Best Thread Correlation Trading - Basic Ideas and Strategies

DXY looking very bullish heading into next week. EUR not looking happy at all. GBP support at purple and higher TF chart suggests still very bullish. Only concern on this front is the strong DXY
 

Attachments

  • DXY.png
    DXY.png
    94.1 KB · Views: 90
  • GBPUSD.png
    GBPUSD.png
    89.5 KB · Views: 92
  • EURUSD.png
    EURUSD.png
    78.3 KB · Views: 90
Obviously cannot predict markets, but you can anticipate what you think "dumb money" would do when seeing certain chart patterns. I don't really believe this is a genuine breakout. Looking for something like this on GBPUSD. Very similar to EURNZD this week. Excellent move on the latter.

GBPJPY also looks tasty. Got stopped out on a GBPUSD trade this AM from shorting yesterday's high.
 

Attachments

  • GBPUSD.png
    GBPUSD.png
    54.1 KB · Views: 76
  • EURNZD.png
    EURNZD.png
    38.8 KB · Views: 75
NZDUSD. Ideally looking for an Impulse move into red and a strong reaction off (bearish pin bar). If measured, will leave.
 

Attachments

  • NZDUSD.png
    NZDUSD.png
    41.2 KB · Views: 82
MJ: It sounds as if you haven't had earlier dealings with Wine. There are a number of routes to install it and sometimes it works first off and sometimes it plays hard to get. Imo, it is worth persevering as it really does make life easier once it's working. I've been using it on Linux for several years and persuaded my brother (also on a Mac.) to give it a try. I really only suffered with Wine when I was changing distros a few months ago and it gave me a lot of grief - so much so that I abandoned my initial choice. Otoh, my brother (a software neanderthal) got Wine up and running on his Mac all by himself in only a few glasses.
 
MichaelJohnFX said:
NZDUSD. Ideally looking for an Impulse move into red and a strong reaction off (bearish pin bar). If measured, will leave.
Click to expand...
just keep in mind 21.45 gmt, NZ CPI... after the strong milk auction from Fontera, could see a first sign of inflation possibly.. that would definitely put any further rate cuts on ice , now that we have alerady priced out neg rates for New Zealand
 
cantagril said:
MJ: It sounds as if you haven't had earlier dealings with Wine. There are a number of routes to install it and sometimes it works first off and sometimes it plays hard to get. Imo, it is worth persevering as it really does make life easier once it's working. I've been using it on Linux for several years and persuaded my brother (also on a Mac.) to give it a try. I really only suffered with Wine when I was changing distros a few months ago and it gave me a lot of grief - so much so that I abandoned my initial choice. Otoh, my brother (a software neanderthal) got Wine up and running on his Mac all by himself in only a few glasses.
Click to expand...
Yup - I originally used wine to install it a few weeks ago. But it was a bit of a faff getting te actual indicator loaded. I'll give it another go tonight. Thanks anyway :)
 
Looking good for euro today. EURNZD & EURGBP. Colour lines above are just price targets / magnets. Often just major support and res areas

Edit [8:20] : EURNZD in heavy res. Could go either way (obviously). Would like to see current hourly candle close above previous red candle. A close below - bearish imo.
 

Attachments

  • EURNZD.png
    EURNZD.png
    96.7 KB · Views: 78
  • EURGBP.png
    EURGBP.png
    96.4 KB · Views: 78
Last edited:
Forex Diary 22nd Jan 2021

Hey Gang ....

my Fix Start indicator (shown) is available here for a small donation to the NHS :-

Virgin Money Giving | Virgin Money UK

Credit cards, Mortgages, Savings, ISAs, Investments and Insurance – Our quest to make banking better starts here
uk.virginmoneygiving.com uk.virginmoneygiving.com

wicked start to week as yen , CHF and USD all went Bull .....sucking in Trader positions for the Week

All change into Tuesday as they dropped and sold off rest of week so far
GBP reversed north into Wednesday.... generating some great intra day sessions
Euro was a very nice bull play Tuesday as well and had held from monday demonstrating real stoicism

I tell students never to open up weekly positions until all 3 sessions have played out on a monday ....you may get suckered by the markets .......as in this week

