Best Thread Correlation Trading - Basic Ideas and Strategies

[NVP]

Neil

Not sure if you are aware of those links:

Practical Application of Cluster Indicators in FOREX - MQL4 Articles
Theoretical Basis of Building Cluster Indicators for FOREX - MQL4 Articles

hey M

yep they are like Golddust and worthy ancestors of what I do now 👍

N

 

[NVP]

I am not sure if you are aware of this indicator: CCFP, a relative strength indicator,
works with mt4.

hey M

yep the original daddy and best of them all 👍

I came in on this kinda stuff (plus lots of research on FF) and asking people for help like Ferru_FX and TRO for help a few years back when it was still a marginal approach

the FXCorrelator (which is actually a simpler formula than the CCFP and its relatives) was born from there.....

N

 

[NVP]

hey all

busy today.............not sure how markets will play today into next weeks holiday .....USD is weak inside the 1hrs so had some nice buys on the AUD , NZD and more recently the Euro is rising well on lower TF's ....

good trading
N

 

[NVP]

one thought as I dissapear for a while ....

GBP is WEAK on low TF's

below 1.5665 and a falling Dow will be a G/U sell signal

N

 

[Mike Kshemaraja]

hey M

yep they are like Golddust and worthy ancestors of what I do now 👍

N

Neil

I see.

I was thinking today, if the complex pair system could be used in the smaller TF.
Apparently the Russian guy made big money on the 4h TF, of course the market has changed since then, that's why I was thinking in smaller TF. I probably will have a look at it and let you know.

 

[NVP]

one thought as I dissapear for a while ....

GBP is WEAK on low TF's

below 1.5665 and a falling Dow will be a G/U sell signal

N

back again ....that was a shame .....a fast 7-10 pips move south and then it span back .....such is life 😎

 

[NVP]

I see a few fast scalp pips selling usd in last 20mins or so.......GBP and AUD were nice ....

 

[NVP]

Neil

I see.

I was thinking today, if the complex pair system could be used in the smaller TF.
Apparently the Russian guy made big money on the 4h TF, of course the market has changed since then, that's why I was thinking in smaller TF. I probably will have a look at it and let you know.

i will need to have a look and remind myself of the settings etc etc ....worth a look

N

 

[NVP]

hey all

the markets are taking a breather on the 4h TF's .....

will the Dow finally get a little chance to Nudge north again as Buyers decide to pile in as markets are pretty cheap

or will the Spectre of China and Europe kick in again for some more pain

who cares ?.........Trade it when you see it :smart:

N

 

[NVP]

hey all

I notice a nice scalp sell on USd in last few 5min bars ....still going ....

 

[NVP]

ZZZZZZZZZ........US memorial day ....ZZZZZZ

 

[NVP]

last hour has been kind buying into the USD and selling stuff like the Euro and AUD....

 

[NVP]

nice Nice morning so far 👍

N

 

[NVP]

Heres another interesting thread at FF on correlation etc etc

I cant seem to get enough credits to post directly/contribute to any of these FF style correlation Threads so they are pretty closed shops to infrequent FF posters like me ....I have reached out in the past to the Thread starters by PM to offer help or collaborate but only a few have taken me up .....such is life :smart:

In my opinion there are some devastatingly good systems on FF regarding correlation and Strengthmeters but all of them are far too complicated in some areas (great programming though 🙂) and they then miss glaringly simple rules (IMO) in other areas that could really optimise returns.....

just my thoughts though and i'm sure they are all very happy with the various Threads and System's already 😉

Correlation trading - Page 7 @ Forex Factory

 

[NVP]

hmmm

huge wedges of buying USD in last 30 mins or so .....nice !

 

[NVP]

Hey all

heres a busy picture !

left Chart = Dow for May
next right = 1000ma FXcorrelator for May
next right = 1 ma monthly FXcorrelator x-men (May)
far right = EURJPY monthly chart

so what do we see ?

so business as usual …..a falling Dow driving USD and Yen North and offering some great sells on the traditional pairs..with EURJPY the pick of the bunch at 6% gain

sometimes perhaps its not so hard to make money in the currency markets ? 😉

N:smart:

 

[NVP]

I see the Dow is rallying on lower TF's .....👍

usual trades on USD and Yen apply :smart:

N

 

[angelnish]

Does any correlation exists between the Forex market & the stock market ? if yes
then, what is it?

 

[NVP]

Does any correlation exists between the Forex market & the stock market ? if yes
then, what is it?

Hi A

Equities up usually mean the Yen and USD down

and vice versa ...

N

 

[Mike Kshemaraja]

Neil

Do you think that correlation can be used in short terms, because to me seems that correlation in the short term cannot be taken as an edge.

Please correct me if I am wrong.

Mike