Best Thread Correlation Trading - Basic Ideas and Strategies

MichaelJohnFX · Feb 12, 2021

EURUSD

NVP · Feb 13, 2021

Forex Diary 2021

hey Gang .......hope everyone is well and thriving in 2021 .......

The Forex markets are providing ample opportunities as usual

just make sure you have a solid Strategy with efficient and consistent execution .....

my charts are the Fix Start indicator available here for a small donation to charity

Virgin Money Giving | Virgin Money UK

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

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Year to date Action 2021

red GBP after hitting early lows in january has cruised into first place as alpha Bull ...some 350 pip minimum swings on most pairs.....impressive if you called it ...I chased it up and down so far with some success along the way

blue Euro and now yellow Yen are the Bear plays to date .....both down to 150 pips so far on raw index

So big respect if you bought GBP into either of these guys in last 4 weeks .....

I did at times ...not because im smart ...but that my FXCorrelator based systems told me to ....its just relative strength at play in the Forex market ......its not rocket science (and i have been doing it for over 20 years now)

February so far .....

red GBP swung bear to bull so far generating nice swing profits (sound familiar to full year so far?)
Orange AUD a solid buy
Yellow Yen / Green USD / Blue Euro / Grey CHF all net Bear plays now ......

Some great plays so far in February - if you know what you are doing

Bitcoin , Gamestop and other trading dramas come and go ....but the solid and controlled nature of the G8 forex market makes it a solid performer year in year out .....thats why i trade it

take care
N

MichaelJohnFX · Feb 16, 2021

Would really like to see a washout of longs on JPY pairs. Will see the reaction we get of areas marked, if we get it. No need to chase it up here. IG sentiment report seems to suggest that's what's currently happening atm

Artycharty · Feb 17, 2021

Hi NVP
Can your gizmo tell me isomething
I want to track the other crosses against the major cross....Only when the major cross has had a big move down or up
To me relative strength only comes good if a major cross has had a pounding or a decent rally
Ie..The major for EUR is eurusd
Major for GBP is gbpusd

NVP · Feb 20, 2021

Forex Diary Week ending 19th Feb 2021

hey all

Fixstart indicator is available here for a small donation to Charity

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

ok another great week for red GBP ...140 pips bull area
Selling Grey CHF and Yellow JPY ......to -140s on Yen

Bulk moves came later in week which is unusual .....but better than never

Trading is not hard .....but you have to find an edge
I have used relative strength in forex for over 20 years now

have a great week next week
Neil
NVP

NVP · Feb 20, 2021

Artycharty said:
Hi NVP
Can your gizmo tell me isomething
I want to track the other crosses against the major cross....Only when the major cross has had a big move down or up
To me relative strength only comes good if a major cross has had a pounding or a decent rally
Ie..The major for EUR is eurusd
Major for GBP is gbpusd

hey there A

the basic FXCorrelator available in links below and attached does show the major crosses manually

if you bold out the Green (usd) line then every other line that crosses it is a majors cross signal

so on chart 1 ive shown many of the cross areas ....that will correspond to the 2 currencies concerned

OR alternatively

ive re calibrated the FXCorrelatior into a USD based indicator here attached

now every USD pair is shown .....and reflects the direction of the pair in question .....so remember CAD,CHF and USD all move in opposite direction to the other 5 currencies

Now whenever a line crosses the ZERO line it is a majors cross against the USD

you will need to reset the default to whatever you want it to be and hide the white X signal as it is showing the USD relative strength position.....(this can help)

ive attached 2 indicators ....1 is pure direction of paircharts and the other reflects relative strength (all surrencies flow in same direction)...im sure you will see the differences

easier ? .....hope this helps
N

NVP · Feb 22, 2021

very true indeed ....

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