Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Hi N and all else,

GU; Really strange morning. First trade entered long at 08:05 bar and found myself in a sharp retrace which took out SL on 08:15 bar for 21 pip loss - ouch!

Waited to see if that decline would accelerate but price reversed and started rising again. Second trade placed buy stop at 61488 and this filled towards end of 08:45 bar, hovered for a bar then shot up and then hovered for two bars and shot down again! Hells teeth. Stayed with trade as it slowly climbed up again then watched a frustrating drop down at 10:15 which just about ended up where I was filled. Couple of bars later it rose once again then did another drop so I decided to simply get out after 10:50 bar for a 6 pip profit as two hours and lack of direction were not a good sign.

EU; First trade entered short on 08:15 bar which hardly moved then price crept upwards for a couple of bars. came down again then went back upwards and 08:45 bar took my SL out for 18 pip loss. Second trade went short on 09:15 bar and yet again that naughty price turned around on me and skipped away northbound and 09:50 bar took out SL for another 18 pip loss. Two losses on the trot for me means leave this pair well alone!

Well and truly stuffed this morning but thats the reality of this trading thingy for you - trade well and regards,
Simon.

hey mate

finally got a chance to look at scene yesterday......corrie stylely !

heres the 1minute with all 4 enties shown....I would recommend anyone serious in this business takes apart EVERY trade they make...good and bad....its what will make you the best u can be.....

2 G/U buy trades are red and the 2 sell E/U trades are Blue

as we are (now) painfilly aware the usd was relatively flat during the london opening session........look at the green line.....if USD has not got much pulse then every trade taken is relying on the other currency to do most of the work.....and deliver all the profits.........

Trade 1 (left vert)......nice move up on GBP (supported by Euro) and with USD actually falling.....jrp stepped in on the small retrace....an then ouch.......taxi..

Trade 2.......europair falling and Ero definately falling from recent support levels....usd was neutral but yen was a screaming buy that one would hope would rub off soon on USD......nice scenario.........on entry things rapidly stablised and then eventually
euro drove up as the tide turned....(tag up europair down)

Trade 3 (buy G).....picked up as Europair were moving up nicely with yen turning down........GBP and Euro continue upwards, yen decides tofollow them for a while and usd does an impression of a snooker table...... actually JrP did well to squeese some pips here......

Last trade (Sell E)...............Euro, GBP (and yen?) were chasing down fast.....USD was still comatose though.....on the entry as if by magic the euro turns upward and gallops towards the usd that remains in the world of nod.............taxi

see what this forex world is like......brutal and tomorrow calls like this (with hopefully a pulse in USD) will make a lot of money.....oh well on with the show !!

N

 

[NVP]

heres todays action.....got to get in earlier today so you all know the 15m bar drill that i will post later...not real time....sorry

liveler day today already.....overnights were brisk and look at the carage on the nikkei........jees !!!

Gold futures falling most of night as well......

god !........ look at the lovely patterns overnight...buy tag sell Euro........... !

interestingly GBP took a long time to breach the overnight channel.....and it was upwards so the attack on it from rising TAG all night was not a success at all (Clue)

watch the 15m bar as usual with breaches and price action blah blah......oh yeah.........and strap yourself in......

later....
N

 

[NVP]

that 15m period has really got the market thinking what to do next hasnt it.......just be patient and eventually the fun wil begin again.....

much later...

N

 

[Lord Flasheart]

can you kindly post the 15 bar drill please with a brief explanation

 

[NVP]

can you kindly post the 15 bar drill please with a brief explanation

hey julian !

my spoutings on the 15m bar started here.................

http://www.trade2win.com/boards/for...ing-basic-ideas-strategies-78.html#post997758

basically trade the breaks of the 15m bar range created.....but be careful and look for the correlation confirmation we preach here......also I mentioned an additional twist earlier this week on the BFforex advisor video that perhaps if this coincided with a breach of the overnight session that was a double endorsement.....

nothing certain in life though..............well except tottenham never finishing in the top 4 of premier again.....(I can but dream though )

N

 

[NVP]

interesting morning eh..........

a cheeky G/U dummy move just above the 15m bar then el collapso for GBP as it descended through the morning so far against the others......shame about the whipsaw on the E/G as again thats been kind since 15m bar as well buying above the 20ma

look how tight E & U have been all morning....blood brothers ?

yens on fire (see next post)

golds been generally below the 20ma on 5mins all morning so USd has been holding up as expected........

interesting move on the ole GBP as the GDP was positive and we did inch out of recession (albeit first in last out)....by the look of it though this was obviously treated with derision by global Forex traders

Later........
N

 

[Lord Flasheart]

I was beggining to like you until you mention your team,im a womble myself and have many memories of the htrashings we gave you especially in the cup

 

[Lord Flasheart]

oh 1st 15 min bar.Can be unreliable. I will look again using corrolation

 

[NVP]

Go yen go !!!

jeeessss..................this is the 4h standard 1000/1 corrie ....look at that Yen action..............

I dont use the 1000/1 for crossovers as its too high an Ma....but Yen is about to retake the mantle of top dog from Aussie D...........

market crash hats anyone ?

will BOJ be brave enough to step into the market ?.....possibly overnight when we are all sleeping later......

