Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Doh ............the GBP sells are hidden

remember you can do this for yourself by loading the FXcorrelator (available FREE in signature area below) and setting it to the 5min TF (hiding the Dow if needed ....)

later :smart:
N

 

[NVP]

jees its been a while since i played with the 5 mins ..........forgotten how much fun it is !!!!

later
N

 

[NVP]

gotta scoot .

later

n

 

[stephensteve]

Hi and thanks for all the info..I have spent a few days researching your posts and trying to find your web site etc,

I have jumped around some threads which are pretty old and so I would be most grateful for any info with regard to the Dow and US and Yen trades

I have a platform that doesn't include the DOW...!!

It does have US30 and SPX500, are these similar in this trading instance ?? can I use them instead of DOW

I have the US dollar on it's own, should I trade it and not worry about the pairs, again, thanks v v much

Cheers, Steve

 

[stephensteve]

Hi again, I have had a look back at a few trades in feb, hope you don't mind me back testing a bit...all on 1 hour chart earlier this month...

12/feb at 22:00 SPX500 crossed 20 ma went up--------Dollar went down,,,great:clap:

5/feb at 19:00 on the SPX500,price up crossed 20 M.A-------Dollar up too . not good

I was pleased with the first test on the 12th, but, obviously, not with the next on the 5 th

Would you mind checking with your chart and seeing if I am on the right lines..??

I checked a few more, am I missing something, Cheers, Steve

 

[Jedster2001]

Hi and thanks for all the info..I have spent a few days researching your posts and trying to find your web site etc,

I have jumped around some threads which are pretty old and so I would be most grateful for any info with regard to the Dow and US and Yen trades

I have a platform that doesn't include the DOW...!!

It does have US30 and SPX500, are these similar in this trading instance ?? can I use them instead of DOW

I have the US dollar on it's own, should I trade it and not worry about the pairs, again, thanks v v much

Cheers, Steve

US30 IS the Dow. Many brokers call it the US30 or somthing similar as it has 30 constituents.

 

[stephensteve]

US30 IS the Dow. Many brokers call it the US30 or somthing similar as it has 30 constituents.

Thanks very much, I will pursue the trading methods with US30,

I am still scratching my head about the trades, though,

Cheers, Steve

 

[NVP]

Hi and thanks for all the info..I have spent a few days researching your posts and trying to find your web site etc,

I have jumped around some threads which are pretty old and so I would be most grateful for any info with regard to the Dow and US and Yen trades

I have a platform that doesn't include the DOW...!!

It does have US30 and SPX500, are these similar in this trading instance ?? can I use them instead of DOW

I have the US dollar on it's own, should I trade it and not worry about the pairs, again, thanks v v much

Cheers, Steve

Hi Steve .......and welcome !

firstly as we approach 500,000 views at this thread (yes 500,000 - check the viewing figures of other Threads and you will see just how popular and growing our little T2W thread here is )

I am a little embarrased to confess the FXcorrelator.com Website links are now down due to ongoing disputes with the web providers....I dont think we are ever going to resolve things with these pirates - so I will be launching something else soon so at least people can see who I am and contact me again if needed...(soon soon )..its a shame as my partner and I spent literally man months of effort on those 2 sites (VIP crew as well) and were like our babies - but never mind .....we learnt a lot from the process and a lot more on who not to work with ........ :smart:

ask me anything here or at [email protected] and i,m always around to help.....

also I have a few videos online at youtube (FXCorrelator channel).they are a little old now but the principles remain ...and I will be loading more in the future

now lets get to business with your questions.......

 

[Jedster2001]

Hi again, I have had a look back at a few trades in feb, hope you don't mind me back testing a bit...all on 1 hour chart earlier this month...

12/feb at 22:00 SPX500 crossed 20 ma went up--------Dollar went down,,,great:clap:

5/feb at 19:00 on the SPX500,price up crossed 20 M.A-------Dollar up too . not good

I was pleased with the first test on the 12th, but, obviously, not with the next on the 5 th

Would you mind checking with your chart and seeing if I am on the right lines..??

I checked a few more, am I missing something, Cheers, Steve

What you have to remember is that no system, strategy or methodology is going to be correct 100% of the time. You are not always going to have an opposite correlation between the dollar and the dow (it is not like interest rates and bonds which will always move in a particular way).

The point is that when you do see certain movements, you will have more confidence that the trade you are about to take is going to have a higher success rate.

 

[NVP]

Hi and thanks for all the info..I have spent a few days researching your posts and trying to find your web site etc,

I have jumped around some threads which are pretty old and so I would be most grateful for any info with regard to the Dow and US and Yen trades

I have a platform that doesn't include the DOW...!!

It does have US30 and SPX500, are these similar in this trading instance ?? can I use them instead of DOW

I have the US dollar on it's own, should I trade it and not worry about the pairs, again, thanks v v much

Cheers, Steve

as already commented ...........ANY US Equities based indices will work ............S&P , DOW ...even the Nasdaq to a certain degree.........they all generally give the similar picture

N

 

[NVP]

What you have to remember is that no system, strategy or methodology is going to be correct 100% of the time. You are not always going to have an opposite correlation between the dollar and the dow (it is not like interest rates and bonds which will always move in a particular way).

The point is that when you do see certain movements, you will have more confidence that the trade you are about to take is going to have a higher success rate.

Jedster is 100000% right............I have introduced here some very very simple principles around strengthmeters and intermarket correlation......there are some generalisations we apply but naturally these do not work 100% of the time ......

