
AUD must take hits soon

later
N

 

[NVP]

naturally GBP getting hits at the moment but it may be a little oversold now on low tf's ..................

I dont recommend chasing it below 1.67 until it retraces a little

N

 

[NVP]

i still wouldnt chase the 1.67 down ...........but its happening it seems

 

[NVP]

at 6715 it was more a decent play ...........not now

N

 

[NVP]

6694 ....................all hail G/U scalp sells .....

to risky for me ........I had missed the bus

N

 

[NVP]

later all - early calls to make

 

[be-positive]

at 6715 it was more a decent play ...........not now

N

Morning Neil when you retire and have plenty of spare time why not have a LIVE :smart:skype broadcasting event be it (daily or hourly) with possible alert signals that are showing up on your Forex Correlation charts

 

[NVP]

Morning Neil when you retire and have plenty of spare time why not have a LIVE :smart:skype broadcasting event be it (daily or hourly) with possible alert signals that are showing up on your Forex Correlation charts

hey B

clearly with no employment from july this year I am contemplating some possible transitions into F/T currency trading and training as well

still work in progress as its a vast leap to move into these spheres....... and i am under no illusions of the challenges , time / effort that will be invoved .....I have dipped my toes in the water before and its hard

sure - I have a lot of years of research, bags of new ideas and 13 years of experience in strengthmeters but thats just a start ........it guarantees nothing to me in such a venture

anyway still only at at 55 a couple of interesting things are now brewing re some corporate consultancy opportunities so thats my Priority

when i fully "retire" from corporate life Trader/trainer is a no brainer ............as true 100% retirement is not an option for me .............I cant do that stuff.....the brain will go to mush.......and i'm not exactly einstein now !!

watch this space
N

 

[NVP]

the AUD is a revelation ...........I personally see it as overbought and the London session usually shakes down any excesses that the asian session delivered for such currencies ..........what this means is more the poor showings of our European brothers - at present anyway so far today

N

 

[NVP]

6694 ....................all hail G/U scalp sells .....

to risky for me ........I had missed the bus

N

6690 the bottom then ...........I wasnt toooo far out .........(well using the G/U as a benchmark) ......missed 1 decent scalp I suppose

N

 

[NVP]

Morning Neil when you retire and have plenty of spare time why not have a LIVE :smart:skype broadcasting event be it (daily or hourly) with possible alert signals that are showing up on your Forex Correlation charts

and when it finally does happen dont expect too many bells and whistles ...................people will probably be surprised how little my support mechanisms are ............its all about momentum , relative strength , pattern recognition and simple probability based trading

black boxes will not be on the menu :smart:

N

 

[NVP]

europeans strengthening now ........some nice recent buys into yen and USD..........AUD must start folding soon

N

 

[NVP]

back again ............

I am watching the USD ...........I feel that its due a bull phase on lower TF's

GBP and NZD are the sell candidates .............GBP has already shown its hand but could easily go much more

N

 

[NVP]

watch

NU below 8497 and AU below 9294

could be some big moves if the europeans strengthen alongside USD

N

 

[johnclark7889]

Correlation Trading

Currency correlation tells you if the two currency pairs are moving in same direction or opposite direction and how strong is that the correlation between those pairs. If two pairs move in the same direction very strongly then you should be avoiding taking a long (buy) position for one pair and simultaneously short (selling) position for the other pair and vice versa. This is the first use.

Second use is that it is possible that the long term average correlation is quite strong. For example 2 pairs generally move in the same direction quite strongly. At times you may notice that suddenly that correlation has changed drastically. May be one pair is moving up very fast but not the second. Considering the longer term history you may like to buy the second pair because it may catch up with the first or the opposite i.e. short-sell the first.

 

[NVP]

hey j

Currency correlation tells you if the two currency pairs are moving in same direction or opposite direction and how strong is that the correlation between those pairs. If two pairs move in the same direction very strongly then you should be avoiding taking a long (buy) position for one pair and simultaneously short (selling) position for the other pair and vice versa. This is the first use. - currency pairs ?...or individual currencies ? - big big difference

Second use is that it is possible that the long term average correlation is quite strong. For example 2 pairs generally move in the same direction quite strongly. At times you may notice that suddenly that correlation has changed drastically. May be one pair is moving up very fast but not the second. Considering the longer term history you may like to buy the second pair because it may catch up with the first or the opposite i.e. short-sell the first. ..........again pairs or individual currencies ?

some good comment here.........thanks

N

 

[NVP]

watch

NU below 8497 and AU below 9294

could be some big moves if the europeans strengthen alongside USD

N

jees ......I spoil you guys ............shame about the spike on AU though

sorry this call wasnt on the standard 20ma playlist .......well at least the NZD was below the 20ma I suppose ............

the standard rules didnt support that trade at all ......

hey my ball, my rules.....

later
N

 

[NVP]

morning all

usd is still south.......run with it

the GBP is on a massive retrace play north .........may be worth following but I would personally prefer a little consolidation first before re-entering.......(unless you are already in )

N

 

[NVP]

the GBP has had a dire week in truth to date.........

look at the time spent sub sero ..... and indeed the big divergence this week of red GBP below the line using a 20ma 1 hr tf chart

its actually pushed north today ...........could now be a nice consolidated run as traders now take profits on their GBP shorts this week

N

sorry - couldnt resist the pun

 

[NVP]

AUD is the bull play at present .............