Best Thread Correlation Trading - Basic Ideas and Strategies

[guidemesingapore]

Correlation exists where there is a mutual relationship of interdependence between two entities. Why is it that people feel so sure that they can earn money in forex? Surely the reason is that they immediately see that there are patterns, that is, correlation.

We can see that there is correlation between the graph and the yellow line and is is tempting to think that, as a consequence this can be easily traded. The problem is that there are too many unknowns. How could anyone foresee that the price would bounce off of this line? How can we know how high the price will bounce off the line? How can we tell when the price will stop bouncing?

 

[NVP]

Correlation exists where there is a mutual relationship of interdependence between two entities. Why is it that people feel so sure that they can earn money in forex? Surely the reason is that they immediately see that there are patterns, that is, correlation.

We can see that there is correlation between the graph and the yellow line and is is tempting to think that, as a consequence this can be easily traded. The problem is that there are too many unknowns. How could anyone foresee that the price would bounce off of this line? How can we know how high the price will bounce off the line? How can we tell when the price will stop bouncing?

hey G

happy to chew the cud my friend :smart:

Correlation can exist between more than 2 entities

I dont feel sure I can earn money in Forex

you cant forsee that a price will bounce off anything....ranges and bands can be interesting though on paircharts and indeed Individual currencies

and the market is both irrational and rational 24/7 365 days a year....thats what makes it such a challenge

so - tell me what you think works and what doesnt

N

 

[NVP]

hello ?

shame as I fancied a nice chat about correlation :|

guys and girls......my webdesigner and other associates are telling me that no one interacts much on this thread so what am I doing here

I see nearly 200,000 views now so I struggle a bit myself to explain this ...unless its that clear now that everyone understands what I do ??

seriously if you fancy posting some questions I am happy to answer..I am investing a lot of time and effort in my forthcoming website so will be gutted if I have mis-read the potential demand to learn more about what I do - GULP !

and my webdesigner will be out of a job....hahahahaha


N

 

[NVP]

2 out of 3 decent signals on the london early session ...........

3 didnt really extrapolate and is a big warning we may be changing direction soon...in fact we are nearly in position re an opposing signals now :smart:

N

 

[NVP]

i'd be tempted to take a G/U buy soon as its shaping up nicely...wait for the Yen and usd to be south though on 80/20's

 

[NVP]

ready to rumble ?

 

[NVP]

rolling the dice

 

[NVP]

15 pips on either will do me with b/e set at 10 pips net and clear afer spreads

 

[NVP]

G/u already hit ......i'll let AUD run a little

 

[NVP]

ive got a meeting soon so coming out so will take my pips and run

hope this is interesting for all watching :smart:

later

N

 

[NVP]

always smash and grab on the 5mins ............smash and grab !!

N

 

[NVP]

hey G

happy to chew the cud my friend :smart:

Correlation can exist between more than 2 entities

I dont feel sure I can earn money in Forex

you cant forsee that a price will bounce off anything....ranges and bands can be interesting though on paircharts and indeed Individual currencies

and the market is both irrational and rational 24/7 365 days a year....thats what makes it such a challenge

so - tell me what you think works and what doesnt

N

hmmm - perhaps I do a little

 

[flipper26]

hello ?

shame as I fancied a nice chat about correlation :|

guys and girls......my webdesigner and other associates are telling me that no one interacts much on this thread so what am I doing here

I see nearly 200,000 views now so I struggle a bit myself to explain this ...unless its that clear now that everyone understands what I do ??

seriously if you fancy posting some questions I am happy to answer..I am investing a lot of time and effort in my forthcoming website so will be gutted if I have mis-read the potential demand to learn more about what I do - GULP !

and my webdesigner will be out of a job....hahahahaha


N

I definitely don't understand all that you do. Have been looking forward to the website where all is in one place with your trading rules, etc. I've been through alot of posts on this and other sites and it's difficult to pull everything together - what's the latest indicator, template, rules, etc, as modifications and improvements happen over time. Have been trying out some of your correlators in demo and just recently added your rules re: DOW. It's been very interesting. I am working on my entries/exits and sticking to the rules - perhaps this will get better with practice. I really appreciate all of your posts and the charts - the visual really helps to understand what's happening.

 

[NVP]

thanks F

this is really really good feedback

I have been blindly posting here day in day out and not understanding my viewers :whistling

I will make sure everything is taken on board re documentation on my website

My recent issue has been transitioning everything there so we have everything in one place and multifunctional like videos , links , files etc etc

i'm on the case !!

N

 

[NVP]

heres the recent move on the 5mins

N

 

[FaizanKauser]

AUD was very impressive today

 

[NVP]

yep AUD is looking good

see how steady that move is ........verses all that other currency volatility ?

thats what keeps you in the trade and not chopped out on a ride

AUD is a nice steady currency normally

Regards
Neil

 

[flipper26]

heres the recent move on the 5mins

N

On the 4 currency charts on the righthand side, what periods are you using for the 2 moving average lines? Thanks

 

[NVP]

hey all

the 2 fxcorrelators are set on

20ma delta 1
80ma delta 1


the dow is set on

20 sma
80sma

N

 

[NVP]

all the currency paircharts should have 80sma and 20sma as well

if not god knows .........I drag these poor guys all over the place with variations !!

N