I encourage people to experiment and observe the markets using some of these ideas and tools as a starting point...as you develop your own ideas I GUARANTEE you will be watching the market in a more complete and Realistic way than 95%+ of other traders ......

you see thats the holy grail - to "SEE" the market and realise what it is doing ......(like Neo in the Matrix)....profitablity will eventually follow as you then learn your own path to then profitably harvesting its behaviour.....

I was lucky enough to finally "discover" this approach back in the early 2000's and have more recently shared these ideas here since 2009......and we are here to help as needed :smart:

N

 

[NVP]

i'm tied up today and cannot get to my screens .........feel free to post and share here for everyone and we can all comment when able

thanks
N

 

[NVP]

Hi again, I have had a look back at a few trades in feb, hope you don't mind me back testing a bit...all on 1 hour chart earlier this month...

12/feb at 22:00 SPX500 crossed 20 ma went up--------Dollar went down,,,great:clap:

5/feb at 19:00 on the SPX500,price up crossed 20 M.A-------Dollar up too . not good

I was pleased with the first test on the 12th, but, obviously, not with the next on the 5 th

Would you mind checking with your chart and seeing if I am on the right lines..??

I checked a few more, am I missing something, Cheers, Steve

the more you peel the layers the more you will understand steve ........you cant please all the people all of the time

N

 

[Jedster2001]

Jedster is 100000% right............

Crikey...

I knew if I persisted, I would be right one day about something...

 

[stephensteve]

Thanks very much for your comments, it is appreciated, nice work.

I was wondering if i was on the right lines with the basic rules....have realised that I haven't got a zero line yet

I am having nightmares trying to load the correlator info to metatrader4..!!

i wonder if there is an indicator that would reflect the zero line for the currencies

I am chomping at the bit to get to grips with this corrie business, thanks in advance

cheers, Steve

 

[NVP]

Thanks very much for your comments, it is appreciated, nice work.

I was wondering if i was on the right lines with the basic rules....have realised that I haven't got a zero line yet

I am having nightmares trying to load the correlator info to metatrader4..!!

i wonder if there is an indicator that would reflect the zero line for the currencies

I am chomping at the bit to get to grips with this corrie business, thanks in advance

cheers, Steve

Hi Steve

load up the FXcorrelator on a dow or US30 (or any pairchart) and you should see the bottom indicator on the right chart on this post below

the FXcorrelator should automatically insert a Zero line ?.....

N

http://www.trade2win.com/boards/for...-basic-ideas-strategies-1370.html#post2076962

 

[NVP]

heres my Goldmeter - available here for free in the Signature area

read the rules..to be REALLY safe I wait for the gold line to get fully above or fully below all the others to trade ...and I need ideally the Green USD line on other side of the Zero to drive the move

clearly you could just wait for them to be just the opposite sides of the Zero and trade that (a little like our normal FXcorrelator rules)...you will get more profitability on the good moves but certainly more Whipsaws as well as you see from these charts

whatever .....Gold is being bashed and I am sick of all the gold bugs crying to me and making excuses about why we should hold on and be patient ....blah blah

they have been caught red handed with their "Bull" gold confidence and are found out .......

TRADE WHAT YOU SEE ....dont just buy because some "expert" tells you gold is a guaranteed buy because everyone is selling their currencies..remember if everyone is dumping their currency at the same time ...Nothing happens ...its a zero sum game

Now I have just noticed that Moneyweek has started hesitating on their guaranteed buy gold stance ....so I cant wait to comment and remind them to trade what they see ....and stop being so naive in some of the Currency and Commodity articles they write ....jesus they need that area strengthened in their Journalist team

N

 

[Jedster2001]

Hi,

I have a question about the zero line. I appreciate that the indicator is showing relative strengths and weaknesses of the currencies, and a cross between two currencies is perhaps a potential entry point.

However where does the zero line fit in. Does a currency crossing above or below the zero line mean anything? What about if a cross between 2 currencies takes place above (or below) the zero line, does that mean anything? Or, is it simply a point of reference, and allows one to measure the relative strengths and weaknesses, and a cross of that level itself, doesn't actually mean anything.

I ask because I often see you saying that you'll want both USD and JPY to be above the line, and then you'll go long against a currency below the line. So, just trying to work out what that level is actually telling us...

Thanks

J

 

[stephensteve]

Hi once again, hope you are all well, NVP deserves a lot of thanks for the info that he has helped me with...!!! :clap::clap::clap:

After a gruelling couple of days, I have worked out the Metatrader and installed the Correlator,,,,,,,,many,many thanks to N.

I have read through the many,many posts on the forum and have a rough idea of the point of it (I think) I am going to have a lie down after all this exertion, will be back soon to pick your knowledgable and smart brains, hope you don't mind...my thanks and gratitude in advance:smart:

Cheers, Steve

 

[NVP]

mornin all ........

oh dear oh dear .........for us Brits the national currency is now going south big time ......cancel the holidays and get ready to sit on a beach in Devon or Wales .....

it will help boost exports and perhaps get us moving a little more but from the chart below GBP is rapidly heading for 2 weeks as the weakest Currency in the G8

heres the latest standard chart below showing GBP in trouble and also my x-men chart (available somewhere Free in the thread) on a 1ma setting on the Week.........dont underestimate how stupid and simple this looks ......I use my xmen in some of my scalping systems as i like the look.....

N