Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Hey all

I am well aware that the FXcorrelator in its form here is a MA based indicator....but rest assured I am under no illusions regarding the reality of price.......

whether it sa MACD or EMA or RSI etc etc on a pairchart (or indeed the MA based forex Strengthmeter) we need to be aware that indicators are merely recreating the harsh reality of price

dont kid yourself ..........sure you need to understand what 99% of traders use in their Toolkits .....but I urge you to realise that price is the only reality

heres TRO .......telling it like it is .........I started following this guys in the early 2000's and he is probably the sanest trader ive ever seen.......remember that the truth comes in many forms and it is usually not in a smart suit with fancy video and DVD collection ..the opposite in fact :smart:

 

[NVP]

hard work today on the 1hr FXCorrelator on the 20ma setting

the Green usd just went bear .....make your mind up man !!!

N

 

[NVP]

nope...........green USD holds the line............Euro gets dumped

later
N

 

[NVP]

hey all

heres the 20ma on the 1 hour...........say what you see

Green usd is south of the border

so what do we do ?

we buy it against suitable bullish currencies on lower TF's ...if you had followed this from earlier the G/U would have provided you some nice pips ...and that trade is still going strong !

later dudes
N

 

[NVP]

EU firing up ........take it

N

 

[NVP]

volatility really buzzing now on lower TF's

I like Yen sells as well

N

 

[NVP]

heres that 1hr chart compressed back to last week .............see how deep usd is ?

been a while so make the most of selling it

N

 

[NVP]

in truth at 1.3817 ish .....id be surprised if the E/U gets anymore real movement on this 1hr bar .......a big move so far (15 pips ) on the hourly and the fun may be over for a while at least so tuck in profits or be ready for a retrace ....

this is the tango that currency pairs do ..........slow-slow-quick-quick-slow .......learn that dance and you can jump in and out with profits

later
N

 

[be-positive]

this is the tango that pairs do ..........slow-slow-quick-quick-slow .......learn that and you can jump in and out with a:and thumbsup:from partner

 

[NVP]

personally I cant dance for toffee.............hahahahaha

 

[NVP]

green usd is STILL bearish but came under pressure a while back .....been slim pickings really

heres the green USD and red GBP in bold with the G/U in the candlestick chart area

the candlesticks show flat ....G/U chop...... right ?

but look at the FXcorrelator......it shows the true picture ........the USD and the GBP are dancing together tightly .......converging then Diverging with little given away ......moving tight together so not much is being seen on the pairchart ..........but in truth its not that simple ....right ?

you wont see that action on any pairchart ......meanwhile we watch the dance on all 8 currencies all the time ........24/7

I cant predict the future on the FXcorrelator but I can always show you the past in perfect clarity and in technicolour..........and you need that to make the best trading calls - right ?

c'mon give yourself a break and start using strengthmeters....they dont bite ..... :smart:

later
N

 

[NVP]

in truth at 1.3817 ish .....id be surprised if the E/U gets anymore real movement on this 1hr bar .......a big move so far (15 pips ) on the hourly and the fun may be over for a while at least so tuck in profits or be ready for a retrace ....

this is the tango that currency pairs do ..........slow-slow-quick-quick-slow .......learn that dance and you can jump in and out with profits

later
N

after more dances - 3823 was achieved on that move before it turned south big time........enough to cover losses if you arrived to the dance late .......surprised me in truth !

N

 

[NVP]

just popped back again for a final look........

all quiet now on western front as USD converges back to Zero

all the others are converging as well.........20ma volatility at a low

I'm sure that the asian session will warm things up later

cheers
N

 

[NVP]

just been talking on another thread about this ......the journalist spoke to a few of us here at T2Win and in the end it was a nicely balanced piece in the guardian

N

http://www.theguardian.com/money/2013/jul/20/learn-to-trade-stock-market-websites

 

[NVP]

morning all ......

market still adjusting on that AUD CPI news earlier this morning ............the AUD sunk like a stone and sent most currencies above the zero on the 20ma 1 hr chart

aside from trying to capture the initital move (mainly difficult) this then poses a few problems for the next few hours as we await a return to more stable conditions ..........and to be able to use the standard FXCorrelator again .......

this is easy to rectify if you know what you are doing .and are prepared to exclude the AUD from the equation until the G8 gets back to normal ............but what is normal ?

later
N

 

[NVP]

meanwhile the Euro and the swissie are the buys on the lower TF's

later
N

 

[NVP]

hey all

markets have quietened today ...........we see plenty of convergence on the 1hr chart 20ma (below)..........E/U peaked at 1.3853 and has been best move of the london day so far

USD is running the Zero line now .........its on the fence .....no surprises there !

later
N

 

[NVP]

just noted that weve hit the 750,000 views on this thread

thanks all
N

 

[NVP]

tied up today in the office ...............make some pips for me

N

 

[honeill]

hey all

markets have quietened today ...........we see plenty of convergence on the 1hr chart 20ma (below)..........E/U peaked at 1.3853 and has been best move of the london day so far

USD is running the Zero line now .........its on the fence .....no surprises there !

later
N

EURUSD still quiet after Draghi speech!!!