Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

there it is folks the eur/usd usd/chf have hit the targets. so to bad i skiped the trade that would have been 100 to 120 pips depending on where you set targets.

still in on the other i have no doubt it will get there jsut take some time

mike

Hi Mike

disgraceful......I expect at least 100 pips a trade..........

N

 

[jrplimited]

Hi N,

Only 100 pips per trade? If someone (anyone....?) was using the wonderful $2k CC system, surely this would be a minimum of 4 or 500 piptastics profit a trade?!! I saw on another forum that some CC users were complaining that only part of the indicator set had been released plus customer support is non existent - oh dear, sounds like trouble at mill there....

Stopped trading briefly to post what I "see" compared to what you are seeing in between bouts of your normal day work. The awful euro rouble has increased its run against our great british peso (shock and horror to those booking holidays in Mallorca) and the green back stands out very strongly on these two - I've been short on E/U, G/U and long on E/U without any glitches thus far today.

As of writing this post, I cant see any ceiling for the E/G although its starting to slow down now and G/U doent look like forming any floor until our cousins join in on the bun fight. E/U seems to have attempted a stop-rot around the 4875 ish value, but that was very short (pardon the pun) lived as it carried on south bound. How are you seeing this lot?

Trade well and regards,
Simon.

 

[NVP]

Friday action !

Hi all

nice morning so far..........damn obvious what to be doing so i'll leave it
to the chart

1mins were so radical they were off the chart so heres just the 5m and 30m (on the 1000/1) + the risk chart on the 5m (14/3)

Re the index chart on the right (14/3 corrie on 5m) See how all the Stocks + Crude and Gold are way below the Zero line ?....this means that every one of them is trading way below their own 20MA's and falling nicely !

this supports the Tag rise we are seeing so far.....but for how long ?

N

 

[NVP]

Hi N,

Only 100 pips per trade? If someone (anyone....?) was using the wonderful $2k CC system, surely this would be a minimum of 4 or 500 piptastics profit a trade?!! I saw on another forum that some CC users were complaining that only part of the indicator set had been released plus customer support is non existent - oh dear, sounds like trouble at mill there....

Stopped trading briefly to post what I "see" compared to what you are seeing in between bouts of your normal day work. The awful euro rouble has increased its run against our great british peso (shock and horror to those booking holidays in Mallorca) and the green back stands out very strongly on these two - I've been short on E/U, G/U and long on E/U without any glitches thus far today.

As of writing this post, I cant see any ceiling for the E/G although its starting to slow down now and G/U doent look like forming any floor until our cousins join in on the bun fight. E/U seems to have attempted a stop-rot around the 4875 ish value, but that was very short (pardon the pun) lived as it carried on south bound. How are you seeing this lot?

Trade well and regards,
Simon.

sorry mate missed this first time around !

aside from post I've just made lets have a peek on 4h to give us a clue...

4H chart (4h on 1000/1)

hmmm ... the tag team are flying arnt they !...both testing the highs back to september on charts so perhaps a breather is imminent ?...Euro seems happy enough following them at the moment thereby helping to trounce GBP and AUD at the moment
(funny re Aus falling as its been looking great for a long time)

the 4Hr index chart...(4h on 14/3)

second chart is the indexes on the 4h...Tag team show exactly as acorrie (well a 14/3 setting version) but all those other dudes are the stock and commodity indexes where the dotted horiz = their movement above/below their respective 20MA's.......Gold just joined the rest of the Gang below the 20ma and look at the Tag turning again to head north.....full confirmation of Tag domination and risk aversion currently in big demand today !

until we see some hesitation of the Tag its buy buy buy them......people are dumping the markets ahead of the weekend ?

N

PS just as a training on corrie note here ....look at the tag team...both charts are the 4 hour but look at how on the right chart (set on a much Faster Ma setting) the Tag swing-up and down more than the slower Ma left hand chart.......same as standard pair chart with some differing Ma's added.....the price will swing much more around the low MA's than the higher ones) :smart:

 

[NVP]

Hi N,

As of writing this post, I cant see any ceiling for the E/G although its starting to slow down now and G/U doent look like forming any floor until our cousins join in on the bun fight. E/U seems to have attempted a stop-rot around the 4875 ish value, but that was very short (pardon the pun) lived as it carried on south bound. How are you seeing this lot?

Trade well and regards,
Simon.

the E/G gap will close when (if?) the tag team turn....under normal market conditions the GBP should continue to fall faster than the euro with Tag still climbing as it is more volatile.....

add to that the Euro is actually following the Tag at the moment the GBP is about as popular as a f*rt in a spacesuit...

N

 

[NVP]

another quick peek........

3 charts 1000/1 settings on (left to right) 1m 5m 30m

hmmmm......look at sterling...not exactly ripping back up is it !
(unlike Euro and AUD that are at least making the effort !)

