Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Hi all

popped in for 2 seconds.....I see that the US30 is still dribbling north since 8ish this morning again - sending the USD and CHF south on some nice triple arrow sell signals

Yen is on steriods still at the moment and even the 0% int rates and BoJ offering to buy anything that breathes cannot stop the markets appetite for it....god help them if equities start to fall.....

that left opportunities for the other G5 currencies to pop up for triple arrow buys , but only steady eddie AUD was available mainly and then more (very) recently a roller coaster GBP signal - although the pips were mainly made before the H4 turned up (its still stammering down below)

more tonight if I get time
N

 

[NVP]

look at gbp fly..............that bottom row of arrows tells the story

total domination of the 15m 14/3 area above the zero

thats class.........

N

right gone again now.......later

 

[NVP]

Hi all

theres only a few people I really respect in this business (who publish that is) and Lance is now one of them

http://www.yourtradingcoach.com/Website/YTC-PAT-TOC.html

hes finally (after much prodding from his students like me) produced a detailed and in depth guide to his approach to trading

If you want to trade price action I would recommend it as part of your library....14 chapters of information so keep reading it until you understand and can act on it :smart:

theres an offer on if you contact him to perhaps get it for under $100 which is a steal compared to most garbage out there....no hype

(hey my stuff's free here so no-one can say its not value for money )
N

 

[NVP]

Hi all

heres the overnighters................beuuuuuuutiful correlation for the TAGCHF
on the 15m's but if you are an arrow follower this was a frustrating night

Yen was a nice triple arrow Buy (TAB) from early london trading hours but only the GBP was offering a Triple arrow Sell (TAS)..about 30 pips on that pair since liftoff (see second attachment)....

NZD now a triple sell and AUD just finally joining the party.........Eur is triple north

not going to be boring then today with the NFP's looming :smart:
N

 

[NVP]

ok back to the grindstone ......will pop in later on hopefully

N

 

[NVP]

Hi all

damn........ive lost my remote connection to my laptop at home

oh well - will drop some comments in here tomorrow assuming all ok with it

have a good evening
N

 

[NVP]

Hi Guys.

Latest incarnation of the FX Correlator attached, V5b.

Changes:

The 3 arrow rows can now have their own PerAvr & Delta values independent of the other rows and main chart.

Defaults set to M240 (20/1); M60 (20/1); M15 (14/3). The main chart: (20/1).

By using the properties on the indicator inputs tab the highlighted lines on the main chart will now stay highlighted after changing time frames.​

Regards
DJ

hey Djenky

many thanks again.....works a treat

what does the timer do ?

N

 

[newt24]

Hi NVP

Is your Correlation indicator similar to this?

http://www.forexmarkethours.com/strength_index/07/

Looks intresting

 

[NVP]

Hi all !

theres a lot of hype about gold at the moment - but to me (a diehard relative price strength addict) Gold needs to prove to me first that its underlying value is delivering (up currently) before I consider pressing trade buttons.........

Gold (and all commodities) are priced as a Global standard in US$.......dont laugh at me re stating the bleeding obvious as the obviuos is someimes overlooked in Trading..........and everything else in life !

so my immediate question is always - yes I can see its US$ 1,300 an ounce ..........but what is its price relative to the G8 basket of currencies ?.......and is it rising or falling in real terms ? (always a guaranteed showstopper at a dinner party :whistling)

heres a little chart answering that question below

its on a H4 500/1 Corrie so you can see actual price fluctuations in the last 3-4 months

the bold line in Violet is Gold repriced to the G8 (ie in real terms) and the Gold bold line is Gold in traditional US$'s which is what all the fuss is about recently

all other lines are from the usual correlator to show key currency relative prices to Gold

so what do we see ?

in relative terms (Violet Bold line) sure its doing fine and is up there rising strongly since late july.....but no different realy to buying NZD......and look at the Euro in the last month or so !

