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Comparative Price Action

  • #21
  • Jun 21, 2017 10:17am Jun 21, 2017 10:17am
GbpUsd vs GbpJpy is beginning to show moderate divergence on M15 & M5. At this point I'm not too excited, as this early movement doesn't seem to have much going for it now. However, you find something you like.
  • #22
  • Jun 21, 2017 5:13pm Jun 21, 2017 5:13pm
I totally missed this set up on GU vs GJ, because I didn't look back far enough:
Attached Image (click to enlarge)
Click to Enlarge Name: GU vs GJ June 21.png Size: 85 KB
  • #23
  • Jun 21, 2017 5:37pm Jun 21, 2017 5:37pm
These are great. There is no substitute for a video to explain finer details of a system.
  • #24
  • Jun 21, 2017 6:29pm Jun 21, 2017 6:29pm
using highly correlated pairs, then looking for divergence is a powerful method, from what i understand. in theory it is a 97% winning method. Have you tried doing what you are doing using uch and eu for example?

You can get a correlation meter and try any pair that is highly correlated at the time of the divergence.

I would think that Gu and Gj or other pairs can work but isn't necessarily the most correlated all the time. I think if they are correlated(i.e moving together) and then diverge temporarily, is likely the better/best strategy. I'm no expert, just conveying my limited understanding.

cheers & thanks for the thread

PS all of this can be automated with a correlation meter/dashboard and a divergence indicator. love to see it in action
  • #25
  • Jun 21, 2017 6:33pm Jun 21, 2017 6:33pm
Some smart things being shared here.. and a different perspective view being offered. will continue reading further before more comment. Not much work done on FF on correlations in my view...


UC/UJ past week or so have been interesting.. the diverge. I don't know if you get me but if you do, Holler me LOL.
It's in fear when people show what they truly value.
  • #26
  • Jun 21, 2017 6:53pm Jun 21, 2017 6:53pm
Quoting diamonddbw
{quote} +++++++++++++++++ Was about to post indicator. This Picture should give you enough info to set up OverLayChartLINE chart properly. Note any extra broker pair identifiers. i.e.: EurUsdm or EurUsdi. Some brokers may use these. If you fail to add them to inputs, the second line with not show up. {image} {file}

when we put that indicator on uch and eu(since they are strongly negatively correlated)... we may notice something interesting... is it a neverending cycle?

post a chart and where the perfect entries would be... its a good exercise to do
  • #27
  • Jun 21, 2017 10:37pm Jun 21, 2017 10:37pm
Quoting clemmo17
These are great. There is no substitute for a video to explain finer details of a system.
+++++++++++++++

Thanks Clemmo. Videos work well for me. Others prefer to read. Don't hesitate to ask questions if somethings I've muddled up isn't quite clear.
  • #28
  • Jun 21, 2017 10:49pm Jun 21, 2017 10:49pm
Quoting dagoods
using highly correlated pairs, then looking for divergence is a powerful method, from what i understand. in theory it is a 97% winning method. Have you tried doing what you are doing using uch and eu for example? You can get a correlation meter and try any pair that is highly correlated at the time of the divergence. I would think that Gu and Gj or other pairs can work but isn't necessarily the most correlated all the time. I think if they are correlated(i.e moving together) and then diverge temporarily, is likely the better/best strategy. I'm no...
+++++++++++++++++++

Good input, thank you for that dagoods.
In the original thread, which I mentioned in my 1st post, EurUsd vs UsdChf, was all they ended up trading. The problem with those pairs, at least for now, is the daily range is tiny. Last I looked at UsdChf, Wednesday's range was about 20. Can't work with that, and pay spread too. I do still watch them, but the last time I saw a decent divergence on them was 2 weeks ago.

I do use a strength meter to give me a general sense of where the power is. I've considered trying an oscillator to help with timing, but at this time, I've not tried it.

GU vs GJ has some potential, due to the Gbp in common. Also, it is the only currency that has held up it's daily range.
  • #29
  • Jun 21, 2017 10:51pm Jun 21, 2017 10:51pm
Quoting ensale
Some smart things being shared here.. and a different perspective view being offered. will continue reading further before more comment. Not much work done on FF on correlations in my view... UC/UJ past week or so have been interesting.. the diverge. I don't know if you get me but if you do, Holler me LOL.
++++++++++++++++++

Thanks Ensale.

UC is UsdChf or UsdCad?

