Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

No, no, I'm still here but trying to get some of the posts sorted in my mind.

Looking elsewhere for a little light relief. All work...etc

phreddy ....we knew you wouldnt desert us !

take your time and it will gradually fall into place slowly.....I am asking people to forget pair charts and try something pretty new as a way of looking at the markets .......and that is an uncomfortable experience !!

many great traders have said the way to be sucessful in trading is to try to look at the market in
a different way to the majority......so we are trying here on this thread !

fire questions at us here and I will try to answer them if I can

N

 

[NVP]

morning all


im posting this to align with the 7.15 am bar range signal so lets see what happens today !

overnight was actually the most volatile ive seen it for a long time re moves in the very early hours (not just warming up from 5am onwards)...the nikkei was falling slowly all through the o/n session (approx 50 points) into the close and fell to the 20ma on its 1h charts...so no positivity there although not a disaster - more a retrace

the USD hasnt been to these levels on the corrie since the (H4) in may and the euro had not been this low since july and then Feb so interesting territories being entered

anyway lets get to business....as i release the bar below the GBP has just dumped mega pips to its pals (50 pips on the G/U) so buckle yourselves in for an interesting one today

STOP PRESS - the GBP has already hit the range breaches asa sell but given the big fall thats momentum.....let it retrace a little and let the markets confirm also if the selling will continue
be careful out there
N

 

[NVP]

gonna be hard work until that usd starts moving around.....its flat on the 5m !

gotta go.....later

N

 

[NVP]

9.35 update

hmmmm...........GBP finally has signalled some stronger intentions re south

few nice pips on selling the Euro since the range bar....

also look at that incredibly tight range that the G/U took until very recently when
again its dropped below the 7am 15m range bar

directionally the E/G has been correct in the first range breach but you would have been killed by now unless you had opend up a s/loss to the full 15m range bar.....30 pips !

today all the directions were right then - but it was the 2nd - 3rd breaches where the pips got made....hmmmm

oh well enjoy the rest of the morning......i'm tied up unfortunately

I leave you with GBP now resembling the freefall Elevator Ride at Alton park..........

N

 

[jrplimited]

Re: 9.35 update

Hi N and anyone (?) else out there,

Straight into it, just for a refreshing change!

G/U Flat as a pancake for first hour so I set a buy stop at 62377 and (using second DMA account to circumvent NFA hedging rule) a sell stop at 61882 as both of these seemed a fair representation of potential range breakout points from 08:00 to 09:00. Wow! Got filled short during 09:35 bar and price went screaming off down, consolidated a bit then carried on until taken out at 11:10 bar with TS for a healthy 62 pip profit.

E/U First trade short on 05:50 bar at 43914 after previous bar broke through that consolidation range and went into immediate MAE of about 12 pips or so, then price moved back down only to rise up again and challenge previous high point, then it went down with a bang and eventually took out my TS during 11:10 bar for 38 pips profit.

E/G Bit choppy to start off with. First trade was short on 09:00 bar at 88702 and after two bars price went into reverse gear and took out my SL during 09:35 bar for 16 pips loss. I thought about entering long after that 09:35 bar finished but dont normally trade on spike bars such as these so decided to leave this rather erratic pair alone. - shame really as price did indeed carry on upwards but thats retrospect for you!

As you mentioned in your early morning post N, its real wild and woolly out there today so I'm going to most likely just watch E/U this afternoon for any setups.

Trade well and regards,
Simon.

 

[phreddyinbg]

It has been a busy day. Don't know how I ever found the time to work full time!!
OK, getting some of these charts made and seeing the workings.
Another week and I will be ready to publish!!

Thanks again Simon and Neil

 

[NVP]

It has been a busy day. Don't know how I ever found the time to work full time!!
OK, getting some of these charts made and seeing the workings.
Another week and I will be ready to publish!!

Thanks again Simon and Neil

hey phreddy.........post whatever you want whenever you want ......doesnt have to be war and peace honestly !!

we are just happy to have some company sometimes.....this thread is amazingly quiet considering the resident professional trader delivers major and consistent pips on most days

I suppose its my buffoonery then holding us back.....

N

 

[NVP]

Re: 9.35 update

Hi N and anyone (?) else out there,

Straight into it, just for a refreshing change!

G/U a healthy 62 pip profit.

E/U 38 pips profit.

E/G 16 pips loss.

As you mentioned in your early morning post N, its real wild and woolly out there today so I'm going to most likely just watch E/U this afternoon for any setups.

