Best Thread Correlation Trading - Basic Ideas and Strategies

[TheRumpledOne]

Hey TRO......

have you ever considered trying to change a strength-meter into a candlestick format ?

I use the 1000/1 a lot here and the lines are ok for S/R levels and simple price action......but boy if it was all in candlestick format that would open up many more price action analysis/opportunities ...sure it would be a busy indicator in G8 format but we generally remove a lot of the crrencies anyway......in effect a price index !

respect
N

Candlestick format, no. Wouldn't that just be a histogram?

VU Meter, yes.

 

[NVP]

Ref my post 1418 above......

did you all get to the currency shop.....or did you miss the boat ?

I bet the politicians were as soon as that baloney was announced......spare me

N

 

[NVP]

Candlestick format, no. Wouldn't that just be a histogram?

VU Meter, yes.

Hi TRO

agreed histogram is a bar representation but woudl bt a horizontal band of data along the bottom.....

what I would love to see is each line on the current strength index converted into a candlestick format.....this way we could see the range of each time bar instead of just a simple line....line is good but candlestick has more applications

it would clearly look rediculous with all G8 up there.... but I would set the ma to 1000 and the delta to 1 and then reduce the currencies to just 4 like my basic corrie charts I show (Yen , USD , Euro, GBP)

for example if we took the FXcorrelator on a setting of 1000/1 and then managed to convert the line representations to candlesticks then if we hid everything except the USD you would have the US$ index chart showing.....but usable on any timeframe and not just the daily !

my very poor programming abilities cannot even start on this one.....
N

 

[NVP]

Hi N and other viewers,

As commented yesterday, bit of caution needed today in respect of the big one tomorrow, so did I read that?!!

GU; 19 pip profit. Second trade 15 pip profit.

EU; 11 pip profit. second trade. 4 pip loss.

EG; Absolute basket case here today, chart all over the place so left well alone.

Very hesitant morning as obviously markets gearing themselves up for a volatile run into tomorow's key data release - be careful when trading this afternoon, personally I'm just going to simply switch off charts for the day!

Trade well and regards,
Simon.

Hi JRP....

jesus its like piccadilly circus on this thread today

nice pip haul......and volatility is picking up nicely as you say in the markets

N

 

[NVP]

Are we having fun yet ?

....I think the tag team are.....

1000/1 corrie on the 1hour here......they re unstoppable

N

 

[NVP]

complete the sentence

Tag goes up and markets go....." "


N

 

[NVP]

yen is unbelieable isnt it......unbelievable

 

[NVP]

if you can keep your head when all around are losing yours.........

umm.......then you'll get a margin call shorting Yen !

N

 

[NVP]

even allowing for the MA curve on the 1000/1 (its not perfect as its still a distorting moving average and not an absolute price level as per any standard pairs chart - MA would have to be infinity) I think yen just got to its highest (relatively spreaking) for many many many months - Nov 09 just got blown away with todays burst.........

although the daily charts (second piccy) show its nowhere near the 2008 levels.....

still not bad though .....and will it break that Daily resistance level ?

N

 

[TheRumpledOne]

FXCORRELATOR_TRO_MODIFIED_VERSION

A little contribution to show there are no hard feelings.

I added a color legend to make it easier to know what line is what currency.

There is also an input switch to draw grid lines at the user input levels. Default is false.

 

[TheRumpledOne]

Kind of interesting to see the correlation.

 

[NVP]

FXCORRELATOR_TRO_MODIFIED_VERSION

A little contribution to show there are no hard feelings.

I added a color legend to make it easier to know what line is what currency.

There is also an input switch to draw grid lines at the user input levels. Default is false.

thanks TRO.....works a treat !


heres the 1000/1 on 1h showing the overnght situation.......how long can yen continue ?


N

 

[NVP]

morning all.............


i think the markets are having a rest after yesterdays action.....:whistling

flat as a pancake overnight......perhaps a little equity upwards pressure that (interestingly) did not really manage to push yen down......

NFP's today on top of all the action that has happened this week....and the potential Friday unwinds that could occur........

watch the 15m bar action at 7am and any breaches of the o/night.......not hard give the flatness seen !

as they used to say at the start of stingray***

....Anything can happen in the next half hour......

umm - Make that in the next 12 hours or so...........

N

PS everyone be nice to TRO as Ive asked him for a big programming favour on the corrie

*** if you dont know this programme then youre to young to trade

 

[NVP]

Kind of interesting to see the correlation.

Agreed ............euro and Swissie normally walk the same path.......(albeit that swissie is normally as flat as a pancake and the winner of most boring currency for the last 200 years)

we've discussed diverence/convergence plays on these 2 currencies before but no one picked up the gauntlet....

N

 

[NVP]

hi all...........

7am 15m bar was very tight today on the USD pairs.......but it was the correct direction for the breach that was confirmed rapidly by a nice breach of overnights around 7.45....all markets were in correlation driving up the tag and the europair down.....

those yellow horizontals are all around 7.45 am

not much else I can see really...........
N

 

[NVP]

looks like some nice sells into tag at moment.....

 

[NVP]

Euro looking weakest.....

 

[NVP]

aussie D coming under selling pressure.....

 

[jrplimited]

Hi N and anyone else out there,

Its nfp day today so I'm using half my usual "pop per pip" and also trying to be careful.... Careful? Thats a first then!

GU; Big 07:55 down bar upset everything chart wise so I waited for the normal hour for things to settle down. First trade entered long at open of 09:40 bar at 56991, price stalled for a few bars then went into shallow decline, moved up very slowly and then gave another shallow decline print higher than previous one. At long last 11:25 bar sprung into life and momentum returned to push price northwards but that was fairly short lived and after 11:40 down bar my patience had run out so I exited for 17 pip fairly edgy profit.

EU; Sell stop placed at 36796 with finger on market buy order trigger in case of price reverse, order filled during 08:05 bar and price went down then found bottom and reversed. Exited on close of 08:35 bar for 8 pip profit. Second trade entered long on 09:10 bar and immediately fell over to take SL out during 09:20 bar for 16 pip loss. Third trade entered short on 09:25 bar (with a feeling like I was stuck inside a revolving door!) and price moved down slightly then did a small retrace before going back down. After 10:00 bar close I moved SL to TS which got taken out during 10:30 bar for 5 pip profit.

EG; Yet another basket case chart wise for me today and although I could "see" a good short and long scalping opportunity, decided to leave this pair well alone as the normal good syncs between G and E moves has been rather lacking lately.

So its now a case of watch out for the 13:30 nfp build up and subsequent bomb if anyone is brave enough. Not for me though as if I do trade, I always wait for a least a good thirty minutes or so, and even then trying to find only solid setups.

Trade well and regards,
Simon.

 

[TheRumpledOne]

Agreed ............euro and Swissie normally walk the same path.......(albeit that swissie is normally as flat as a pancake and the winner of most boring currency for the last 200 years)

we've discussed diverence/convergence plays on these 2 currencies before but no one picked up the gauntlet....

N

Then what kind of "plays" are being done here?