Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

hey all

ive been looking at Strengthmeters and correlation now for many many years (since the early 2000's)

and I have been sharing stuff here for free for over 3 years and also more recently on my website and a few videos at YouTube :smart:

FOLLOW THE RULES|FXCORRELATOR


Why ?

well without the discipline of painfully public posting,being an author and Training/being responsible to students....I wouldnt be here - as it focuses me a lot .....and I also receive back a lot more than I ever give in terms of knowledge and ideas !

I have literally hundreds of systems and indicators in the tank that I would never have found without other peoples kind help and incredible abilities at trading....!

so back to business - heres last week on the 1hr chart

simple - Brutal - profitable !

Have a great weekend

Neil
NVP

 

[NVP]

Gold - predictable and profitable move

Gold falls on friday |FXCORRELATOR

 

[NVP]

hey all

sorry - late on duty due to other matters

heres the 1hr .........a little retracing from the Dow should mean opportunities to sell USD and Yen on lower TF's (15m/5m)

USD looks strong ............I havnt checked but I suspect the recently vocal BoJ have tried to dump yen overnight .....and bought USD naturally in the process to show such a strange picture on the FXcorrelator - in simple terms - a USD and Yen divorce !

anyway watch the plays later .........as the asian market closes out the response will be probably some reversals on that Yen collapse......I cant see that Yen/USD gap remaining all day ..especially if dow starts to fold south again

later
N

 

[NVP]

nice moves now on the lower TF's ......Dow is still hungry to rise off that recent bounce below

so why deny it ?
N

 

[NVP]

but contrarianly ...watch the bounce of the Dow now at that Reisistance level its just breached

jees trading is difficult....eh ?

N

 

[NVP]

remember..markets rarely move in a straight line

up, down, up, down....its all cyclical flow ...and any Trend or bias is merely that one side of the flow is stronger than the other...it still is cyclical and you get pullbacks

like a heartbeat .........you must remember that if you enter the trade towards the top of a stronger cycle ...you will get STILL drawdown initially ....its part of the game

N

 

[NVP]

my website is under attack again from Trojans and malware ..whatever this is

the last straw with my current service provider GRRRRRRR

so sorry - be careful if you log in

N

 

[NVP]

last update then have to scoot for a while

see here on 15m ?

Bounce back off of that resistance level on the Dow
(cycle cycle cycle !)

Now lets see if the Dow can exit that area (north?) and we finally get the USD a little weaker (?)

N

 

[NVP]

ps - one more observation - this time on the U/J....

if Dow folds south now - I predict one hell of a retrace on U/J

N

 

[Chonchy]

ps - one more observation - this time on the U/J....

if Dow folds south now - I predict one hell of a retrace on U/J

N

......Hello NVP, nice to meet you Sr., I'm new here, what is your take on the e/u, thanks in advance......I think this resistance is strong, if pass, we may see 31XX again.......if not it may fall, what do you think Sr.

 

[Chonchy]

......Hello NVP, nice to meet you Sr., I'm new here, what is your take on the e/u, thanks in advance......I think this resistance is strong, if pass, we may see 31XX again.......if not it may fall, what do you think Sr.

View attachment 147926

......if it pass 3075 I may go long here with a stop at 3050........

 

[NVP]

hey there conchy !

i'm generally bullish on Euro at present based on higher Timeframes

if that Daily Dow (left chart) now kicks north then euro should comfortably stay a buy against USD and Yen - especially if Boj dump more Yen this week :smart:

N

 

[NVP]

......if it pass 3075 I may go long here with a stop at 3050........



View attachment 147928

good luck with this ..........I only use paircharts to enter and exit trades ..my screens are filled with Strengthmeters !

1 FXCorrelator chart represents the combined signals from watching about 28 paircharts

N

 

[Chonchy]

good luck with this ..........I only use paircharts to enter and exit trades ..my screens are filled with Strengthmeters !

1 FXCorrelator chart represents the combined signals from watching about 28 paircharts

N

yes Sr. currency meters are very good I used to use one a while back with great results, I agree with you and the correlation of the Dow and e/u and e/j if Dow goes up they also will usualy go up, e/u is in very strong level of resistance right now, a big fight here lol, let see if it breakes, good luck to you too Sr. and thanks for you quick replay, nice to meet you ......

 

[NVP]

heeeeres Boris .........


