Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

mornin all............

no doubt Forexperians scalping thread is calling a lot of trades at the moment ......we are in a period of increasing/spiking volatility ....... as you can see below from the multiple divergence on all currencies

Green USD is the middleman (as usual)......europeans are going north and the others are going south

take your pick........ and trade !!

N

pips still coming ..........G/U 15 pips higher than last post above

N

 

[NVP]

Trading is difficult until you have

1) Done the groundwork / research re the whole subject (6-12 m)
2) Experimented with ideas for specialisation (6m- 5years)
3) found your edge and perfected execution of it (6m - ongoing improvement)


3) is actually a piece of cake ..........its the lack of completion in 1) and 2) that are the problem for 99% of traders ...........and why they fail and eventually leave the business

later
N

 

[NVP]

the chosen specialisation / edge / methodology needs to be as ingrained in you as breathing ....no excuses .......no shortcuts

so use T2win and start that process in earnest if you are serious about becoming a trader .......

we are all on this journey as eternal students ..

so dive in and join the debates here at T2win

we wont bite
N

 

[NVP]

pips still coming ..........G/U 15 pips higher than last post above

N

WOW......see how markets can literally change in seconds ..........G/U clipped 1.6845 and is now at 1.68.......45 pips reversal in under an hour

the GBP is a volatile currency member of the G8 I use .............so I treat it with the respect and kid gloves it needs ...........it can make you a lot of money quickly but equally will cut you to ribbons vs other more steady currencies on reversals

(Economic news always being the exception)


later
N

 

[NVP]

hey all .......apologies ...ive been busy and also having fun on the euro

heres the 1 hour TF on my standard 20m indicator (free below in links) .........as you can see the blue euro and Grey CHF have gone ballistic north

buy buy buy ...........although clearly the bus may have now gone after 3 hours of action

later
N

 

[NVP]

is the euro overbought ?

thats a question that could take days to answer ...let me condense it down to 1 second

yes ..........I am significantly stopped to not give away the retrace coming

N

 

[NVP]

i'm not saying it will not continue to rise .....thats a different question

I am saying that currencies (and pairs) dont move in straight lines ........

N

 

[NVP]

and i'm not just watching the Euro ......i'm watching the G8 ..........and I see a volatility spike that now is pretty big..............so perhaps some retraces a comin in next few hours

so relax ..............always a bus coming along later if you are patient and wait ..........

thats the secret to trading ............patience and waiting

N

 

[NVP]

imagine a Crocadile sunning itself and semi-submerged in a small stream in the outback .............

birds and animals visit the stream to drink ...........only a few and they are always on guard ....................

days pass .......no movement from the old croc ...........in fact he could be dead ?

then finally an older buck deer walks down to te water at dusk........he closes his eyes and drinks in the cool water ...........

you know what happens next ?

so be like the croc............sit and wait...... only attack the market when you see the easy trade........and not before that .....it wastes time and resources

keep it simple, wait for the right signals ...... and always always grab the easy meat first ............ :smart:

N

 

[NVP]

and the Euro has been that old buck for about 2-3 hours now .............

 

[NVP]

jees that EurUSD trade is the gift that keeps on giving ............can you see why below ?

the USD is still pushing south ..........that ADDS pips to the E/U buy

the EUR is now slightly falling but not significantly ........thats actually pretty neutral for the E/U as we have to consider the convergence drag on all ma based systems....... so Euro isnt really falling much in reality (read up on my links / thread here or perhaps how MACD's work to understand)

All i need to get is just 1 of my 2 currencies in the pair to do well.......and these guys are both doing just fine

later
N

 

[NVP]

People are always e-mailing me and asking what trades i am in and what am I trading at this moment .........

well dependent if I am actually able to trade (work) I will be using my own bespoke systems that are improvements to the ole FXCorrelator that I offer here for free

improvements is probably not the correct word actually .......hmmmmm

the indicators I use are not actually that far removed from this solid old friend I publish here daily ...............but they are tuned for me to the purposes at hand

not toooo many to confuse me ....and surprisingly simple ..........but effective ......after 14 years of playing they damn well should be

anyway the truth ?

hmmmmmm
N

 

[NVP]

live call ?

my systems flasehed Sell G/U 1.6878 ish ...and its 75 now

 

[NVP]

USDCAD sell flashed a few minutes back at around 1.0950.........a few pips in the black

 

[NVP]

volatility for me on G8 today peaked at just before UK lunchtime......... so all this is currently rearguard action and squeezing for a few more pips

 

[NVP]

the E/U today up to (and after ) luchtime should have been anough to satisfy any trader who knows what they are doing .........

later
N

 

[NVP]

live call ?

my systems flasehed Sell G/U 1.6878 ish ...and its 75 now

now 6871

 

[NVP]

i'd bail both now ....

 

[NVP]

ok gotta scoot ....

later all and be careful out there

N

 

[NVP]

mornin all ..................early meetings in the office ............will be online later

N