N
 

Attachments

  • Forex Diary 22 jan 2021.JPG
    Forex Diary 22 jan 2021.JPG
    159.6 KB · Views: 83
NVP said:
Forex Diary 22nd Jan 2021

Hey Gang ....

my Fix Start indicator (shown) is available here for a small donation to the NHS :-

Virgin Money Giving | Virgin Money UK

Credit cards, Mortgages, Savings, ISAs, Investments and Insurance – Our quest to make banking better starts here
uk.virginmoneygiving.com uk.virginmoneygiving.com

wicked start to week as yen , CHF and USD all went Bull .....sucking in Trader positions for the Week

All change into Tuesday as they dropped and sold off rest of week so far
GBP reversed north into Wednesday.... generating some great intra day sessions
Euro was a very nice bull play Tuesday as well and had held from monday demonstrating real stoicism

I tell students never to open up weekly positions until all 3 sessions have played out on a monday ....you may get suckered by the markets .......as in this week

N
Click to expand...
Agreed. Just to add to this...My most profitable days with data as far back as I could track i.e when the trade was opened were normally Tues, Wed and Thurs (with Tues being the most outstanding day). From experience, the market normally prints the high / low of the week on Monday / Tuesday and trends for the rest of it. London/US close on Thursday is normally where I've always seen some type of reversal in prep for the weekend rollover - EURO currently is a great example of this. Of course, doesn't happen all the time but when integrated with other concepts (really depends on how you trade), it can become really powerful information.
 
EURNZD. Bounce of res. Breakdown. Think we breakdown now. Target low of the week. Not sure we get it today, but remains target nonetheless. Will sit this one out as Friday, but will see where I can get an entry on monday and also where we close today.
 

Attachments

  • EURNZD.png
    EURNZD.png
    48.2 KB · Views: 80
Last edited:
A few charts going into next week...

EURGBP - Personally think we'll see significant expansion in the EUR next week. On a technical level, most pairs I trade seem to be suggesting such (EURAUD, EURNZD). My favourite is EURGBP. Looking for an impulse move into yellow before a big move up

GBPUSD - Looks like we're trying to form a potential H&S top. I'm looking for shorts in this one down to low of the range

JPY - Some of the JPY pairs look really juicy to the upside. AUDJPY/NZDJPY my two favourites.

The key to note here is that trades at big support / resistance levels are not taken blindly i.e just because it's support and resistance. Other concepts are brought into play such as corrective / impulsive moves (i look for the latter when trading swings).
 

Attachments

  • EURGBP.png
    EURGBP.png
    108.9 KB · Views: 80
  • GBPUSD.png
    GBPUSD.png
    90.2 KB · Views: 83
  • NZDJPY.png
    NZDJPY.png
    89.4 KB · Views: 77
  • AUDJPY.png
    AUDJPY.png
    83.1 KB · Views: 78
MichaelJohnFX said:
A few charts going into next week...

EURGBP - Personally think we'll see significant expansion in the EUR next week. On a technical level, most pairs I trade seem to be suggesting such (EURAUD, EURNZD). My favourite is EURGBP. Looking for an impulse move into yellow before a big move up

GBPUSD - Looks like we're trying to form a potential H&S top. I'm looking for shorts in this one down to low of the range

JPY - Some of the JPY pairs look really juicy to the upside. AUDJPY/NZDJPY my two favourites.

The key to note here is that trades at big support / resistance levels are not taken blindly i.e just because it's support and resistance. Other concepts are brought into play such as corrective / impulsive moves (i look for the latter when trading swings).
Click to expand...
Stopped out in the EURGBP one. Thought we had it this am with the move up. Otherwise, i don't really see much going on elsewhere. Bit of a slowish week.
 
You must log in or register to reply here.

Similar threads

S
Correlation Strategy
2
Replies
29
Views
32K
dreamliner
D
G
Gold Correlations
Replies
6
Views
2K
CharlesBakerfx
C
H
Correlation and Cointegration
Replies
6
Views
2K
tradern
T
F
Correlation Swap
Replies
0
Views
4K
Fartingale
F
A
Trading System Ideas
Replies
10
Views
4K
numbertea
numbertea
Top