Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

hey all..........

huge bear pressure on USD and Yen for a few hours now (and the aussies)........Europeans and cad all doing well........happy to let the trades run but becoming more concerned that retraces overdue.........

at 1.34 I see the usd and yen trying to again make ground north ......will shout it if I see a crack in the armour

Europeans and Cad will be the candidates to sell

N

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[NVP]

ok watch out - the usd and yen are noticeably flattening to come north

 

[NVP]

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

solid solid trading on GU sells earlier .............see below

not so sure now as usd has gone into solid sell mode at present

N

 

[NVP]

about an hour now of sustained USD bear action.............shes approx. 60% retraced from earlier highs

methinks enough is enough ?

even a small move is enough for scalps

set up to sell the GU / EU pairs

N

 

[Atilla]

about an hour now of sustained USD bear action.............shes approx. 60% retraced from earlier highs

methinks enough is enough ?

even a small move is enough for scalps

set up to sell the GU / EU pairs

N

Strange moves NVP, getting lots of conflicting signals. Volatility and fear will soon grip the markets imo.

 

[NVP]

about an hour now of sustained USD bear action.............shes approx. 60% retraced from earlier highs

methinks enough is enough ?

even a small move is enough for scalps

set up to sell the GU / EU pairs

N

soooo.....the USD has so far bounced on a FIB.....if you believe all that mumbo jumbo

 

[NVP]

Strange moves NVP, getting lots of conflicting signals. Volatility and fear will soon grip the markets imo.

yep............much much easier earlier in London session ..........

 

[NVP]

morning all

usd has had a smooth selloff so far in London session.............fairly easy pips on offer

here it is through the eyes of my USD index and the FXcorrelator - both available for free in mu links area :smart:

N

 

[NVP]

hey all

heres the day on a 5m FXCorrelator (default 20ma setting) and my green usd index (both free below in signature / link area)

messy day ...............the usd really didn't flow well

bear to 7.30 GMT (see my earlier post today at 9.30......money already in the bank!)
then choppy / Bull to 11am GMT
then recent selloffs ...

simple in hindsight but tough at the rockface

ive added a few simple S/R levels on the usd index ............areas where I was watching the action ...................

nothing fancy ...........buy on breaches ..........trade bounces (if clues indicate) ..etc etc ......

I am always looking for clues on the USD bias .............then I can select a pair and hammer it in direction the usd is sending things ............

the best and most obvious moves for me today was the 7.10 GMT resell down (buy GU/EU)

then the 11.40 retrace south after some ranging...........GBP was the obvious buy then (as it was strong bull buy on the FXCorrelator) and the euro rolled north around 12.50 for some safe buy pips ..............however I have to say they usd was then in significant/extended sell mode and was in danger of drying up .........

such is life
N

 

[NVP]

also note that strong support level for the usd index today

you could have thrown a 20 megtron bomb at it ............that wall was impregnable

so far
N

 

[NVP]

morning all

easy early pips today and usd cruises north and the Europeans take turns to selloff

red GBP then Blue Eur then Grey CHF

jees - sooo polite !!!...........after you dear boy .....

N

 

[NVP]

ive been lucky enough to read a lot of trading books over the years and many many many great traders talk about the leap they have to make to become the best ...........

many talk about this uncomfortable feeling they get when initially switching to the system that works for them

it feels ungainly and risky and against everything they have been taught by less successful traders

but that's where you have to be to become successful

if breach / momentum based trading was so great why arnt there armies of wealthy traders out there that have used these more obvious systems ?

we wouldn't have forums like this ...............or need the armies of wannabee traders selling rubbish courses and systems to wealthy professionals seeking their next conquest in life ...............

hmmmmmm
N

 

[NVP]

examine your reasons for becoming a trader gang ............its not an easy path and this thread strikes a chord in me


http://www.trade2win.com/boards/trading-journals/193710-trading-mood-disorder-4.html#post2558678

 

[NickBk]

NVP your a very happy camper today, great to see..

 

[NVP]

NVP your a very happy camper today, great to see..

sorry - a few business associates have dropped me in the river on a project and i'm not happy to say the least ..........fuming in fact

N

 

[Atilla]

sorry - a few business associates have dropped me in the river on a project and i'm not happy to say the least ..........fuming in fact

N

Haha - the phrase hit the water running comes to mind. I'm sure you'll be like duck to water... :cheesy:

Try and make a big impact - as big as you can

 

[NVP]

jesus..............were gonna need a bigger bath !!!!!!

thanks - needed a chuckle

hahahahaha

 

[NVP]

hey all........

heres the Week for the EU and the GU on a 1hr

you see the relative indexes for the 3 main currencies here

remember the indexes here are overlapped as separate indicators so you must allow for scaling.....................its not like the FXCorrelator where all are on the same indicator

currency strengthmeters and related indexes are part of my trading world............I use them a lot to assess what currencies are doing ..............and when to play the moves

strengthmeter 101 is simple .............trade currencies moving in opposite directions ......thats it

sure you can trade breaches , bounces , momentum plays ..............but this is the crux

look at the EU on Monday ..................it doesn't get better than that guys..........see how the red gbp was bearish/flattish whilst the blue euro went ballistic into the falling usd ?..........

that's why the EU delivered 170 pips and the GU only 80..............GU was still impressive (as the USD obviously provided most of those GU bull pips by falling like a stone).............but clearly if you get the usd delivering mega pips and the EUR also doing the same you get a sizzling session !

remember in trading ...............you need 2 currencies to tango ........

and you cant see the tug of war on a normal pair chart .......

Hey i'll drop them in my links area

N

 

[NVP]

here are the 3 main Currency indexes for MT4 and also ive added the yen , NZD, CAD , AUD , CHF

look these are not perfect ...........a purist programmer will tear them apart ......but they work for me and I've had them for many years

just overlay them on a pairchart .......all 3 if you want to watch this triad on 1 chart ........beware though the more you load the harder it gets to read the market

simplest approach is to load on the 2 currencies appropriate to the pairchart you are using ...........it really opens up the dynamics a little more than hust watching the candlesticks for the pair :smart:

N

 

[NVP]

heres EJ