Best Thread Correlation Trading - Basic Ideas and Strategies

Re: journeys end ?

Hi N,

Lol there about the euro rouble. You are spot on as its not just Greece weighing down on the ECB's decision making right now but also a few "sub-first tier" countries like Spain and Italy plus a basket load of monnow tier contries - mainly from the ex Soviet bloc.

The markets "see" this just as they also see our very own Great British Peso as very weak short to medium term candidiates, take a look at the spectacular GU move down last week.... Fun and games for all over the next few months and its going to be a case of spot the donkey when trading any G8 pairs.

Personally I'm going to be watching the USD closely as gut feeling tells me there is some horrific financial news sitting somewhere in the pipe line.

Hope you enjoyed the weekend,
Simon.
 
Update 31st Jan – Ready for the month of Feb

Well we start off with the US markets:

Dow Jones LONG TERM Strategy which is long from 8100:

Regardless of our selling in the markets of the last few weeks our LONG TERM strategy still remains long from 8100 from April 09 and currently has a running profit of 2000 points. However this strategy is close to turning but for now you have to respect the signal that it is giving which Is Long. Not by any means is this a new signal, it has been long from April 09 and all this means is that the LONG TERM trend is still LONG for now.

Dow Jones Daily Trend System is short from 10661:

This system went short on the 19th of Jan and is showing a gain of 600 points! This system is still running short and although the move can easily double likewise entering at this stage does not give the same risk/reward ratio as it did when the signal was triggered,

Dow Jones Short term Strategy is short from 10667:

This system went short on the 20th Jan and is showing a gain of 600 points! This system is still and can easily double the move south however it is not advisable to enter this trade as a fresh signal as the risk reward is different from when the signal was originally triggered.

GBP.USD Long Term strategy is short from 16413:

This system went short in Nov 09 and is currently showing a gain of 450 points. This set up is showing the potential to take out 15705 which could speed the move south. The trend is Down!

GBP.USD short term strategy is short from 16303:

This system identifies the very short term trend and is short from 16303 on the 20th Jan and is currently showing a gain of around 350 points.

EUR.USD Long term strategy is 14868:

This strategy went short in early Dec & is currently showing a massive gain of around 1000points!
This strategy is not showing any indication of turning and it could well move south more aggressively.

Oil Daily trend system is short from 8215 from early Jan 11:

This strategy is nearing to a massive 1000 point gain! This market is once again not showing any indication of turning and it could well slide further or enter a phase of whipsaw

FTSE100 Daily strategy has been short from 5481:

It went short from 15th Jan and is currently showing a gain of around 340 points. Again the market shows no sign of turning and would take a strong move to nullify this signal!

Conclusion

All the signals above are giving a gain of 6340 points! If you exclude the LONG TERM DOW signal then the recent signals above are giving a whopping gain of 4340 points!

Firstly these gains above are not hypothetical.

Secondly these gains above are not given from 20-50 different markets!

Thirdly these gains were represented on T2W live as the trades were taken by my strategies

The US markets were sold at levels which didn’t make sense to many at which the talk was 11000 Dow not 10000 the level which I wanted to talk about.

Currently all strategies are short unless the markets give dignified moves which change the direction of the markets. For the moment, don’t discount bounces but equally don’t discount doubling the moves south. Ironically don’t discount a total reversal higher! By these statements your thinking ‘User’ has stated it all! Yes I have, as I simply don’t care which way we head and nor do I negate any possibilities as I’m happy to follow the trend using my strategies which use many defining technical analogies.

Kind Regards
USER

PS. Please carry on private messaging or emailing ([email protected]) me with your questions and queries as I’m always happy to help all as this gives me a satisfying feeling like no other!

(y)



thanks user.....impressive numbers indeed

please could you expand on the system that you use as this thread is here
to primarily promote, share and discuss market correlation in forex.

please also state if you are a seller of systems or forex training...I have no problem with this....just like the viewers to know whos posting

we use market infomation to try to support forex trades.....so for example I would be sceptical to recommend mixing markets (eg forex with the Dow ) as Dow is closely correlated to the yen (and therefore more loosely the dollar) as selling dow will generally be same as selling the other G6 into the tag team......uness you are recommending more sophisticated basket trading methodologies to exploit this ......

best wishes :
N
 
overnights....1st feb !

morning.....:sleep:

mixed night then.............Euro had a good one....tag have been up and down already , and GBP has been flat...(so far)............so most active goes to the yen that correlated perfectly (NEG-) to Nikkei overnight....

watch the 15m bar as usual.....and since we have USD and GBP with relatvely low volatiliy overnight the breaches of their ranges wil be very crucial......(epec GBP)

later..
N
 

Attachments

  • 1st feb am.jpg
    1st feb am.jpg
    129.5 KB · Views: 129
hmmmm

a little market strength today and I think the yen wlll retrace....its had a nice recent run but perhap time to put its feet up for a while ?

if your not sure of what to buy theres always the USD....:sneaky:

(GASP - the other TAG member NVP...you said never to do that.....:eek:)

hey ......the best rules are there to be broken....

N

and if your not afraid of spreads....then selling yen into Swissie is always an option
 

Attachments

  • 4h corie 1000 1 1st feb.jpg
    4h corie 1000 1 1st feb.jpg
    130 KB · Views: 108
TAXI for mr pound.......

lord oh lord the markets are rocking today................I cant follow news much re work so god knows whats happening :cry:

the USD has stayed inside its overnight range so not exactly rocking.....yen is bouncing a little but euro and GBP are getting the biggest divorce in history !

see how GBP eventually breached its 15m bars and also its overnighter on the 5m corrie 1000/1......beautiful (y)

secret is to let the breaches confirm a little before entering....(easier said than done)

not shown....

Aussie D is falling as well like GBP and amazingly Swissie is moving up alongside euro and not standing on the fence like it usually does......an interesting day in markets when mr boring wakes up a little ;)

N
 

Attachments

  • GBP RIP.JPG
    GBP RIP.JPG
    122.8 KB · Views: 133
Last edited:
USD is right on the overnight resistance level.......prime for some consolidation back down ?......I suppose Trade it against euros continued climb ?

right on the 1.39 at the moment

hmmmmmmmmm

N
 
this is what I mean.......will usd bounce back down ?

Gold will give the biggest clue as its extended down on the 5m chart (shown) and we need to see if its gonna retrace upwards a little.....

N
 

Attachments

  • breach or no breach.jpg
    breach or no breach.jpg
    132 KB · Views: 115
now if USD turns up to try to break the resistance its only half way down in the range so it will not run out of steam if it attacks this time.....
 
nope gold is pushing up so no buying USD yet.....but gold is not movign usd down much so my bet is USD will rise soon when gold starts to drop again...euro still movign up so not the card to play if USD starts going north again .....sell AUD or GBP.....
 
USD sitting right in middle of daily range so forget it ......the excitement is always when a currency gets within say the final 10% of the range band as this is when things become more interesting......and yuo can start to surmise will it breach or will it rebound off the resistance.....traditionally USD, Euro and even AUD are nice for this.....yen and GBP are normally to volatile to behave to use the range bands (horizontal ones or the more dynamic Envelopes / Channels)

N
 
usd will not be moved down despite the rise of gold......methinks it wants to move north soon....
 
sell GBP now......

.5867 ish....s/l at 87 and put on crash hat....

N
 
come out .....usd has swallowed the golds rise finally .......Doh !!!
 
right...usd is going to test the bottom of the range soon....Aussie D is recieving the pips from this
 
gold just keeps going.....fantastic dynamics going on as USD is not falling much....
 
Top