N

 

[NVP]

I was beggining to like you until you mention your team,im a womble myself and have many memories of the htrashings we gave you especially in the cup

how is milton keynes these days ? (ooooooooooooo) :-0

N

 

[Lord Flasheart]

lol there are no wombles in Milton Keynes,just concrete cows, roundabouts and ugly birds. Just hope you are a true football supporter and understand that what we have done is the way forward for all football. We will be back in the league within 3 years,could be next season.Keep thinking of the rubbish we sold you.Scales,sullivan,thatcher etc,etc. Would like to see you finish 4th,cant stand arenal ever since they played a whole season with no english players other occasionally walcott. That should never have been allowed

 

[NVP]

oh 1st 15 min bar.Can be unreliable. I will look again using corrolation

yep.....it certainly can..........this correlation stuff is a fuzzy logic approach.... we look for some nice warm confirmation on the tag direction from the markets and commodities.....then take a punt on the E or/and G against them.....

if anyone can offer up some correlation clues on which one to chose I would be greatful......

apart from news (obvious)....my other thoughts are Treasury/Gilt market spreads on the Eurozone.......the divergences on some of the weaker EU countries vs German bunds can give some clues as divergence should equal a Eurodump like last week

Cheers
N

 

[NVP]

lol there are no wombles in Milton Keynes,just concrete cows, roundabouts and ugly birds. Just hope you are a true football supporter and understand that what we have done is the way forward for all football. We will be back in the league within 3 years,could be next season.Keep thinking of the rubbish we sold you.Scales,sullivan,thatcher etc,etc. Would like to see you finish 4th,cant stand arenal ever since they played a whole season with no english players other occasionally walcott. That should never have been allowed

I am not a true fan...........last time I got to the lane was in about 92/93 to see Gazza hoddle and linneka play.....i'll leave it there really.....

N

 

[Lord Flasheart]

Im long gbp/usd 16120 s/16108

 

[jrplimited]

Hi N and everyone else,

Bit earlier for a change. After yesterday's carnage I thought a little bit of caution should be the "thought of the day".... Hmmm; me plus caution is rather like a politician plus the truth! Onto this morning's bun fight:-

GU; Entered long on 08:30 bar at 62442 and rode a brief upward move of nearly 18 pips which allowed me to drag SL up to BE, then encountered that vicious looking 08:45 down bar that prompltly took me out for nothing pip wise. Watched momentum slow down after that then start to wind itself up again so placed sell stop at 62158 and this filled during 09:15 bar. Had to wait an agonising two bars before that large 09:30 down bar exploded into life and carried me downwards. Ignored 09:50 onwards shallow retrace and price rolled over again to break previous low although this time momentum was a bit weak, so took the hint and closed out after small 10:40 up bar for a whisker under 100 pip profit. Thats me for the day with this pair.

EU; Noticed this pair let off a bit of steam earlier on and wasnt sure how much energy was left for this morning's session, however gung-ho in I go! Opened long on 08:05 bar and price fell over one bar later and took my tightish SL during 08:30 bar for 16 pip loss. Tempted to reverse position on same bar but held off and instead went long again on 08:45 bar at 40978 and saw that weird double ended 09:00 bar try to test SL (and nerves!) before moving up slightly then falling back down again for another prod at SL where second trouser change needed pronto! Price then bounced along very erratically and after third test of SL at 10:05 bar I decided that trouser stocks wouldnt tolerate this trade any longer so exited for 12 pip loss. Two losses and adious for me here, this pair was going nowhere unlike my frequent trouser changes.

EG; Chart up and working on this pair now after yesterday's fiasco. First trade entered short on 08:30 bar and got myself stuck in a retrace where 09:00 bar took out SL for 15 pip loss. Next bar gave me a signal so went long at 09:10 at 86926 and price moved up a few pips then did a shallow two bar retrace which had me thinking here it goes again, then whoosh! Up it shot on 09:30 bar to save me from a double whammy. Momentum slowed down after this then accelerated for a couple of bars and then started to crawl sidewise so I exited during longish tailed 10:55 bar for 46 pip profit. Didnt feel that this pair would have any more mileage this morning so left it alone.

Couple of nice blow-outs there but EU was a monster to try and trade this morning - trade well and regards,
Simon.

 

[NVP]

Hi N and everyone else,

Bit earlier for a change. After yesterday's carnage I thought a little bit of caution should be the "thought of the day".... Hmmm; me plus caution is rather like a politician plus the truth! Onto this morning's bun fight:-

GU; a whisker under 100 pip profit. Thats me for the day with this pair.

EU; 16 pip loss & 12 pip loss. Two losses and adious for me here, this pair was going nowhere unlike my frequent trouser changes.

EG; 15 pip loss & 46 pip profit. Didnt feel that this pair would have any more mileage this morning so left it alone.

Couple of nice blow-outs there but EU was a monster to try and trade this morning - trade well and regards,
Simon.

hey mate....

that G fall give you a net around 100 pips for the morning session......welcome back

as I commented earlier the E & U suddenly became bosom buddies making trades a disaster..........

N

 

[Lord Flasheart]

Taken 1/2 off,had a miracle not to be stopped out

 

[NVP]

Taken 1/2 off,had a miracle not to be stopped out

hey mate

we get a lot of newbies on this thread thirsting for the corrie grail......try to expand why you are entering a particular trade to help them......I dont mean my endless ramblings - just a couple of bullet points....helps them to see what to look for ....

N

 

[NVP]

careful out there pardners ............its whipping up a storm at present

not bad for a range trade perhaps ? look for an extreme on E and G vs an opposite extreme on Usd in the ranges being seen.........

ok theres a upwards slant on the USD but you get my drift !.......so based on what you see GBP could be about to retrace down a little...BUT Usd is on a current upswing.......ideally usd would be in a trough to take the punt.....comprende ?

N

 

[NVP]

sell G/U below .6117........gold is falling finally