GBP is very weak and if tag team resumes journey it will fall like a stone again

JRP that E/G looks like a safe trade for a while yet !

N

 

[jrplimited]

Hi N,

Yeah, took a lovely bounce back up trade on E/G about 30 minutes or so ago. G and E look to have fond a floor for now so its a wait and see job here.

Trade well and regards,
Simon.

 

[NVP]

What goes up......

must come dooowwwnnn...

Tag team retracing a little.....Aussie D is lurving it !

not convinced about the euro on this fightback.....but even less on the GBP ....hes really off his dinner today

when (if?) tag turns the GBP will look very bearish again

N

 

[NVP]

Watch out GBP is stirring !!

could have woken up !....just needs a little more stimulous from the
tag team falling more....

N

 

[NVP]

Yep.......

yep GBP (and Euro) are slowly fighting back...but its real slow process

GBP gradually making some inroads now into euro and AussieD

just need the Tag to reconfirm the downward move on the 1 min (by breaching that very recent LL)....and we are in business !!


N

 

[NVP]

signing off for weekend !

hey all

off to the coast for the weekend (god help me) so offline

back hopefully on sunday night

Cheers
N

 

[mikebondi]

and here we go again folks another beautiful week. hows everyone feel about thanksgiving. is it gonna affect our trades a ton.

 

[NVP]

and here we go again folks another beautiful week. hows everyone feel about thanksgiving. is it gonna affect our trades a ton.

Hey mate

seeing the time of this post I assume you live in the US of A !

excuse us in blighty but we dont tend to celebrate this holiday

but of course it does affect the markets.....

N

 

[NVP]

GOLD as a currency....

Hi all

Someone was asking about my longer term analysis and comments last week and particularly how was gold looking as an alternative to currencies

good question and remember this Thread is about all correlations so feel free to ask more like this

I do carry a few alternative indicators with gold in the mix, valuing it as if it were a
standard currency (ie just the same as all USD pairs)...making this corrie a G9

heres what I see on my 4h GLD_corrie (1000/2 setting) since August...swissie dropped off the chart to show gold in Purple....(no offence meant grey fox !)

anyone in despute now who is really king of the currencies at the moment ? :smart:

in August gold was languishing in the bottom half with Yen and USD .....given that the USD was low and Gold at this point was looking cheap anyway , its not surprising that gold has picked up dramatically , given that USD has stayed bearish....this combo made Gold "as cheap as chips" to other currencies and has represented a great trading opportunity......especially if you were in the UK.........offloading your sterling (red) in August at its "High" and moving into gold would make you a lot richer than you are now !


but for how long ?

N

 

[NVP]

The week ahead

ok sports fans heres the 1h corrie on a 1000/1

I will add some comments later....but anyone want to tell me what they see or
predicts gonna happen this week ?

last week GBP and AUD got a real battering ...more of the same for them this week ? :whistling

N

 

[NVP]

Day trading with the corrie

I also got a chance to catch up with my reading as well over the very wet and windy weekend in the UK....

Lance Beggs (YourTradingCoach.com) has an excellent blog/education site and I liked this quote particularly as it strikes a big correlation chord for me...and I am a fan of Kathy and Boris !

Today's Trading Quote (Kathy Lien)

"One of the most widely overlooked yet lucrative areas of trading is market structure. Developing a keen understanding of micro structure and dynamics allows traders to gain an unbelievable advantage and is probably one of the most reliable tactics for profiting from intraday fluctuations."

I found more extracts from Kathy Liens book above and it has a section on correlation
(see below)

I agree with everything except when we start to talk about timeliness and relevence of correlation data.........a daytrader using a monthly correlation index to trade is like using a calendar to time your 3 min egg

N

 

[NVP]

Todays action !

wow..........ive expanded the 1h below ...the tag team are getting creamed and have already fallen below a decent support level created last week

I suspect they will rally a little soon so tighten your stops , but if they dont go back above that marker and support becomes resistance it could be a long and painful day for them both !

Sterling is making most bacon (as you would expect) so no surprises there...then a steady Euro
with AUD pretty neutral (has the AUD been dating the swissie ? )

N

 

[NVP]

similar chart to above with lines.....

this is my point on the 1hour chart 1000/1......now will those lines hold as Resistance or was it just a small overrun and they are still support lines (albeit a little fuzzy) just waiting now to send the tag team back north ???

N

 

[NVP]

Hi all

dropped to the 30m on the right for more granularity

the GBP is not missing a beat here so it has a lot of strength even with Tag consolidating a little...hmm if tag falls and does not breach the resistance lines shone on the 30m its the trade to be on I suspect !

N

 

[NVP]

Its to damn quiet.......!!

now gone flat as a pancake...............cue US opening then !

N