Best Thread Correlation Trading - Basic Ideas and Strategies

[FaizanKauser]

yes - it (and higher MA values - higher the better) provide a much more PURE view of the individual currencies Exact movements bar by bar.....so that you can then apply Price action Techniques to them

(support & resistance levels , higher highs, lower lows etc etc)

essential part of the toolbox :smart:

N

So resistance lines at 0.1 0.2 0.3 0.4 0.5 and if available 0.6 hmmm its good especially when currencies go past them as they come back to the 0 line good signals can be found and good trades ... Dow's one of my favourites now

F

 

[NVP]

predictable overnights........and swissie is under attack again :smart:


N

 

[NVP]

So resistance lines at 0.1 0.2 0.3 0.4 0.5 and if available 0.6 hmmm its good especially when currencies go past them as they come back to the 0 line good signals can be found and good trades ... Dow's one of my favourites now

F

hey F

there are some 500ma templates on this thread somewhere so have a search for them :smart:

the outer bands signify overbought/sold areas where get I get nervous of extending trades

there is also work on convergence based trading

aside from that just load on lines where/when you feel it signfies it will trigger a trade

N

 

[NVP]

this is what I mean by hunting potential convergence plays

1) identify overbought/sold currencies by their bad position
2) wait for price action confirmation they are retracing
3) use Dow correlation / signal to confirm the move

N:smart:

 

[FaizanKauser]

hey F

there are some 500ma templates on this thread somewhere so have a search for them :smart:

the outer bands signify overbought/sold areas where get I get nervous of extending trades

there is also work on convergence based trading

aside from that just load on lines where/when you feel it signfies it will trigger a trade

N

Aha yeah I'll try locating the templates in the thread and yeah, very similar to an oscillator, the currency will come back one time, just need patience

F

 

[FaizanKauser]

Need the dow to fall, so the USD/YEN can rise above the 0 line, creating signals and moneeyyy
F

 

[NVP]

Need the dow to fall, so the USD/YEN can rise above the 0 line, creating signals and moneeyyy
F

what F ?

the 4 hours of dow futures rising was not good enough for you ?

jees - tough crowd here !

N

 

[NVP]

Dow she go up , YEN & USD they go down

pips follow...........

N

 

[NVP]

sorry - i'm mega busy today so no realtime trading fun

doh.....
N

 

[FaizanKauser]

Doh thats fine

Usd yen going north, gbp south

F

 

[NVP]

hey all

one of our correlation compardres is pretty sick in hospital right now.....

so Mags...we are all thinking of you here and get well soon girl

N

 

[NVP]

Doh thats fine

Usd yen going north, gbp south

F

Hey

all those pips youve been making recently means actually you can make up whatever rules you like

Nn

 

[FaizanKauser]

hey all

one of our correlation compardres is pretty sick in hospital right now.....

so Mags...we are all thinking of you here and get well soon girl

N

Get well soon Mag, all the best :thumbsup

Hmm this CHF, don't know what to do with it .. :whistling

 

[FaizanKauser]

CHF falling....

 

[NVP]

if the SNB are still in the market selling (?)..... then you should only be looking for trading scenarios to sell the chf.....driven by a rising Dow usually, and you are then in safeish water

having said that the SNB will also be looking to balance positions from their ongoing selling spree (from selling CHF when the markets are falling)......so they will be looking for opportunities to buy the Swissie back in times when it looks cheapest (usually when the dow is rising)

net effect is you may get less bang for your buck selling swissie than normal (but safer than buying it)

messy messy messy and a dangerous Game ....as if SNB step out the volalility explodes again

N

 

[NVP]

if in doubt dont trade it !

follow the rules and trade the yen and usd against the others on the 80/20

CHF is on fire and needs special handling
N

 

[FaizanKauser]

Just traded the AUD right now, got about 60 pips from it.. Didn't bother with the CHF too dangerous :O

F

 

[NVP]

Excellent !

why try to jump in the bonfire when the smaller fireworks are working just fine !

N

 

[NVP]

later all - duty calls elsewhere

 

[FaizanKauser]

Excellent !

why try to jump in the bonfire when the smaller fireworks are working just fine !

N

Yeah it's the little things that count at the end of the day, especially in trading, I actually tried trading the CHF, -80 pips