Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

hey all

jees i finally feel a little more human today .......

ok heres results so far fior Jan...euro is the alpha male but AUD is also close ......Yen is being hammered ......

I see a lot of people are tipping the E/J buy into all of Jan .......personally I say trade what you see.....but clearly the yen is the fall guy at present for all pair trading

N

 

[NVP]

as per previous thread its been a good January for buying euro and Selling the Yen.........isnt hindsight a great trading system ?

as you know I do tend to look for a pattern here of Yen and USD trevelling together (ie positive correlation)

so here are the main phases so far for January when the ywere both aligned above / below the zero line on a default 20ma setting

so nice moves there
N

 

[NVP]

mornin all..........

ok no games this week i'm just showing a basic 20ma setting on the 15m TF ......and calling trades from that

N

 

[NVP]

so tell me what you see from the opening chart this week so far

whats the Dow doing ?...........whats pressure points are approaching ?
is it gonna bounce north ?
is it gonna fold south ?

What are the usd and Yen doing ?
are they the same side of the Zero ?
are they correlating (inversely) to the Dow ?

what are the Euro & GBP doing ?

what signals have worked so far this morning ? (clue Selling Europeans in to the yen and USD)

The clock is ticking .........tick tock tick tock
N

 

[NVP]

ok suspence over

the best option is the Dow folds south .....and USD and Yen are already STRONG .....

this would play into an extended sell on euro or GBP as both are SOUTH

the alternative is an all change as Dow bounces North......but then you need a lot of things to reassemble as the Yen and USD are currently North as well - so they need to fall south and the euro and GBP (target Currencies) to buy are still south ......that takes time to regroup north ! (unless you are taking a huge bet on calling the exact turning point here....)

Lets see......
N

 

[NVP]

having said that GBP is one consistently weak puppy since early london opening

 

[NVP]

GBP is weak .........regardless of the dow or anything else going on !

 

[NVP]

sorry guys deleted that last message as I'm still groggy regardign seeing the signals !!

dow going south so look to extend some of those sells on europeans ...........GBP looks over extended though I must say

N

 

[NVP]

if the USD and Yen dont move up more soon I would say this is a false signal on the Dow

N

 

[NVP]

no other sell in the house except GBP at the moment

 

[NVP]

i'd probably look to the AUD as a sell as well if this continues

 

[NVP]

jees that GBP is a dog today ..........

 

[NVP]

15m TF

Carnage on GBP ..........Carnage !

 

[NVP]

11,000 posts from me now at T2W............

if anyone says anything i will shoot them !!

N

 

[NVP]

15m TF

Carnage on GBP ..........Carnage !

on a 20ma setting ...........its rare to get a Currency flying solo on one side of the Zero .......but GBP is one of the 2 I will always bet on to do it ....

Yen is normally the main other culprit when this happens .........you have to be a seriously volatile currency to make that happen

N

 

[NVP]

Still rollin along here ......AUD looks the sell now as the USD and Yen stay bullish

 

[NVP]

Yen is sure bullish...........and the BOJ is not open to shut this door

 

[NVP]

sorry all

tied up for rest of the day ............

until tomorrow .........hopefully you mopped up plenty of pips on that GBP run south

N

 

[Itshamish]

Nothing says the same for ever and notwithstanding "plus ca change, le plus c'est le meme chose"
Is it possible that the 'proper order' of the FXCorrelator might change? The DJI goes weaker and south of Zero ("virtual currency balance" line) - and so does USD and JPY... I haven't a clue - any thoughts, please?

 

[NVP]

mornin all....

ok 4h TF on a 20ma 3delta setting ..it smooths things a little and is my longer term bias signal

is Yen finally getting to visit the north side of the Zero soon ?

2nd time in January ONLY ....

hmmmm
N