Best Thread Correlation Trading - Basic Ideas and Strategies

[maggieo]

Thanks K.

Hey everyone is out and about having fun and I'm stuck here at home in my wheelchair. Send me some souvenirs!!! LOL. I'll guard the fort.

 

[NVP]

hey - you're never alone on this thread.....

N

 

[NVP]

overnights

NVP

 

[Cactrader]

I've just gone long on aussie cos corrie going up and usd sloping down, on 15 min and daily (which I trust the most).

Am also long on gold, but a bit worried that usd changes direction cos index near a support.

 

[NVP]

hey all

great day for the mighty Dow .............and a few trades were on offer selling the
tag team

N

 

[NVP]

hey all the week mirrored todays action perfectly.........trade the higher trends :smart:

N

 

[maggieo]

Thank you.

hey - you're never alone on this thread.....

N

 

[maggieo]

I've just gone long on aussie cos corrie going up and usd sloping down, on 15 min and daily (which I trust the most).

Am also long on gold, but a bit worried that usd changes direction cos index near a support.

:?:How did you do C. Hope it worked out!

 

[NVP]

I've just gone long on aussie cos corrie going up and usd sloping down, on 15 min and daily (which I trust the most).

Am also long on gold, but a bit worried that usd changes direction cos index near a support.

hi my friend.....on Gold remember it is just another currency priced in USD

when the usd is falling on any FXCorrelator its a good opportunity to buy Gold as its becoming cheaper to non usd based buyers

I have mentioned gold earlier in this thread but dont comment much on it here these days as we have enough to worry about with the G8 currencies

N

 

[NVP]

I've just gone long on aussie cos corrie going up and usd sloping down, on 15 min and daily (which I trust the most).

Am also long on gold, but a bit worried that usd changes direction cos index near a support.

remember to watch the correlations on these 2 .........AUD traditionally moves with Gold so you are betting the similar trade

Maybe one day I will expand here oil and gold into the mix on this thead but to be honest we have enough to talk about re the G8 and Dow :smart:

N

 

[NVP]

I've just gone long on aussie cos corrie going up and usd sloping down, on 15 min and daily (which I trust the most).

Am also long on gold, but a bit worried that usd changes direction cos index near a support.

Hey C

ive recreated the 80/20 corrie and dow on a 15 tf that I know a lot of people like

set at 12pm midday yesterday

hmm....I would have gone in a little earlier as by 12pm the yen was rising and to be honest the A/U on the pair chart was a little over extended

but if you held the nerve it all came back to B/E......


N

 

[Adamus]

Neil,

I was just trying to impress a friend with my knowledge of currency correlations and I dug myself in a hole. So the EUR correlates to the Dow, right? But doesn't JPY as well? Because USDJPY goes down when Dow goes up - or is that, technically speaking, codswallop?

I have to come back to the master on this one time and again. You'll have to invent a memory aid for it like Never Eat Shredded Wheat.

 

[maggieo]

Hey C

ive recreated the 80/20 corrie and dow on a 15 tf that I know a lot of people like

set at 12pm midday yesterday

hmm....I would have gone in a little earlier as by 12pm the yen was rising and to be honest the A/U on the pair chart was a little over extended

but if you held the nerve it all came back to B/E......


N

Good morning N
I looked at the charts you displayed here and I'm wondering something. Ok, you have the 80 on 4h TF GPD, then 20 TF 1H. Right corner is the Dow. Bottom left corner is the A/U but I'm not sure how you have that one set up. It looks like the Dow is set up on the AU? on what TF (I don't have the chart in front of me so I can't tell right now). Is this something I've missed or not gotten to in my readings and video watching? It looks pretty interesting to me. Can you point me in the right direction cuz I like what I see?
Thanks Neil.

Oh did you get my message?

 

[Cactrader]

afternoon Neil and friends,

My long gold and aussie worked out OK after early frights. I'm getting used to the temporary draw downs thanks to this wonderful corrie tool. thanks Neil

 

[maggieo]

:clap:I'm so glad!!!

afternoon Neil and friends,

My long gold and aussie worked out OK after early frights. I'm getting used to the temporary draw downs thanks to this wonderful corrie tool. thanks Neil

 

[NVP]

Neil,

I was just trying to impress a friend with my knowledge of currency correlations and I dug myself in a hole. So the EUR correlates to the Dow, right? But doesn't JPY as well? Because USDJPY goes down when Dow goes up - or is that, technically speaking, codswallop?

I have to come back to the master on this one time and again. You'll have to invent a memory aid for it like Never Eat Shredded Wheat.

the master ?.......hahahahahah

a part time trader who got lucky on reinventing an indicator that has become famous on its own amazing merits ?

anyway heres my take on things ......


heres the pecking order on correlations regarding the Dow Futures


1) the yen is by far the numero uno top correlating currency to the Dow and equity market and its a negative one...........dow up yen down and dow down yen up

2) in second place is the usd.....god knows why but usd sticks tight to the yen mostly and as a carry trade / safe haven whatever..........I know what I see so another negative correlation currency to the Dow/Equities

3) in third place I watch for another negatively correlating currency to the dow ...the CHF........safe haven play and sometimes the chf is tighter than a scotsman's sporran to the yen than the usd is ............get all 3 moving together and you have a steamroller trade move to trade others against

they are my anchor currencies for trades and to me there is no such thing as the other G5 currencies moving WITH Equities.....they just look like it as the 3 currencies mentioned drive them to with the Dow due to a zero sum game on the G8

I have no currency at all that moves closer with the dow than any other.......just depends on economic news and conditions

if I could trade just by trading these currencies i'd be a millionaire now (ie sell yen when dow rises) ....my problem is I have to chose a currency to pair up with them and therein lies the problem ......those G5 currencies all have plans of their own and its sometimes not moving with the Dow :whistling

NVP

 

[NVP]

Good morning N
I looked at the charts you displayed here and I'm wondering something. Ok, you have the 80 on 4h TF GPD, then 20 TF 1H. Right corner is the Dow. Bottom left corner is the A/U but I'm not sure how you have that one set up. It looks like the Dow is set up on the AU? on what TF (I don't have the chart in front of me so I can't tell right now). Is this something I've missed or not gotten to in my readings and video watching? It looks pretty interesting to me. Can you point me in the right direction cuz I like what I see?
Thanks Neil.

Oh did you get my message?

hey m

the post was all 15m Timeframe charts.....no 1hr and no 4h ?

I promise to indicate if I am ever mixing timeframes on a post

N

 

[NVP]

hey all

ive been corresponding today with one of the best and most underated traders in the business......Lance Beggs

Lance is not a showman, just a cando trader who delivers and has produced 2 excellent publications now about price action trading ............modern masterpieces at affordable prices compared to most rubbish out there (hey - sue me )

but please dont buy them if you want a black box to tell you when to trade ...these are blueprint trading manuals for someone who wants to be a professional trader and or scalper.........jees they are good

yourtradingcoach.com

weve been chewng over the real holy grail of trading.............

c'mon take a guess and i'll suggest what it is in the next post

Clue...........Ive tried to launch the subject before here at T2W and the thread dived as no newbies take it seriously enough :smart:
N

 

[NVP]

damn.........ive forgotten as no one seems to be bothered about it ......what is it again ?

 

[NVP]

umm...............money management ?

well thats up there but thats easy - this skill is needed in lorryloads and is never studied enough and comes with practice

N