Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Mornin all .......before I respond to Steve heres the week so far and some ideas for today

the week has been a game of 2 halves (as they say in soccer)

Dow got stronger into tuesday .....but it couldnt suppress the Yen and USD south (or together) so trades were thinnish.......some euro buys by very late Tuesday evening

Wednesday DOW opened thru London am session flat.....but the yen and USD were already coming north and signalling intent .....GBP dumped off of bad economics and the Dow flow went south big making easy signals for us to sell the Euro & GBP (again) and even AUD for the next few significant hours and well well into thursday western sessions....


its all change now with Dow bouncing and the YEN and USD have gone South so we are looking at some buys on the aUD , GBP and soon the Euro today so far ....

Friday gameplan

hmmm...tough one ......

my first check is to see where traders will be locking in stops to ensure they preserve weekly profits......especially on the big Currency movers which this week are Sterling (short) and Yen (long)

Sterling has roughly already retraced over 50% on this weeks sell action and is hanging around the lows of last weeks low (resistance point ?) ...... Yen is into its third consecutive week of winners and is currently showing roughly at 25% retrace on the weeks high....see the 500ma chart below where I look for this level of detail

so where is the Dow going today ?....... its bounced back 50% on the highs of the week already so not as much to play with on predictions there....gut feel tells me more downside now but thats not gonna pay the rent

Based on above I would actually just go with the flow on whatever TF you are using.....if its the 15m trade 20ma with normal signals ....and 5 min is scalping anyway so who cares about the 4hour TF ....

later all ...I'll put a screenleap up later if I can scalping the 5mins
N

 

[NVP]

correlation trading made easy

Hi J

please clarify here as to the point of the link ......I welcome interaction between the threads at T2W but the viewers here need to understand why they are looking

thanks
N

 

[NVP]

View attachment 156712

AFTER A FEW ATTEMPTS, I HAVE LOADED A SCREEN...WOW..!!!

THIS WAS DONE AT 12:45 am UK TIME,,,,,Middayish here in Oz.

I wonder what your views are on this screen, I have made notes for myself and would love an expert opinion,

Thanks, Steve

the Dow was above its 20ma and as soon as USD and Yen were both below Zero you s/be hunting the buy currencies and trading dude !.....

generally the AUD and NZD will be more active as Trades through the Asian session than the EUR and the GBP options.......the USD and Yen are pretty much alway active :smart:

 

[NVP]

View attachment 156716

here is same an hour or 2 later..

Am i right to call the Dollar sell and Aus Dollar Buy...??

Cheers, Steve

YES..and if its the Asian timezone it should be volatile enough to deliver pips

and I havnt checked to see if that happened .......if it did well done ....if it didnt then bad luck and welcome to trading.........losing trades is part of the package ......( a little like food wastage in the resterant business...you have to have it and live with it.....but ensure you minimize it)

N:smart:

 

[stephensteve]

Good Morning,, thanks very much for your reply, great advice and a very welcome review of my screen, this kind of help is very much appreciated,

I feel that I have learnt heaps in the past couple of days,,great stuff,thanks...!!

Cheers, Steve

 

[NVP]

View attachment 156716

here is same an hour or 2 later..

Am i right to call the Dollar sell and Aus Dollar Buy...??

Cheers, Steve

Steve I just checked the 15m's last night on your signal above

you just kicked your first FXcorrealtor butt !

good trade 10/10 :smart:
N

I love the asian session !!!

 

[stephensteve]

How about a 64 million pip question..???????????????

How far across the zero does the Yen and Dollar need to go to make it tradeable..??

Cheers, Steve

 

[NVP]

going live on Screenleap later in the afternoon say 3pm GMT ?......later

 

[NVP]

How about a 64 million pip question..???????????????

How far across the zero does the Yen and Dollar need to go to make it tradeable..??

Cheers, Steve

start with simple closing bars above / below Zero (literally just millimeters)

then start testing the further away from the Zero yuo want to leave it

the longer you wait the bigger the trend is already "in" so you are arriving later and later to the party ......but you avoid more whips.....

read up about MA's and also trend trading .....and also read everything about the MACD trading systems out there ....that all helps and this information is VERY closely related to what I do here ....except I use a strengthmeter instead of main charts

later ...gotta scoot :smart:
N

 

[stephensteve]

I seem to be posting at the same time as you...NVP

Thanks for your great advice, I will try some scalps now that London is open,

Thanks Sir,, Steve

 

[NVP]

in truth I dont even use crossovers of the Zero for a lot of my advanced systems .......I use other things**** ....but the free and basic stuff I teach here is very very effective and essential to learn before you progress...

**which actually fired up around 2am when Steve was seeing signals as well....so sometimes they do correlate with the 20ma system !

look at Steve ....2 minutes in and he is trading some nice signals on the basic free system !

later all and well done Steve....
N

 

[NVP]

hey all

heres the 15m's

technically I was ready to attack buys on Yen and USD as they came north ....i'm a little nervous though

a) because I need something to sell !!
b) Dow is going north

wait wait wait .......its what you dont trade that makes you the money

N

 

[NVP]

heres the 5mins .......

even AUD picked up a scalp earlier (not shown)....GBP scalp sells setting up right now ?

N

 

[jungles]

i'm trying to steal your followers......... (wink)

if you click my link, the correlation is elaborated there

Hi J

please clarify here as to the point of the link ......I welcome interaction between the threads at T2W but the viewers here need to understand why they are looking

thanks
N

 

[NVP]

fast and furious on the 5mins ..........in truth this scalping game is hard to make a living out of ...but its great for sharpening up the brain and passing the odd hour or 2 away

looks like we are due a little respite on chasign the yen and USD buys ...they are going to go sub zero....watch !

N

 

[NVP]

in........


1.5271

hunting 5 -8 pips dudes

 

[NVP]

5265....hold the line

 

[NVP]

5264.......hold hold .....

 

[NVP]

5266.....I need the Dow to keep going north ....

 

[NVP]

assess and keep cool all the time ...watch the other currencies ...watch everything for clues

N