Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

hey all.........gotta scoot .....

have a good evening

N

 

[NVP]

Friday gameplan ?


ok ....the left chart has the FXcorrelator on a 200ma setting ......I wanted to see the actual moves of those few currencies in the week ...

Well we lost a shedload of points on the Dow since wednesday .....Naturally Traders will not give those up into the weekend so if Dow starts rallying the busted stops will keep it moving north and we go to selling usd and Yen for Friday

since the Euro has had the worst week of the main currencies I trade...I would bet that Euro would be the main beneficiary of this scenario as a rebound

Corrie bet 1 = dow rallys = buy E/U

otherwise if its even more doom today and the Dow plunges then the USD and Yen will continue to dominate the frame as buys and we keep dumping those other currencies

In truth I feel that the AUD has had an outstanding week (int rate was held) so perhaps the softening will come there as traders take any gains off the table today in this Scenario - but probably later in the day...equally some will argue the euro will continue to get kicked like a dog ....your money your Choice !

Corrie Bet 2 = Dow falls = Sell E/U (london& Early US) then Sell A/U (later)

Good hunting :smart:
NVP

 

[NVP]

had a good week trading Gold as well......but thats another story !

 

[NVP]

hey all

are you playing my Gameplan from earlier post ?

looks like the Dow is still under immense pressure .......so scenario 2 said sell E/U during london / early US

s/be working well so far dudes

N

 

[NVP]

I still think we will see a Dow bounce later.......but trade what you see now !!

 

[NVP]

1.27 hit on E/U............much better than I dreamed today on this sell.....

 

[NVP]

ok - I see the first signs of a Dow fightback as we head towards week end ......

above 12,800+

I would be tempted to turn to plan A and start hunting USD sells

I think E/U must be a possible buy as the stops will be tight behind all the days selling activity and will fall like dominoes .............and then later into the session (early asian) go to the A/U as a buy

N

 

[NVP]

jees this could roll fast...buckle up !

 

[NVP]

so now we wait.............its right on the brink ........dont get sucked it ......you need the Dow to lead the party

 

[NVP]

the hell.i'm in

 

[NVP]

i'm counting on a lot of E/U sell stops falling now in the 2720-30's area

 

[NVP]

i'm out again ..........theres a retrace coming

i'll step back in when it passes

 

[NVP]

ok gotta scoot

if you were sitting on my shoulder and trading with me heres the money area.....a retrace is coming so not yet (if ever today)

the point is that the dow and E/U have proven theres some pips north ....now it has to dig in a little on a retrace and then recontinue that path.....

later:smart:
N

 

[NVP]

Damn .....getting messy so i'm not doing anything at the moment

the usd is strengthening suddenly

ok i'm outta here .........may plug in later at home

N

 

[NVP]

hey all

here we are in the final session of the week now........

go back to my first Post today and read what I said.....

Ok you made money selling E/U this morning off a falling Dow

Now I am trying to make you money by Buying E/U (and soon A/U) off a slowly rising Dow

Trading is not rocket scince - but you do have to spend a lot of time researching and reading the markets to start to appreciate where to look and what to do....

the FXcorrelator is a relatively simple tool......but it gives the full picture on 8 currencies if you need it and thats my Edge to making consistent money ...knowing what the pecking order is regarding strength and direction at all times !

have a great evening gang ......and I still feel theres some A/U pips left in the tank if that Dow now gets a decent retrace north

N

 

[NVP]

I noticed that too. I'm starting to think that it may be caused by the election being over.

yep - its fiscal cliff time now in the USA ......everything now will hinge off the breaking dramas there as they unfold

N

 

[NVP]

hey all

heres how the Week moved using my simple rules of an FXCorrelator on 20ma setting and the Dow with a 20 sma line on it

Go to my signature area below to get the free information on this system

and it worked again ...all week

have a good weekend
N:smart:

 

[NVP]

Heres my Goldmeter results this week....not bad , not bad

I only tend to go to the goldmeter when the gold line (Violet) eclipses the strength of my best /worst G8 Currencies...then I know "fiat" currency trading rules are in motion....

N

http://www.trade2win.com/boards/commodities/157250-fxcorrelator_goldmeter-9.html#post2011204

 

[NVP]

1 simple trading rule !!!

1 simple rule to trade.........?

hey all ..........a lot of people ask me for 1 simple rule to trade with

1 simple rule ????.....

ok here it is below

load the FXcorrelator
use the 20ma setting
put it on the 4Hr TF

now follow these rules.........

only trade in the direction of the order of the currencies strongest to weakest

eh ?

in other words if 1 currency is STRONGER (above) another currency you can only trade the stronger currency as a buy against the weaker one on lower TF's if you get a signal ....

and vice versa if 1 currency is WEAKER (below) another currency you can only trade the Weaker currency as a SELL against the Stronger one on lower TF's if you get a signal ....

heres an example on the current 4 Hr Chart

so in order of strongest to weakest

YEN
USD
AUD
CHF
CAD
EUR
NZD
GBP

in this example you can ONLY buy the yen against anything on lower TF signals and you can ONLY sell the GBP against anything on lower TF signals

and as an inbetweener ...the CHF can ONLY be sold against any of the higher Currencies to its position (YEN/USD/AUD) but ONLY be bought against any of the lower currencies to its position (CAD/EUR/NZD/GBP)

as the positions change on the 4hr chart the rules change ......

thats it !!!
N

 

[NVP]

heres 1 more example from the last few days.....

each tick represents the signal change to make the Blue Euro a sell partner to the particular currency it crosses...

from the tick position the Euro can only be a sell against the higher currency if you see adecent signal on a lower TF

remember I am not saying you have to TRADE at the crossover pont .....I am simply giving you a higher TF guideline for signals from the 5m , 15m, and hourly charts

hope it helps !
N