Best Thread Correlation Trading - Basic Ideas and Strategies

[fahdjeddah]

Dear Sir,
I am really thankful for these thread and your commitment to help and support others. God bless you and you family. For 3 years i study and practice forex but never find any thread or any educator like yours provide such help for anyone . Thank you again . Fahd from Egypt

 

[malaguti]

Yes God bless you N.
This is not my first post on this forum but if it was I too would thank all that is holy for FX correlator indicators.
No really, I wouldn't say hi, I wouldn't ask any questions I would go straight to thanking god for everything that you're doing for the FX community.
I mean really😇

 

[NVP]

Dear Sir,
I am really thankful for these thread and your commitment to help and support others. God bless you and you family. For 3 years i study and practice forex but never find any thread or any educator like yours provide such help for anyone . Thank you again . Fahd from Egypt

you are welcome F..............they are just indicators my friend .....it is up to all of us as traders to use them wisely :smart:

N

 

[NVP]

Yes God bless you N.
This is not my first post on this forum but if it was I too would thank all that is holy for FX correlator indicators.
No really, I wouldn't say hi, I wouldn't ask any questions I would go straight to thanking god for everything that you're doing for the FX community.
I mean really😇

now now M...........play nicely

 

[NVP]

morning all ........

so now ive shared a few more indicators in the signature area that I hope will be useful lets take a look at the 3 most used by me re today ..........

http://www.trade2win.com/boards/for...-basic-ideas-strategies-1649.html#post2559846

heres my anchor the green usd then overlaid with the Blue Euro and red GBP

always load up the USD first as then any lines or other things you load onto the chart will be related to the usd ...............all the others remember are overlaid and simple readjusting to the usd's tune (try it)

the usd is the daddy ..............always and always ............a ridiculous amount of the planets currency is transacted in usd

 

[NVP]

ok lets look at the 15m today and load #1 the usd index

look at the clues !

1) the USD rises, flicks it tail and smashed through a level that is likely to become a decent support level later for rebuys

2) a new high......remember it

3) jees that area looks familiar !!!!!...........lets try to buy usd here ? ....2 chances in fact !!!

4) jees been here before ...............look to be aggressive on usd sells

5) support level again ..........look to buy until further notice

the indexes behave just like the standard pairs ...............s/R , price action , ma's , LR , fibs etc etc ...........but the best thing is that by just watching the usd you will have clues to trading the 7 usd pairs ................if you have an idea iof what the usd will do next.......then all you have to do is look for a currency that compliments that move (ie moves in opposite direction to usd bias)

N

ok ?
N

 

[NVP]

now heres the euro overlaid............

I wont lie to you ................like any approach to trading it takes a long time to learn your skill and be profitable

we saw on the last post where the usd gave clues to its next move........

heres the euro index overlaid to see if we can get more clues to where to trade the EU

in trading the indexes it is rare for 2 currencies in a pairing to be perfect re signals .........they don't move perfectly in inverse correlation...........sorry its rare

usually a move involves 1 of the 2 currencies getting serious in a trend or a breach or a bounce/retrace off a s/R ..............the other currency becomes the passenger and all you can do is try to get is at least flat to the lead currencies move ..........if you can get it mvong in opposite direction then that's a bonus


N

 

[NVP]

This is a big big thread and I apologise for that .............

many people have criticised how simple I have kept it over the years with my FXCorrelator strengthmeter and the MA action and my rules will not enable people to make money trading ...

want to know why ?

because its simply not worth me progressing to advanced levels and trying to teach the nuances of index trading .................it wont work on an open forum and certainly not worth my time

1) I need people who have been around the block a bit first and understand forex dynamics

2) I need people with open minds and willing to look at something that frankly is not seen anywhere else ..........and to ignore the people saying strengthmeters cannot be used to make traders consistent money

3) I need people willing to spend weeks months years now studying the art of trading strengthmeter based systems

so I cant be fussed as I havnt got the time or inclination at the moment .....I ran a pilot course a few years back and in truth it was a mixed bag ..........of the 40-50 involved perhaps a handful "got it" in terms of even the basics and may have been worth progressing to the next level for me .........the rest were keen intelligent people ...but all novices at trading so too much work needed from me ......

