Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Unbelievable !!!

 

[NVP]

Jeeesss............it takes a lot to shut me up........todays the day

later

 

[NVP]

Heres the weeks action .....not bad at all

 

[NVP]

hey all

hope you had a good day ...........

anyway heres the 1hr charts this morning up close and personal ....

Hindsight is great........ but the devil is certainly in the detail when you are looking for entries :smart:

I always tell people to trade closing bars....why ?

because a bar can oscilate a lot during its life ....

1 minute you are "trade on" then it evaporates....turning on you and making you look a fool

dont worry .........it happens all the time to everyone .....:smart:

so look at the bars in detail and see where the trades were ...or wer'nt !

The GBP was the peach .....it never was a G/U sell (look at the closing bar positions) and the G/U buy signal eventually still was wobbly wasnt it ? ...requiring a decent S/L initially to keep you in the move

but courage my friends as the Dow (top chart) never even bottomed below its 20ma after the bounce and that would have kept me brave on the G/U buy trade

and Look at the E/U.....it killed us with a fakeout sell (that was a signal !)

but then a peach of a buy signal on the last 2 bars.....the move never touched the side ......Nice

have a good weekend all.......its olympic time !
N

 

[NVP]

Mornin all......another week opens

heres the latest.........

Dow Rally to hold ?|FXCORRELATOR

N

 

[NVP]

heres the latest 15m Chart on the 20ma

looks like the Dow is trying to bust the 13,100's.....

Finally we may see a decent fall on the yen and USD ?

although Yen especially has been more comfortable rising today

anyway if we finally get some action ....Euro will be the Buy.....

N

 

[NVP]

funny ole day so far ...........

heres the free indicator (available below in signature area) on its 20ma default settings .....

you can see the Dows flow in top chart and the corresponding action from the Yen and USD inline with my correlation rules

but not much consistent trending to yield serious pips ...yet ?

N

 

[NVP]

pinch punch first day of month.........

1st August 2012|FXCORRELATOR

N

 

[NVP]

that potential turnaround on last post did happen......a few buy pips so far on AUD going with the correlation rules...........

chasing GBP sells was up to you...it wasnt in line with the correlation though !

N

 

[NVP]

heres todays Sermon....i'm getting religous in my old age .....?

N

Seekers of the truth ? |FXCORRELATOR

 

[NVP]

Hey all

I must review at least 2-3 ideas a day on refining my systems

But the anchor is still the Free FXCorrelator indicator on a Dow Chart with a 20ma Corrie underneath that you see in most of my attachments here, and at my T2W thread (370,000 views and rising)

and heres why corrie Fans.....you dont have to keep changing the settings to check out whats going on and track signals.....all you do is become an EXPERT in the settings you chose and watch the Market in relation to them .....

in other words dont keep changing / updating your system to chase the market (a little like backfitting?)...let the market come to your system ...and recognise and trade patterns and anomolies !

heres belows example...a 1hr yesterday

I noticed that on the standard 20ma settings my USD was running above the 20ma (zero) line off a rising Dow .....setting me up for some sells on the falling GBP (sub zero red) and perhaps the Euro when it came south eventually below the zero

I was hoping that the dow would fall back below its 20ma and this would shoe those trades in.....see the price lines on those 2 trades where this was happening ?

well from then on it all fell into place ....

Dow fell below its 20ma
Yen got up above its zero line
GBP and Euro got south (and Grey CHF)

and all was well as we made pips !

my point is again ......if you practice long enough on 1 setting you like (faster ma or even slower ma from the 20 default)....you will see the patterns again and again .....

and then its up to you when you press the trigger as in this case there was a lot of evidence to suggest going possibly even earlier than when the crosses happened ......why ?

BECAUSE THE USD WAS SCREAMING IT WAS GOING NORTH .....even before the Yen and Dow were in confirmation

Here endeth todays lesson !
NVP

 

[NVP]

heres the 15m chart RIGHT NOW

tell me what you see and what you would do......

then do it

good pipping
NVP

 

[NVP]

This is the first 15m Bar that all the rules are in alignment

E/U got to 1.2236 low so far ....

you need to be screaming at that Dow to keep falling......otherwise you've already missed the boat on this trip south for the Euro

or have you ?

N

 

[NVP]

and I see the AUD is now starting to fall aggressively

why the hell is the AUD overtaking the Euro ?

I dont know .....its called trading and welcome to my world .....

NVP

 

[NVP]

errrrrr......


So do we sell the A/U as well ?
Is that Dow slowing ?
should we have waited ?
should we have traded earlier than the signal ?

I dont know .....maybe ....maybe not

Welcome to my world ....and this is all on just the simple 20ma settings so you can see why I generally ask newbie correlators to keep it simple and focus on the 20ma

thats a world of learning and practice before you even think about more advanced sophistication !

later all gotta scoot
NVP

 

[NVP]

as I leave I see a Dow bounce that is retracing the signal .........

and if you want to know I didnt trade - as I thought it was to late on the Dow and the Dow was already to far gone to stimulate a decent early move

this time .........however I think theres more to come but perhaps a retrace first ....but I wil need more patterns and evidence to tempt me ......

practice practice practice .......
NVP

 

[NVP]

back again............still on the 15m TF this morning

heres the same charts a few bars on ....this is GMT -1

point 1 .....was the shimmy back up by the Dow tempting me into considering yen / usd sells .....and they were both south of the zero border (see chart)......and the euro was now nicely north ...perhaps a E/U buy signal ?

then the Dow retraces south again below its 20ma .........

BUT LOOK ..the Yen and usd DO NOT move up much........:!::!::!:

i'm on high alert now .....I have non correlation .....I just need to see what way it now moves to act...

point 2 .....The Dow gets north....screaming at me to sell Yen and USD (who were already nicely south) ........

and the Euro and AUD were already nicely north to buy.......

see ?

Patterns Patterns Patterns ............on the simple 20ma :smart:

There are many many ways to play nice tunes off an old Guitar !

NVP

 

[NVP]

someone asked me a couple of good questions yesterday so i've linked it here

Seekers of the truth ? |FXCORRELATOR

Exit strategies ?

for me the most important element of any trade is Exit......why ?....because a lot of great traders always say its even more important than entry ......as any idiot can find a good entry point for a trade with a little coaching .....

well all I can do is suggest you type "exit strategy Trading" into the usual google hunts on trading and start reading .........you will soon get a feel for what is interesting and what may suit your style ...... also heres a little thread I launched a while back ...................nothing fancy but a lot of good points you will see again and again regarding Exits

http://www.trade2win.com/boards/for...117416-best-exit-strategies-forex-market.html

remember as the song goes ........

NVP

 

[NVP]

heres the week so far.......

ive placed some signals where the correlation was good

NFP's today

looking at the 1 hour chart we are right on the Neutral

NVP

 

[NVP]

ok

gotta scoot now ..........i'm chasing some very fast scalps on E/U and A/U buys off the moderately rising Dow (5 mins)

U/J buy has just yielded a handful as well.........

Later
N