Trade well and regards,
Simon.

Hi simon...great stuff from our Resident Professional trader

I just extracted the things above that should be making this thread attract 1,000 views A DAY !!!.........they'll all wake up in the end..........:whistling


gonna pm you later some interesting stuff on the G/U/E indicator weve been talking about.......

N

 

[jrplimited]

Re: 9.35 update

Hi N,

Welcome back to the dark side from your daytime job! Yes, days like today (although infrequent) make for good reading and apart from that rather (in hindsight) silly E/G trade this morning it was really a no-brainer.

Looking back at your corrie indy showed that although going short on E/G from chart looked fairly good, in fact the E was not as weak as it should have been in order to make this a "good" trade - ie U was the "master" this morning, therefore I should have been content to just short E and G....

Its that naffing hindsight thing again, think Ill go off and break a few more of wifey's valuable Christmas tree baubles - erm, better not as she will reciprocate on my own baubles!

Should be an interesting session tomorrow morning plus its my last real time session for this current year, so maybe finish off with a bang? Kiss of death there perhaps.

Trade well and regards,
Simon.

 

[NVP]

are we having fun yet ?

Well the euro certainly isnt.........its getting buried by the other 3 !

the chart on the left is a 30m indexcorrie on a much higher setting than normal that almost matches the main 1000/1 corrie settings over on the right hands side 30m chart

Ive removed the GBP and Euro lines leaving just USD to flow with the 5 markets....look at that lovely negative textbook correlation !...USD up and markets down

all you have to do then is jump on the currency exploiting this correlation the most....which is the Euro this afternoon.....Gbp is mainly playing follow the tag team so forget him !

N

 

[NVP]

Re: 9.35 update

Hi N,

Welcome back to the dark side from your daytime job! Yes, days like today (although infrequent) make for good reading and apart from that rather (in hindsight) silly E/G trade this morning it was really a no-brainer.

Looking back at your corrie indy showed that although going short on E/G from chart looked fairly good, in fact the E was not as weak as it should have been in order to make this a "good" trade - ie U was the "master" this morning, therefore I should have been content to just short E and G....

Trade well and regards,
Simon.

Hi mate

heres the 30m indexcorrie today with the Usd Gbp and Euro back on it all in bold.....

once the Euro stopped falling with some momentum (up to about 4am this morning)......it became flat for a long long time.....and restablished itself as the most boring of all the 4 currencies I show on the charts !

it takes two to tango for successful currrency trading and E/G trade became a 1 sided affair with the pips on any potential eurotrade only able to come from the other currency as Euro was not playing.....(Swissie is most notorious for this of course !)....hey - the Euro was even flatter yesterday !

in scalping you need momentum/contribution from both currencies in the pair to get you into a good break even position and then build on the trend/move.....

thats not to say that the Euro doesnt work in a scalping pair....but it only does when its got a little steam up...like it seems to be doing now downwards !

N

 

[NVP]

more euroflat

heres the normal corrie 1000/1 on a 30m this week

if you all want pumping volatility - dont call the Euro !

N

 

[NVP]

signing off for today......have a good evening all !

N

 

[NVP]

morning all......hope not to snowy where you are !

just loading the 15m bar for this first post.....(the yellow) horizontals

nice overnight rally on the Nikkei pushed the tag team down overnight but they are starting to move upwards again........

Dax has opened with a nice kick up some 20 points in first 5 mins....now all needs to settle as directionally a rising market and USD is not good correlation karma.....

ive thrown a lot of support / resistance lines on there to help and show what happens later

be careful out there......
N

 

[NVP]

its started sell europair buy tag.......and the E/U range got breached down, but its retracing so nothing yet...markets biasing north

I want these ranges broke first below on the 5m 1000/1 corrie

 

[NVP]

this is what I see .........

tight range on middle 5m chart

the top left 2 small charts tell me that the markets are shaping for north action so i am hunting to sell europair and buy Tag ....

lets see....
N

 

[NVP]

just thinking back......the 15m range always seems to put on a pip show now doesnt it !

N

 

[NVP]

if you've got the cahoonas the G/U just broke north......

 

[NVP]

1m charts supporting a G rise now......so looks good for a punt

NOTE - remember it takes a little while for me to get these comments onto the post so sometimes
events are already happening as i'm posting !

 

[NVP]

ooooo yes.cum to momma.....drag your stop/Loss up