Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

back to the scalping ...........usd wont die ...........its still bouncing north.......or is this the last rites ?

N

 

[NVP]

scorching hit on GU sells............missed it

 

[NVP]

looks like the usd is going through the last rites of its bull action in last few days....we could see some selling through to weekend ............lets see

N

 

[banawa]

correct

without getting into detail or vendors (as that's not fair on them) my main observations are

1) most stuff is just the basic FXCorrelator (available here below for free) with a few tweaks and fancy whistle's.........theres no real originality really around ive seen .....and nothing worth hundreds/thousands of pounds of punters money in truth.....certainly not for the software on offer

2) Sure some of the vendors will add some value added .......but its not rocket science really .....................the real value in my opinion is utilising established patterns and signals from the 7 key things below ...........I still havnt seen anyone truly leverage this in the trials and tests I have been able to conduct ...or even mention them in truth

3) the main thrust (disappointingly) for all this money is the simple adage of trading diverging currencies with the trend and fading converging ones ..............jees .........do not pass go .....do not collect £200

4) even more disappointingly I see a lot of the systems simply selling overbought currencies and matching them to buying oversold currencies on the charts ..........they will tell you the currencies must retrace soon and that's the secret of the system ...........hmmmm

sure the magic works sometimes ........and if you search my very long thread here(search / type in converging or diverging) I talk at length about using the converging play ..........warts and all .....warts and all ....

if you hang your complete strategy around this premise you will fail over time .............sorry but just my humble opinion............a currency registering a high divergence reading (especially on lower MA settings) does not make it an automatic retrace trade ........

look at any paid services with objectivity and I would always recommend you take a long long look and play with my free offering here first to get the idea of how strengthmeters work.....at least you can then have more idea of anything you are paying for


good luck !

N

correct you are right they ask a lot of money but nothing fancy your free version even better now please on another subject i do have an indicator or love to have an alarm on it anyone you can refer pl to do it in a professional way thanks friend

 

[NVP]

ok got to go out .............if I were a betting man I still say usd is looking to fall now gradually into the weekend .................aud looks poised for some buys .........

i'd look at buys over 9280 in next hour or so ..

later
N

 

[NVP]

correct you are right they ask a lot of money but nothing fancy your free version even better now please on another subject i do have an indicator or love to have an alarm on it anyone you can refer pl to do it in a professional way thanks friend

hey B

how are you my friend ............good to see you are still a fan

let me see what we have re alarms ............the problem is the new versions of Mt4 / Mq4 need a little rework in some cases and my programming is not good and my time is limited ...........I thought we had an alarm version in the thead somewhere ?...............i'll take a look .........try this link below ............djenky did some programming for me in the past and added an alert on this version ?


http://www.trade2win.com/boards/for...-basic-ideas-strategies-1101.html#post1606784

N

 

[NVP]

i'm out the door....but below 6580 sells on gu look tempting

 

[banawa]

thanks

hey B

how are you my friend ............good to see you are still a fan

let me see what we have re alarms ............the problem is the new versions of Mt4 / Mq4 need a little rework in some cases and my programming is not good and my time is limited ...........I thought we had an alarm version in the thead somewhere ?...............i'll take a look .........try this link below ............djenky did some programming for me in the past and added an alert on this version ?


http://www.trade2win.com/boards/for...-basic-ideas-strategies-1101.html#post1606784

N

thanks so much friend take care

 

[NVP]

ok got to go out .............if I were a betting man I still say usd is looking to fall now gradually into the weekend .................aud looks poised for some buys .........

i'd look at buys over 9280 in next hour or so ..

later
N

in last hour or so I see that finally usd did get short.........