The other day my friend Jamie Saettele posted on Twitter that he made 180 pips on the recent EURUSD rise, to which I replied , "Me too, but mine were in 5 pips increments . " Jamie and I have been friends for a long time but agree on almost nothing. He is a solid Midwest conservative and I am the quintessential Northeast liberal. He trades almost exclusively off technicals favoring the arcana of Elliot Wave while ignoring all headlines. I almost always try to follow the story of the day and look at price action to support my decision.


Most importantly Jamie is a decidedly long ball hitter while I will chip and bunt and scratch my way to the plate. Jamie's trades are often multi-hundred point affairs that can last days and sometimes weeks. Mine rarely exceed 10 points and rarely take more than a few hours to resolve. Despite the differences we both manage to do ok. As Jamie tweeted back, "There are many ways to play the game."

In trading there are indeed many ways to play the game, but there is only true way to success. You either trade scared or you trade greedy. In trading neither one of those terms is used pejoratively but is simply an honest assessment of your personal style. I, for example, will never make hundreds of pips from a trade. I simply don't have the mindset to press my position. On the other hand I will never, ever lose more than 50 points on any trade. In short I am always trading scared. I am perfectly happy to increase my account by 5 pips at a time. That may seem arduous and tedious to some of you, but its perfectly fine for me.

Jamie on the other hand can milk the trade with enormous patience. He is perfectly happy trading "greedy" and although I haven't looked at his account in ages I am sure his equity swings are much larger than mine. He may make in one trade what I make in fifty.

The point however, is that you need to know what kind of a trader you will be. You can trade scared or you can trade greedy, but you can't do both. That's the number one problem of any novice trader. They try to be greedy when it comes to profits and scared when it comes to losses. Alas it just doesn't work that way. As Clint Eastwood once said, "A man's got to know his limitations." A trader must do the same.

 

[NVP]

yes Sr. currency meters are very good I used to use one a while back with great results, I agree with you and the correlation of the Dow and e/u and e/j if Dow goes up they also will usualy go up, e/u is in very strong level of resistance right now, a big fight here lol, let see if it breakes, good luck to you too Sr. and thanks for you quick replay, nice to meet you ......

mutual - Good trading my friend

N

 

[NVP]

sadly in meetings all afternoon.....grrrrr !

talk later
N

 

[Chonchy]

mutual - Good trading my friend

N

the same sr. good trading to you as well.......

 

[Chonchy]

sadly in meetings all afternoon.....grrrrr !

talk later
N

......good luck Sr. later....

 

[Chonchy]

heeeeres Boris .........


The other day my friend Jamie Saettele posted on Twitter that he made 180 pips on the recent EURUSD rise, to which I replied , "Me too, but mine were in 5 pips increments . " Jamie and I have been friends for a long time but agree on almost nothing. He is a solid Midwest conservative and I am the quintessential Northeast liberal. He trades almost exclusively off technicals favoring the arcana of Elliot Wave while ignoring all headlines. I almost always try to follow the story of the day and look at price action to support my decision.


Most importantly Jamie is a decidedly long ball hitter while I will chip and bunt and scratch my way to the plate. Jamie's trades are often multi-hundred point affairs that can last days and sometimes weeks. Mine rarely exceed 10 points and rarely take more than a few hours to resolve. Despite the differences we both manage to do ok. As Jamie tweeted back, "There are many ways to play the game."

In trading there are indeed many ways to play the game, but there is only true way to success. You either trade scared or you trade greedy. In trading neither one of those terms is used pejoratively but is simply an honest assessment of your personal style. I, for example, will never make hundreds of pips from a trade. I simply don't have the mindset to press my position. On the other hand I will never, ever lose more than 50 points on any trade. In short I am always trading scared. I am perfectly happy to increase my account by 5 pips at a time. That may seem arduous and tedious to some of you, but its perfectly fine for me.

Jamie on the other hand can milk the trade with enormous patience. He is perfectly happy trading "greedy" and although I haven't looked at his account in ages I am sure his equity swings are much larger than mine. He may make in one trade what I make in fifty.

The point however, is that you need to know what kind of a trader you will be. You can trade scared or you can trade greedy, but you can't do both. That's the number one problem of any novice trader. They try to be greedy when it comes to profits and scared when it comes to losses. Alas it just doesn't work that way. As Clint Eastwood once said, "A man's got to know his limitations." A trader must do the same.

very good post Sr. yes in deed there is many ways to skin the cat, thanks for the post sr. I apricite it.......