Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

hmmmmm.....quick post

usual market chaos I see.....the overnight breaches at around 7.30am was key to the trades so far and shown on the charts below (red verticals)

it was a shotgun scatter play as everyone exploded in all directions......particularly the tag where divergence is clearly a worry......at the 7.30 bar gold, WS30 and indeed the tag were all over the place so really good correlation traders would have held off pending better congruence and signals.....

If you were a straight punter you could have bought USD and GBP (upwards breaches)and sold Yen and euro (downward breaches) in any combinations or singles but thats gambling :?:....and of course the breaches could have turned on a sixpence and fallen back into the overnight ranges......but they didnt so....the gamble paid off mostly

correlation traders would have been rewarded later with encouraging signals from about 7.50 onwards to 8.20 when ducks fell in a row and we had WS30, gold (both falling)and the tag finally rising to initiate some trading signals......and euro and GBP both oblidging with a few pips (Euro was most obvious being weak anyway)

but just a handful before markets retraced a little.........

at this moment I see USD looking bullish but I would prefer to see Yen rising to support things.....in fact believe me so far today Yen is a very potentially weak bunny as the markets should have been driving it upwards a lot more than seen....so if the markets kick off upwards.......guess what Yen will do regardless of other currencies.....:whistling

later dudes.....cotton to be picked and toted
N

 

[NVP]

Usd pushing up supported by markets.....Sell Euro looking best with GBP about to follow down soon......

 

[NVP]

cmon euro say bye bye to 1.36.......cmon.....!!!

 

[NVP]

its bloody Aussie D that collapsed............bugger !!!

 

[NVP]

no theyve all collapsed ..............Horrah !!!!:clap::clap:

if only trading was always like this.......sigh :whistling

N

 

[NVP]

would love to stay but duty calls............shame as it was getting interesting eh !

later dudes...hope you got some fast pips
N

 

[NVP]

great mornings trading and correlation on markets is perfect to tag.......but its been a long drive now and how long will this perfection last ?......and lunchtime is approaching ...?

start tightening stop losses everyone and lock in the profits
N

 

[jrplimited]

Hi N and everyone,

Cant believe its Friday already - where has the week gone? Here is my bun fight for this morning:-

GU; Entered long straight after 08:00 bar and got caught as price fell over after two bars and tool SL out for 21 pip loss. Price bounced off a short flag at 08:30 then a weak long flag at 09:00 and I kept the powder dry (just!) before taking second trade short on 09:30 bar at 56806. Price again went against me and drifted upwards but this time it was fairly shallow retrace and eventually 09:55 down bar kicked this pair into action and off I went on the southbound freeway. Price went into sideways mode from 10:30 bar and I waited to see if it could take out local low at 10:45 print which was tested a few times with no real conviction and after this I closed out on 11:35 up bar for 81 pip profit.

EU; Price rattled along long flag at session start then broke down and short entered on 08:30 bar at 36226 and got the usual "ahh, here is that idiot again; lets do the retrace thingy!" which was quite shallow, followed by a very slow drop again to just below initial entry then a small two bar rise and finally a drop back again ending with a whoosh down bar at 09:55. Price hit a ragged range channel from 10:10 bar but underlying bias was still firmly down for me so I held on until tightened TS touched during 11:40 bar for 72 pip profit.

EG; A very twitchy behaviour today. First trade entered short on 08:35 bar at 86678 and price flattened out before popping up on 09:05 bar, then reversing down and popping up once more on 09:25 bar to threaten SL but this was countered by price going back down below entry which allowed me to at last pull SL down but that got hit during 10:15 bar for 9 pip loss. Second trade entered long on 10:50 bar and price retreated back down on me and went into an erratic pattern with 11:25 bar touching SL and taking me out for 12 pip loss.

Looks like the Euro zone's side stepped announcement of support for the four little pigs (Portugual, Ireland, Greece and Spain) hasnt really done anything to stop the big bad wolf (the markets) from huffing and puffing and blowing the currency down! The markets certainly dont seem to believe that Greece will be able to furnish its soveriegn debt and that belief will extend to the three other members of the little pigs group, plus we here in the UK might also get caught up within this question of soverien debt - I rather think that that is actually happening now.

Big question for us all is what the markets reaction is going to be to the good old USA's massive budget defecit when this bomb stops ticking and detonates? Eeek! Stand by for more blowouts - trade well and regards,
Simon.

 

[NVP]

hmmmmm all hanging isnt it.....

I think that Tag is going to fall eventually with euro and AUD rising.....not sure re GBP though....

you could let it all resettle a little and confirm this call or just have positions ready to buy :-

E/U above the 1.3569
A/U above 8827
G/U above 1.5629

caveat - I want gold above 1083 again though......

lets see !!!

N

 

[NVP]

see how gold has oblidged but nothing biting yet.......all conditions have to be met im afraid....and if gold dumps again its bets off.....

jees i'm a strict one.....!!!

n

 

[NVP]

i'd also like to see the WS30 dow above 10090 ......

oh yeah and world peace.....

N

 

[NVP]

g/U has bitten hasnt it.............god help me for calling this.....as actually its against the whole trend today and i'm looking for a cheeky retrace trade.....10-15 pips max here dudes

N

 

[NVP]

well golds looking good.............cummon !!!!

 

[NVP]

hold your breath......

 

[NVP]

euros triggered .............bugger I think one more retrace is gonna happen before this flys

 

[NVP]

10 pips stop on each....sorry everyone

 

[NVP]

looking dodgey.........will you all love me in the morning ?

 

[NVP]

the usd is fine....its those bloody layabout eurodudesthat are playing up......Euro looking better than GBP so far

 

[NVP]

dows coming on strong......salvation.....

 

[NVP]

your not seeing it but every other currency is rising against the Tag except the Euro , GBP and the Aussie D.........bloody marvelous !!!