(you would have actually lost money buying Gold in Euros in the last month or so !)

its the US$ that is helping making it soooooo attractive....the cheaper US$ fuelling growth on that Bold orange line (and other $ Commodites I suspect as well).... so great while it lasts but aways ensure you are trading the commodity for the right reasons and that your underlying direction is sound first before factoring in the currency variable !

look at late April/early may as an example of this......the relative price adjusted (Violet) line ranged before moving upwards agressively.......but Gold/$ (bold orange) fell as the us Dollar was rising.......ouch !

see then how it rocketed into early June as a falling Dollar supported a rising (relative priced) Gold !!!

always try to see things how they really are before taking your shot......:smart:

later all...........
N

 

[NVP]

Hi NVP

Is your Correlation indicator similar to this?

http://www.forexmarkethours.com/strength_index/07/

Looks intresting

hi Newt24

sure thats a strengthmeter.............a little restrictive though as its working to a fixed start date isnt it

It ideally needs to be able to drag the timelines backwards and forwards like the FXcorrelator ! :smart:

N

 

[NVP]

heres last weeks action

N

 

[NVP]

Hi all

mega busy this morning....will try to plug in later

N

 

[NVP]

Hi all !

theres a lot of hype about gold at the moment - but to me (a diehard relative price strength addict) Gold needs to prove to me first that its underlying value is delivering (up currently) before I consider pressing trade buttons.........

Gold (and all commodities) are priced as a Global standard in US$.......dont laugh at me re stating the bleeding obvious as the obviuos is someimes overlooked in Trading..........and everything else in life !

so my immediate question is always - yes I can see its US$ 1,300 an ounce ..........but what is its price relative to the G8 basket of currencies ?.......and is it rising or falling in real terms ? (always a guaranteed showstopper at a dinner party :whistling)

heres a little chart answering that question below

its on a H4 500/1 Corrie so you can see actual price fluctuations in the last 3-4 months

the bold line in Violet is Gold repriced to the G8 (ie in real terms) and the Gold bold line is Gold in traditional US$'s which is what all the fuss is about recently

all other lines are from the usual correlator to show key currency relative prices to Gold

so what do we see ?

in relative terms (Violet Bold line) sure its doing fine and is up there rising strongly since late july.....but no different realy to buying NZD......and look at the Euro in the last month or so !

(you would have actually lost money buying Gold in Euros in the last month or so !)

its the US$ that is helping making it soooooo attractive....the cheaper US$ fuelling growth on that Bold orange line (and other $ Commodites I suspect as well).... so great while it lasts but aways ensure you are trading the commodity for the right reasons and that your underlying direction is sound first before factoring in the currency variable !

look at late April/early may as an example of this......the relative price adjusted (Violet) line ranged before moving upwards agressively.......but Gold/$ (bold orange) fell as the us Dollar was rising.......ouch !

see then how it rocketed into early June as a falling Dollar supported a rising (relative priced) Gold !!!

always try to see things how they really are before taking your shot......:smart:

later all...........
N

more Gold comments to add to above
N

 

[NVP]

Nope - not a spare second today so far so will try to post later.......

jees.........

N

 

[Tradenet]

Hi NVP.
This is a great system and thanks for give it out F.O.C I noticed that most of your trades are based on mostly M5 intervals, how suitable is this system to something like H4 and Daily trades?
Thanks.

 

[NVP]

Hi NVP.
This is a great system and thanks for give it out F.O.C I noticed that most of your trades are based on mostly M5 intervals, how suitable is this system to something like H4 and Daily trades?
Thanks.

hey tradenet .......my pleasure

in honesty I chased the scalping (5min) a lot in the early days here.....my more recent activity has tried to ecourage all to step back and focus more on 15m and upwards

test and use the variations on what suits you.............my scalper (the 20ma delta 1) setting is a little tooo frantic on the 5mins so thats why the triple arrow version you are seeing at present is based on a 15m lowest timeframe (well the 15m arrow is set on a 14/3 settng which is a smooothed 20/1 :whistling)

hey play with settings as you want......the corrie approach is the key,the settings are just trimings :smart:

N

 

[NVP]

hey all.........

Overnight the dow dumped...........correlation went to plan so enjoy the moves why they last

yen is the main flyer (naturally) and even usd has been dragged upwards for a while

Can someone tell the NZD it should be falling ?

N

 

[NVP]

hi all ............sorry been tied up all day

just had a look at my triple arrow signals for today........only GBP and Euro (earlier) offered triple arrow sells....then you had to make the calls on what to buy against them

The CHF shone out as a buy regardless of what the US30 did in the day.......:innocent:

later
N

 

[NVP]

as I dissapear off again the Commdolls buying into TAG team looks promising

AUD and CAD are on a triple buy and the USd is a triple sell with us30 climbing

let the US30 get into 11,000 territory again though for a real confirmed move

good trading :smart:
N

 

[NVP]

and the GBP is a train wreck.....still