Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

yep ........nice action recently on buying the Euro and the GBP

not sure if anymore legs on that Dow futures push now above 13,100 ??

and by the way ......the CAD (not shown) is rocking north to rob these guys of more pips ...damn !

N

 

[NVP]

technically I would be looking to sell the Euro and GBP now as I really think we wil see a retrace on the Dow futures

heres some price levels on E/U and G/U that represent good levels to sell at if they come back there .......

sure we are moving away from the simplistic 20ma crossover work.......but you reallydidnt think I use that exclusively to trade did you ?...

N

 

[NVP]

you may not get the chance for value prices .......its rolling fast south and we may have to grab whats going .......

N

 

[NVP]

not much in the tank.........a handful of scalping pips really

thats why I was hoping for a better value trade set-up as described in the earlier post.....

http://www.trade2win.com/boards/for...-basic-ideas-strategies-1307.html#post2036410

later all........need to be elsewhere
N

 

[NVP]

practice yourself......trade the range on the dow futures as shown .......if you see a good price on G/U or E/U as the limits of this range then anticipate the bounce

if it breaches the S or R lines then start the process again ......with new S/R points !

later
N

 

[NVP]

remember in trading you are either :-

Trading the Trend
Or
Trading the Fade (anticipating S/R turning points)

N

 

[NVP]

ok heres another scalp senario

GBP is WEAK !!! (its hidden with yen and USD)....if dow now retraces G/U should fall ...

lets see
N

 

[NVP]

sorry about the quality of the pictures........I still am upgrading my system post move

 

[NVP]

remember you can still trade the standard rules ..........we had a recent superb buy on E/U on 5 mins simply going with the 20ma trend settings

N

 

[NVP]

ok heres another scalp senario

GBP is WEAK !!! (its hidden with yen and USD)....if dow now retraces G/U should fall ...

lets see
N

see ?........ok i'm playing pattercake here on the 5mins with handfuls of pips ....but I am seeing the trades 1 step ahead........even if this scenario would have stopped me from BUYING GBP it was worth it ......and this can be easily applied to higher TF's as well.....

the probabilty of the GBP chasing north alongside USD and YEN was very low........in fact look through any TF FXCorrelator 20/1 setting and show me an extended period where either the Euro , AUD or GBP run parallel to the Yen and the USD for a lot of bars..........aint gonna happen........they are different tribes ! ...

later :smart:
N

 

[NVP]

and for all of you rule followers..........

market is hard today ........Remember we are only Selling yen and USD against GBP and Euro based on the left 4hr chart (20/3) currency rankings ........

so the blobs mark the opportunities on the 15m TF standard FXcorrelator (also requiring a rising Dow)...........the Yen was the problem ........look at that kicker earlier on sending it sky high.......

Damn !! - life would be boring and thin today without ignoring the rules above and scalping !

N

 

[NVP]

I must admit I dont follow bonds that much......

but the Italian 10 year looks an interesting option here......

http://www.blackswantrading.com/storage/currency-currents/121712_bscc_itlaianbonds.pdf

 

[NVP]

ok - checking out......until tomorrow

N

 

[Itshamish]

An excellent series of mentor-comments to-day, NVP. Thank-you very much indeed.

Those CoT positions in AUD,USD, JPY... and quad-witching coming up. Stick with scalping opportunities?

Spot-on with the Doggie-Basket analysis as employed by the equity fund bangers... err managers. A classic of psychology of our basic emotions: Greed and Fea.r No one wants them because they are not 'sexy' enough (greed) and it's the easy way out to ignore them (Fear) and be outside the 'herd'. True? No wonder the more shrewd FX traders have adopted the policy as well...
Trade canny,
Hamish.

 

[Itshamish]

For a little diversion have a look at the SSI and note NZDUSD ratio...!

http://www.trade2win.com/boards/forex/71234-fxcm-dailyfx-signals-strategies-66.html#post2036802

Trade canny,

Hamish

 

[Itshamish]

And here is some excellent technical analysis on USDJPY prospects for 2013.
Basically, looks like a retracement to 82.80 before a further USD climb against the Yen. Buys for EUR, GBP team against the Yen as well. Mainly carry-trade related.

http://www.trade2win.com/boards/forex/71234-fxcm-dailyfx-signals-strategies-66.html#post2036802

Hope this helps.

Trade canny.

Hamish.

 

[NVP]

a lot of people are really badmouthing yen for 2013 .........all the more reason to buy it then ?

as if any G8 Country currency is in a good condition ?

N

 

[NVP]

An excellent series of mentor-comments to-day, NVP. Thank-you very much indeed.

Those CoT positions in AUD,USD, JPY... and quad-witching coming up. Stick with scalping opportunities?

Spot-on with the Doggie-Basket analysis as employed by the equity fund bangers... err managers. A classic of psychology of our basic emotions: Greed and Fea.r No one wants them because they are not 'sexy' enough (greed) and it's the easy way out to ignore them (Fear) and be outside the 'herd'. True? No wonder the more shrewd FX traders have adopted the policy as well...
Trade canny,
Hamish.

Thanks Hamish...

I just call what I see.......its just practice practice practice and anyone here viewing can do it (on any system) if you apply yourself to things long enough........I read somewhere that 10,000 hours of applied training and learning is needed for a modest mastery in most professions / vocations

"Doggie-Basket" ......great analogy !

sorry guys I am still tied up at the moment.......will try to get into screens later for a little ramble through the charts :smart:

N

 

[Itshamish]

Some profitable selling of USD against the 'poitive' European tribe on the 15M chart over the last 45 minutes - thanks to the FXCorrelator!

 

[NVP]

hey all

popped in for a few minutes .....Hamish is right........although incorporating the Dow move (down) would have prompted me to be risk averse and not trade that GBP flyer !

my loss then - to each their own

a few pips here and there today looking at the 15m (right chart)....a nice overnight trend following signal and then a few S/R plays through the london session so far

as I said ........My purist system demands you honour the Dows position as well as the yen and USD ....I call ignoring the Dow and just playing Yen and USD moves together as "Trading Naked"

And this certainly would have worked hitting that recent GBP buy.....

theres no 100% correct strategy to trading Forex strenghtmeters.......and believe me there are hundreds and hundreds of ways to look and use these critters !

so start with my basic system and then start to ask questions here ....as in truth ive probably visited the avenue (or close to it) that you will ask me about

N