Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

and to close out the basic strategy if we are selling usd what are we buying ?

well again keep it simple .........only trade currencies trending in the opposite direction to the USD

in this example only the blue Euro is above the zero and trending north

so buy EU until further notice ...........put the indicator under the EU chart if you want to monitor it closely

this eu trade signalled in early hours of the morning (my charts are gmt -1) .........wait for bars to close to justify the position above / below zero ........

the GBP was also a buy but fell south out of bull trend ...........

will the EU continue in trend ?.........how do I know ?.........you are 5-6 pips up on a simple strategy ...........no fuss no frills

N

 

[NVP]

heres last week ...............a few signals mainly selling EU .........

why ?

because usd was mainly in bull phase and we simply waited for the Euro to go below the zero .......

nothings perfect ...........but ive seen a lot worse out there for lots and lots of money

N

 

[NVP]

what about the GBP and the AUD trades ?

well as you can see these guys really didn't get as many opportunities as the Euro did ..............................GBP took the biggest hit though if you caught it ....

N

 

[NVP]

regarding patterns ......do you notice that these 4 currencies never ALL appear on the same side of the ZERO (it is possible).............and if you look close enough if you get just 1 currency alone on one side of the zero......... its worth a trade as it will be diverging like a train !

what I have discussed today starts to embrace a few of the subjects in the slide attached ........

but its still effective ...........the stuff described below in the slide will take a lifetime of learning to even scratch the surface of strengthmeter based trading ..........after 14 years I am still a beginner !!

have a good day and I hope this basic strategy helps the newbies :smart:

N

 

[NVP]

scalping wise in truth usd is not as bearish as it has been so I need more directional clues....................NZD has been the sell in last hour .........yen is the buy

N

 

[NVP]

sell gu 6578

 

[NVP]

aud is the buy but I am focussing on a potential rebound south on gbp

 

[NVP]

allow it to 83 as s/L.....

hard work as gbp is biting ...............but usd is bearish still
N

 

[NVP]

buy eu 3202

 

[NVP]

usd looks like its going bear so i'd close the GU ..........sorry

 

[NVP]

ok gotta scoot ........lets see how the EU plays out

N

 

[NVP]

difficult trading conditions this morning ..........i'm going to s/l at B/e on the Eu

 

[NVP]

usd has folded south and gbp has gone with it ...........shame re the GU call therefore ....I thought gbp would accelerate faster than this and make us a few pips

perfectly feasible for me to have left on GU sell and the EU buy.........but only if GBP had gone ballistic as it can

N

 

[NVP]

move eu s/l to 3205 ....i'm not hopeful

 

[NVP]

3208...........keep moving up s/l 3 pips behind

 

[NVP]

got tapped ..........shame

 

[NVP]

ok usd is retracing a little ..........if if extends I might try GU sells again soon

N

 

[NVP]

ok usd has retraced but I need to see now what ........some interesting scalps here and I may go back into eu buys

 

[NVP]

sell gu 6574

 

[NVP]

urrrrrrrrr................too aggressive NVP .........buckle up ........let it ride