N

if you see the similarities here to what Forexperian says in teaching/studying what he does then you can probably understand more why I have been supportive of his mission since the start !!

 

[NVP]

so what do we do ?

heres that recent action

at 5.45 gmt .....usd was a definite punt to sell ...........heres the euro and the gbp shown

it takes a long long time to learn how to assess the situation and what pairs to trade .....

but the clues are always there ............and if you get the usd call right I guarantee you will probably be able to make a few pips on ANY usd pair you trade before some of them deteriorate (inevitably)

even here the GU gave us 20 pips of bull action before that falling gbp sabotaged the usd falls

meanwhile the EU was a peach with the Euro bouncing on cue and running for 50 pips so far !!!

N

 

[NickBk]

NVP,
Enjoy your comments.
I do feel you are too hard on yourself.
Keep clicking buttons and making money.
GL

 

[NVP]

later all .......have a good day

N

 

[NickBk]

I have had 12 trades on Dax this morning and I would not be able to articulate in a forum why I did 10 of them, they worked for me though.
gl

 

[NVP]

NVP,
Enjoy your comments.
I do feel you are too hard on yourself.
Keep clicking buttons and making money.
GL

most traders are masochists.............trust me

 

[NVP]

I have had 12 trades on Dax this morning and I would not be able to articulate in a forum why I did 10 of them, they worked for me though.
gl

yep agreed ....................this is why no 2 traders can ever trade the same

the best way to see this is when you get uber programmers trying to trade successful traders systems ........(see TRO's efforts on forexperians thread)

its impossible to get the last 5-10% of the system into the mix

why ?

because that part the Traders inbuilt instrinct/talent/ Xfactor ..........you cant put it in a box !!!

and thank god for that !!!!!...........we are all individuals

N

 

[fahdjeddah]

Hi NVP,
Do you recommend only and only trading USD & JPY pairs (USDXXX,XXXUSD,XXXJPY)?
Example Should avoid trading EURGBP,AUDNZD,EURBZD,..etc
Thanks

 

[fxstrategist]

The USD/JPY is among the majors, but the EURUSD is the most liquid. Each currency pair has its own personality and that also goes with each trader.

 

[NVP]

The USD/JPY is among the majors, but the EURUSD is the most liquid. Each currency pair has its own personality and that also goes with each trader.

hey there Fx

I agree.........although each pair is a schizophrenic dual personality remember

would you like to expand on the personalities of some of those pairs ?

thanks
N

 

[NVP]

Hi NVP,
Do you recommend only and only trading USD & JPY pairs (USDXXX,XXXUSD,XXXJPY)?
Example Should avoid trading EURGBP,AUDNZD,EURBZD,..etc
Thanks

Hi F

It is completely horses for courses my friend

I follow the usd pairs as they have the lowest spreads for scalping

also the usd as the highest volume traded currency in the galaxy gives me the liquidity I trust re moves ......usually

Yen is nice ...................especially the E/J I like .........but remember the yen can move like lightening so never give it room to bite you

the g8 currencies tend to be tribal ..........I've discussed this many times in this thread over the years .........

aussies move together .......and generally the Europeans ........with the usd and Yen traditionally sharing the same correlation ...........Cad is a wildcard and its own boss

in the London session of a morning if you find the EU GU pairs pretty flat I guarantee the aussie usd pairs are worth trading

N

 

[NVP]

the 5min TF is as good as any to watch our indexes at play ..........

look at the usd ............its been superb more recently as a bull play

charts are GMT

the euro actually wasn't a sell really during that time but EU still fell ..............the GU (second chart) was the play .....................

N

 

[NVP]

right now ???

know the usd is tanking in F's famous time windows but I cant help thinking shes gonna bounce north soon

Hmmmm
N