Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Thanks for the reply NVP,

isn't this just Standard Deviation though?

Hey S

can you elaborate a little ?...........are we talking similar to Bollinger bands ?

if you add horizontal lines across the indicator like below you can identify the deviation from the mean (ma)Zero price line

its not really strictly a SD though (like Bollinger bands) as those BB envelopes expand and contract as the MA increases and decreases...

its more a Keltner band or simple % deviation from MA

all useful to consider though ..... :smart:

N

 

[NVP]

hey all

where are we ?

heres the 4hr chart on the 20ma settings....all available below for free

at the moment we have the dow above the 20 sma.....and see how the yen is ALREADY south of the Zero line ....and the USD has just joined it ?

thats a sell usd and Yen signal......but in truth the USD looks strong and i'm not convinced ...yet

drop down and play the 1hrs .....those sells may now continue for a while ?

NVP

 

[NVP]

i'm tied up today travelling ..........may not pop in again until tomorrow

N

 

[NVP]

hey all

sorry but i'm still a little tied up with other things this week

but heres how to learn to trade in 20 minutes......(kidding)

damn - what have i been wasting my life on for all these years ?

Markets.com

 

[NVP]

heres the action this week.....default 20ma settings used on my free indicator below

the last 24 hours plus are all buy buy buy the usd and yen

N

 

[NVP]

hey all

i've been tied up a lot this week on some new potential projects and a short break in Devon

heres the 1hr on the 20ma default settings ....see below for all details

I see that the conditions have been ripe to buy USD and Yen in the last 24 hours despite all the press saying the usd is in trouble (See chart)

if the USD is in trouble god help the rest of us !

NVP

 

[NVP]

For anyone interested GOLD (priced in USD) its most common pairing (XAU/USD) has been a big buy this week on my charts ....

why ?

because Gold (in relative terms) got stronger than every other currency I show here on My standard FXcorrelator

this is the Goldmeter (see below - Gold is in bold violet) and is part of a family of simple charts I am currently planning to turn into a new Trading portfolio system offered to future clients

NVP

 

[NVP]

THE JOYS OF TECHNOLOGY

as anyone who knows me .......I am rubbish at technology.....any failure of my many IT systems are met with complete ignorence and subsequent tantrums

this morning I cannot get online on my main PC to update platforms or produce charts .....despite it working last night (??)

theres nothing wrong with my other Laptops ....but they are much less weighed down with latest software or my latest MT4 indicators......doh !

anyway the moral is :-

Make sure you always have IT contingency measures in place when trading

sure you may think a stop loss is for pussies.....until you crash with a Live trade in place .....:whistling

N

 

[NVP]

hey all

3 years ago today I started this thread as I wanted to discuss and share some
ideas and strategies I had been trading in Forex for a few years...... arty::drunk:

thanks for everyones kind support and help in this venture and I hope its prompted some debate and comment regarding the use of strengthmeters and Market Correlation.....

and of course a big thanks to Mr Corrie without whom this would not have been possible......

http://www.trade2win.com/boards/for...rading-basic-ideas-strategies.html#post875782

 

[NVP]

meanwhile I have used the last 2 weeks to take stock of things and reset the compass a little ........

will keep you up to speed if anything interesting hits the fan..I want to build a business(es) alongside my Trading and Employment income streams

N

http://fxcorrelator.com/corrie2/blog/game-change/

 

[NVP]

heres the 4hr TF on my indicator......20ma settings

Trades signaled in last few days getting you into buying the yen and usd off that falling Dow.....

The yen and usd were very strong (above the zero line) even as the Dow retreated North on that recent retrace........

Dow breaking the prices shown would indicate confirmation of either direction

13,200 breach indicating the usd and yen should now be falling
13,088 breach indicating we stay on our (current) buys

N:smart:

 

[NVP]

so with that current prevailing trend in mind in mind I would be waiting for the Dow fall to recommence on the lower tf's (like the 15m below) and the yen / usd buys also to recommence

the GBP and Euro would be my main targets in london am session but aud has been weak recently so that would be traded as well if signalled

N

 

[NVP]

overall the USD is has performed very strongly by holding to flat during the last few months bullish activity in Equities.....(unlike the yen)

Time for a change indicating a weaker USD ?

hmmmm

NVP

 

[NVP]

ok dokey.............my main trading pc at home is playing up and needs some TLC from my local PC guy.....

so no calls today as i cannot access it remotely

later

N

 

[NVP]

mornin all.........

hmmm...........usd and yen took pain yesterday ........off a still flat/falling Dow

Correlation Karma is not in balance at ths moment so I have no interest...the 4h TF lead really has me still seeking Buys on the USD and Yen .....perhaps this morning ?

looks like Euro and GBP took the opportunity to seize the day ......

N

 

[NVP]

heres another view of that 4Hr action.........

this is the same Dow chart and the FXcorrelator is on a 1000 ma setting to see true (unskewed) price movement........

see the rising Dow channel pushing our dynamic duo both south.....?

but now what ?

is this the end of the trend ?

using price action patterns and rules (which can be used on the 1000ma) i I need more confirmation

...but it could be ?

what do you think gang..........let me know here :smart:

N

 

[NVP]

ok 1 more chart............then i'm outta here......

If I was using PURE price action strategies* and unrelated to my Correlation principles my path would be very clear at this moment regarding USD

there is a very pure price band below currently showing as resistance for the usd (was support)

until that gets truely hammered on retrace and breached north .....this is a definate sell scenario on USD.....

so another view .......and yes again you can use price action principles using this indicator ..in my view even more effectively than trading paircharts

but then i am a Strengthmeter Junky

N

* using Lance Beggs excellent PAT training manuals

 

[NVP]

Andy is looking at Shorting the USD as well.........

http://www.trade2win.com/boards/forex-discussion/123288-3-ducks-trading-system-273.html#post1954098

interesting view regarding favouring the Stronger Euro vs GBP on the 4hr.......I tend not to be tooo bothered on this front and would take the move (GBP or Euro buy) if either of them went confirmed signal on the lower TF's and the 4hr rules still held.....

My main strategy (as you all know) is to get my USD and Yen bias correct and the secondary currency selection is then a bonus if it in fact it becomes the best moving pair ..........

Generally I am onto a decent winning position if the USD or Yen has already given me that edge for profitability whatever second currency I then chose as the partner !

3 Ducks | Eur.Usd - YouTube

 

[NVP]

hey all

well I now have 2 PC's / Laptops in the sickbay today so i'm off to see my IT mate later....

no updates on my indicator / systsm until things are fixed .....

anyone feel free to load in snapshots charts if you want to discuss here.......

thanks
N

 

[NVP]

all PCs off to the doctor today...........wil try to update some charts over the weekend on another Laptop I have ....somewhere......

N