Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

hey all

i'm back with limited access :clap:

load my FXcorrelator indicator here on this thread or go to my profile for my FXcorrelator free website address and go there for access to it

then set it on a 500ma 4hr TF and you will see this

now altogether lets sing a little song :-

"pack up all my cares and woes
here I go signing low......BYE BYE EURO"


N

 

[NVP]

hey all

I have continued IT issues

no updates today

sorry
N


more ises

 

[NVP]

jees i'm still struggling with IT issues but getting there

this week we saw the Dow start positive then slowly flatten and show some bear threats by EOW..despite the great Employment figures....hmmmmm

yen and usd started south but became progressively bullish through the week and there was nice action on the 80/20 system this week on most timeframes

the 1hr TF below is on a 500ma setting to show main currency movements alongside a 1hr Dow30 (with 80sma ,20 sma)

Euro getting buried (RIP)
Yen and USD picking up steam

boyoboy if Equities fold next week the USD buy will be the Play ....and yen of course but beware BOJ making any sell noises !

Have a good weekend
N

 

[NVP]

Whats all this market noise on a Euro "rally" ?

hmmmm

I need the Euro to breach North of that Line shown Below ...and I Need the Dow heading towards 12,500 before I can get excited

N

 

[NVP]

2012 is here and at last I may get a better rate when holidaying in Europe for many a year

although the weekly FXCorrelator (500ma setting) shows the red GBP line is still the G8 poor relation and the Blue Euro is the one falling through the Ranks.....

N

 

[NVP]

hey all

as some of you who follow me know .....my dear friend, Business Partner and IT guru Sylvie has been very very ill

Well sylvie now needs a lot of rest for the next couple of months or so ....but she is now hopefully
off of the critical list

Best wishes to Sylvie from all of us and one day soon we will all be Trading together again



N
x

 

[NVP]

another new week is here and the weekend press Scream

SELL EURO !!!!


hmmmm......as usual I told my Corrie Crew to "Trade what you see" and forget the Hype

......looks like no one told the Blue line Euro to fall this week ? :whistling

N

 

[NVP]

hey all

heres the last 2 weeks on the 1hr TF's ....thats a 500ma corrie on the right

OBSERVATIONS

see how the Rising Dow is gradually sending the yellow yen and green usd south ?

slow work though and in by own books the yen and usd are not falling fast enough for me !!

and can you see the solid Buy currency ?
The Blue Euro !

Orange Aussie D being uncharacteristically weak....they have a lot of domestic issues

Red GBP doing well this week........rule britania !

Grey CHF is following Euro as they continue to peg.....c'mon boys cut it lose again !

Forex Markets ?.........ya gotta lovem !

N

 

[NVP]

hey Gang

the principle of my trading is very simple

ony trade when :-
The dow is rising and the yen and usd are falling
The dow is falling and the yen and usd are rising
chose a currency opposing the yen and usd direction

thats it……..the rest is detail and taught in my websites…..

this week was a classic example of good signals with Dow generally rising and the yen and usd generally falling

FXCorrelator MA’s to use …..80/20 ? 5/20 ? 13/55 ?

or....use the 500ma setting and look for horizontal breaches of support and resistance of individual currency lines ?

Chosing above is experimenting until you eventually decide or feel comfortable with something…..

me ?…….I have millions of options and no favourite ….but the 80/20 system is my fallback and reference point….always !

have a good day and heres the recent 1hr & 4hr action :smart:

N

 

[NVP]

is momentum finally slowing on the Yen&Usd trains south ?

here a 1hr chart using my FXcorrelator on the right

the Yellow line is the yen and the Green line is the USD

see the momentum slowing ?

after a real nice run selling then last week it looks time to tighten ?

hmmmm
N

 

[NVP]

hey all

FYI - This is the MT4 Strengthmeter equivalent of the Holy scrolls .....:smart:

Theoretical Basis of Building Cluster Indicators for FOREX - MQL4 Articles
Practical Application of Cluster Indicators in FOREX - MQL4 Articles

N

 

[granola]

Hi,

I'm a bit of a newbie, I'll admit

I've been reading this thread for a few days now and I'm still a ways from opening a live account, but I find correlation trading very interesting.

I have been playing around with the MT4 platform for a few weeks and have added several indicators, EAs etc., but I'm having a heck of a time installing and loading the FXCorrelator.

Could you give me a quick simple step by step, I'm sure I'm just missing one tiny thing...

Thanks and I love reading all of your posts!

Charles

 

[NVP]

Hi,

I'm a bit of a newbie, I'll admit

I've been reading this thread for a few days now and I'm still a ways from opening a live account, but I find correlation trading very interesting.

I have been playing around with the MT4 platform for a few weeks and have added several indicators, EAs etc., but I'm having a heck of a time installing and loading the FXCorrelator.

Could you give me a quick simple step by step, I'm sure I'm just missing one tiny thing...

Thanks and I love reading all of your posts!

Charles

Hey Charles

welcome to trading !

I use strengthmeters like others use paircharts......

personally I see no interest in looking at a PAIRchart when the real truth lies in looking at the strength and direction of the 2 underlying currencies concerned !

.....oh yeah and then I sprinkle in some Correlation behaviour between those currencies and the Equities market to set my trades !..........

have a look here my friend and the stuff loaded in the various areas here ....including my latest FXcorrelator indicator....let me know if any problems :smart:

http://fxcorrelator.com/corrie2/

N

 

[NVP]

ok continuing my comments from last post.................

What do I mean by a Strengthmeter Giving much more information verses a PAIRchart?.........................

ok heres a Nice Daily AUDUSD trend ............

figure you can tell me whats going on ?

So tell me what is the Stronger currency here ? :smart:

 

[NVP]

AUD......?

yep - 10/10



Fine - now tell me what currency is providing most pips to the move .............AUD's strength or USD's Weakness ?

N

 

[NVP]

does it matter ?

 

[NVP]

Does it matter !!?.........hmmmmm

(P.S. Its USD's Weakness that is providing the big pip moves on the AUDUSD Daily move...see chart below)

N

 

[NVP]

hey.....it matters to me....big time...24/7.....

I have to understand the relationship and dynamics of the G8 currencies..to each other and to the Dow.......

otherwise to me I am Trading blind on 1 dimensional paircharts ! :smart:

 

[danjuma]

Hello NVP,
Just 2 or 3 questions please:
1. Is the free FXCorrelator indicator on your blog Free FXCorrelator Indicator & Video |FXCORRELATOR, the most up-to-date?

2. For your 80/20 system, which time frame(s) do you use?

3. Would the DJ-30 be the same thing as the US30 (DOW) you use? I can't seem to get this - US30 - on the MT4 platform I am using, so was going to use the free charts on FreeStockCharts.com, but can't get the US30 either, but got amongst others the DJ-30, which prices seem similar to the US30 in your examples.

Many thanks
Dan

 

[deebee1]

Hello NVP,
Just 2 or 3 questions please:
1. Is the free FXCorrelator indicator on your blog Free FXCorrelator Indicator & Video |FXCORRELATOR, the most up-to-date?

2. For your 80/20 system, which time frame(s) do you use?

3. Would the DJ-30 be the same thing as the US30 (DOW) you use? I can't seem to get this - US30 - on the MT4 platform I am using, so was going to use the free charts on FreeStockCharts.com, but can't get the US30 either, but got amongst others the DJ-30, which prices seem similar to the US30 in your examples.

Many thanks
Dan

the dj-30 is the us30!