AU got to 93 in fact so a few pips there were available eventually if you played the cards right

N

 

[NVP]

i'm out the door....but below 6580 sells on gu look tempting

it never got there.................gbp and usd in fact are tracking each other at present so no real moves for me ........a little buying on GU from usd's falls..........but really its been cad and AUD where I was hunting the buys :smart:

later
N

 

[NVP]

Europeans all pretty weak still..............slim pickings on these if selling usd

 

[NVP]

Originally Posted by SpreadDoctor View Post

got yer NVP. I was going to ask you a question about currency baskets. I wanted to create a custom indicator that was the dollar index (minus the cable) and a pound index (minus cable). This would then give me an idea of the dollar and pound strength with cable taken out of the equation. This could be useful for me as it would help me spot 'fake' moves in cable. I saw this software that allowed you to pull MT4 quotes into excel, I could then create my own custom basket and plot it. just havent got around to it. do you think it would be easy to do?


http://www.trade2win.com/boards/dis...ert-retail-forex-trader-3268.html#post2378540


hey SD


lets expand the discussion here......my immediate response is to load up my basic indicatorin links below and simply exclude the other currencies on the settings ....then you are watching pure GBP and PURE usd ...warts and all

heres the fxcorrelator with just gbp and usd on it on a 60ma setting which is a nice setting enough to remove most ma skew .............see the biggest move when both GBP and usd went in opposite direction today ?

N

 

[NVP]

and then you are into my world ..........pair charts to me are secondary to the equation and only really used for placing trades ............I just follow individual currency patterns and moves .

 

[Abdul2012]

Hi,
Good posts for today NVP.... Thank you.

 

[NVP]

ok got to go out .............if I were a betting man I still say usd is looking to fall now gradually into the weekend .................aud looks poised for some buys .........

i'd look at buys over 9280 in next hour or so ..

later
N

jees the usd has been a lovely sell since around 11am now in reality

e/u has come up 20+ pips since and A/u got to 9310 recently .......

only gbp and the Yen are not joining the party .........nice sells alongside usd

excellent excellent session today

N

 

[NVP]

Hi,
Good posts for today NVP.... Thank you.

thanks ....

the markets were kind today ......and traders should have made money scalping and short term trading ..............

I would recommend traders seriously review their short term trading techniques if they lost money in this market today :smart:

N

 

[NVP]

looks like the usd is going through the last rites of its bull action in last few days....we could see some selling through to weekend ............lets see

N

lets see if it continues overnight.............I certainly cant complain of the falls in USD since this morning

N

 

[SpreadDoctor]

Originally Posted by SpreadDoctor View Post

got yer NVP. I was going to ask you a question about currency baskets. I wanted to create a custom indicator that was the dollar index (minus the cable) and a pound index (minus cable). This would then give me an idea of the dollar and pound strength with cable taken out of the equation. This could be useful for me as it would help me spot 'fake' moves in cable. I saw this software that allowed you to pull MT4 quotes into excel, I could then create my own custom basket and plot it. just havent got around to it. do you think it would be easy to do?


http://www.trade2win.com/boards/dis...ert-retail-forex-trader-3268.html#post2378540


hey SD


lets expand the discussion here......my immediate response is to load up my basic indicatorin links below and simply exclude the other currencies on the settings ....then you are watching pure GBP and PURE usd ...warts and all

heres the fxcorrelator with just gbp and usd on it on a 60ma setting which is a nice setting enough to remove most ma skew .............see the biggest move when both GBP and usd went in opposite direction today ?

N

ok thanks will look into it when I get a mo. Q about the chart you posted. You say GBP pure and USD pure, are these constructed using cable as an input, as I would be looking to remove this input and rely on all the other pairs?

 

[NVP]

ok thanks will look into it when I get a mo. Q about the chart you posted. You say GBP pure and USD pure, are these constructed using cable as an input, as I would be looking to remove this input and rely on all the other pairs?

if you open the indicator you can see the formulas.........

I average all the G7 usd pairs together to calculate my USD index ....then I create all the other index currencies based onvaluing their own USD pair strength / weakness vs the usd index I have created .........crude but effective for what I need.....

these are not 100% Pure in the sense you are asking ...........USD's relative value does contain input from the GU pairing .........and GBP's value is derived from that .........

N

 

[SpreadDoctor]

if you open the indicator you can see the formulas.........

I average all the G7 usd pairs together to calculate my USD index ....then I create all the other index currencies based onvaluing their own USD pair strength / weakness vs the usd index I have created .........crude but effective for what I need.....

these are not 100% Pure in the sense you are asking ...........USD's relative value does contain input from the GU pairing .........and GBP's value is derived from that .........

N

ok i understand. let me have a play with it.