Best Thread Correlation Trading - Basic Ideas and Strategies

NVP

Legendary member
good start to the year ....JPY has been very active in asian session

USD is booming from london opens
 

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NVP

Legendary member
US session now...USD faded hard in london session
 

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NVP

Legendary member
solid bull run by AUD in asian session and USD has tanked early london ......

excellent start to 2023 !
 

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NVP

Legendary member
nice London session dominated by early USD sells .....excellent
 

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NVP

Legendary member
nice bull action on JPY in asian session ...CAD selling hard......relatively quiet london session so far .....
 

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NVP

Legendary member
Forex Diary Week ending 6th Jan 2023

Bull
yellow JPY initially , Green USd midweek, Brown CAD at the end

Bear
Red GBP initially , Blue euro, Yellow JPY into week end

rollercoaster week....USD got hit on NFPs

N
 

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Last edited:

gka

Experienced member
Hi NVP and readers of this thread, I thought I would share my observations of three major FX pairs for Friday 6th January, the day of the US NFP and Unemployment Rate.

I attach three hourly charts for GBPUSD, EURGBP and EURUSD that form the triplet for arbitrage. The levels shown in the charts were calculated Thursday evening after the close in New York and were valid for the next 24 hours. The levels in the charts are calculated using a mapping between daily candlesticks for each FX pair. Chart times are London local time minus 4 hours.

From the charts you can see that:
  1. GBPUSD made its low of the day at the level 1.1841 in the 07:00 hour. I have the GBPUSD low for the day as 1.18412
  2. EURGBP made its high of the day at the level 0.8871 in the 06:00 hour. I have the EURGBP high for the day as 0.88715
  3. The high and low for EURUSD were delayed and not about its predicted levels
The figures for the US NFP and the Unemployment Rate were both better than expected so one would assume that this would create a buy USD sentiment. Instead the GBPUSD continued to be bought and EURGBP continued to be sold. Friday was a buy GBP day.

You can also see that EURUSD was following GBPUSD. That means that trading EURUSD was impossible without taking into account that GBPUSD was taking the lead.

Finally the NFP news was essentially ignored by the markets and they continued with their buying GBP sentiment.

gka
 

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NVP

Legendary member
what a days trading ...the JPY has been unstoppable since Asian open .....

N
 

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NVP

Legendary member
Hi NVP and readers of this thread, I thought I would share my observations of three major FX pairs for Friday 6th January, the day of the US NFP and Unemployment Rate.

I attach three hourly charts for GBPUSD, EURGBP and EURUSD that form the triplet for arbitrage. The levels shown in the charts were calculated Thursday evening after the close in New York and were valid for the next 24 hours. The levels in the charts are calculated using a mapping between daily candlesticks for each FX pair. Chart times are London local time minus 4 hours.

From the charts you can see that:
  1. GBPUSD made its low of the day at the level 1.1841 in the 07:00 hour. I have the GBPUSD low for the day as 1.18412
  2. EURGBP made its high of the day at the level 0.8871 in the 06:00 hour. I have the EURGBP high for the day as 0.88715
  3. The high and low for EURUSD were delayed and not about its predicted levels
The figures for the US NFP and the Unemployment Rate were both better than expected so one would assume that this would create a buy USD sentiment. Instead the GBPUSD continued to be bought and EURGBP continued to be sold. Friday was a buy GBP day.

You can also see that EURUSD was following GBPUSD. That means that trading EURUSD was impossible without taking into account that GBPUSD was taking the lead.

Finally the NFP news was essentially ignored by the markets and they continued with their buying GBP sentiment.

gka
interesting - thanks !

I put a fixstart onto the GU pair and retraced it back to that days trading - ive isolated just the green USD , blue Euro and the red GBP

I saw this on the day :-

GU hit days low at 11:45 GMT (maybe my platform)

NFP impact initially saw all 3 currencies fall slightly ...all correlated

then around 3pm GMT a real move ....GBP went Hot , USD went hard Bear and Euro stayed neutral

Sell USD against other currencies
Buy GBP against other currencies
BIG PLAY GBPUSD Buy

the Neutral Euro would not have been in play for me on any pair at the time

nice days action once it warmed up !

N
 

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NVP

Legendary member
one of my mentors used to play those 3 currencies as a triangle ...he posted on here way back in the day

N
 

NVP

Legendary member
again the JPY is flying today .....Euro the sell on FXPS 15m
 

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NVP

Legendary member
Forex Diary Week ending 20th Jan 2023


Bears
dominated by yellow JPY......Brown CAD on Thursday

Bulls
Red GBP gradually , Early grey CHF and turquoise NZD....

rollercoaster week for JPY....GBP finished strong


N
 

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Inquisitor

Active member
What is the use of posting "after the event" comments about the forex market? It's as much use as stating what the lottery numbers were on a Monday for the previous Saturday. Just in case anyone is interested, the numbers were:
07 - 09 - 14 - 21 - 30 - 57 and the Bonus ball was 18
 
 
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