I'm open to info on other pairs that work well together.
  • #30
  • Jun 22, 2017 5:32am Jun 22, 2017 5:32am
Quoting diamonddbw
{quote} ++++++++++++++++++ Thanks Ensale. UC is UsdChf or UsdCad? I'm open to info on other pairs that work well together.
UCAD sorri.
It's in fear when people show what they truly value.
  • #31
  • Jun 22, 2017 6:11am Jun 22, 2017 6:11am
Quoting ensale
{quote} UCAD sorri.
+++++++++++++++++++

Thanks. I'll have a look.
  • #32
  • Jun 22, 2017 6:37am Jun 22, 2017 6:37am
Here's a set up, on AU vs EU, that had a good entry shortly after London Open. AU hit it's target about 1/2 hr ago, had you gone down to the M15 to enter.

Since I'm on the wrong side of the pond, I was counting sheep, instead of pips....
Attached Image (click to enlarge)
Click to Enlarge Name: AU NU M30 June 22.png Size: 74 KB
  • #33
  • Jun 22, 2017 6:58am Jun 22, 2017 6:58am
Just entered sell trade (@ 114.28) based on M15 close. EJ vs ChfJpy. Target 25. SL 19.

My target is about 1 pip less 2X ATR, because of 3p spread, & 114.00 being so close.
Attached Image (click to enlarge)
Click to Enlarge Name: EJ vs ChfJpy June 22.png Size: 74 KB
  • #34
  • Jun 22, 2017 7:30am Jun 22, 2017 7:30am
Quoting diamonddbw
{quote} +++++++++++++++++++ Good input, thank you for that dagoods. In the original thread, which I mentioned in my 1st post, EurUsd vs UsdChf, was all they ended up trading. The problem with those pairs, at least for now, is the daily range is tiny. Last I looked at UsdChf, Wednesday's range was about 20. Can't work with that, and pay spread too. I do still watch them, but the last time I saw a decent divergence on them was 2 weeks ago. I do use a strength meter to give me a general sense of where the power is. I've considered trying an oscillator...

diamond, a strength meter is not a correlation meter. They measure two entirely different things... one measures strength, or how strong a currency is moving, which won't help your system in the least...while the other, a correlation meter, measures togetherness/moving in tandem(positive correlation) or moving opposite of each other(negative correlation)

Strength is utterly,completely useless for correlation divergences...

a correlation meter will flag for you you what pairs to use.... a strength meter will not. strength meters are fun toys that look colorful... correlation meters will show you what pairs you can use to spot divergence and time the cycle of the two and therefore trade accurately (in theory).

again, my view is that a dashboard can be made for this system.... divergences can be done with an indicator, and correlation meters already exist. all that is needed is for a coder to put the two things together. i would hope it would be done, open source, free for all.


2 cents
  • #35
  • Edited 8:00am Jun 22, 2017 7:36am | Edited 8:00am
Quoting diamonddbw
{quote} +++++++++++++++++++ Good input, thank you for that dagoods. In the original thread, which I mentioned in my 1st post, EurUsd vs UsdChf, was all they ended up trading. The problem with those pairs, at least for now, is the daily range is tiny. Last I looked at UsdChf, Wednesday's range was about 20. Can't work with that, and pay spread too. I do still watch them, but the last time I saw a decent divergence on them was 2 weeks ago. I do use a strength meter to give me a general sense of where the power is. I've considered trying an oscillator...

yeah a 20 pip range is small.....i'm imagining that a 20 pip range could be plenty for an ea to capitalize, perhaps..

you should post the overlay chart on eu and uchf anyway though...since.... you KNOW that eu and uch are highly negatively correlated.... the overlay of the two charts shows visually you know what they say...timing is everything
  • #36
  • Jun 22, 2017 7:43am Jun 22, 2017 7:43am
Quoting dagoods
{quote} diamond, a strength meter is not a correlation meter. They measure two entirely different things... one measures strength, or how strong a currency is moving, which won't help your system in the least...while the other, a correlation meter, measures togetherness/moving in tandem(positive correlation) or moving opposite of each other(negative correlation) Strength is utterly,completely useless for correlation divergences... a correlation meter will flag for you you what pairs to use.... a strength meter will not. strength meters are fun toys...
+++++++++++++++++

Whoa dude! "8•O" It is not now, nor ever was my intention to figure out correlation via a strength meter. I use it to give me a general sense of strength & weakness, that's all.

Should you come up with various chart systems to help us all in finding better trades, I like, very much for you to share them.
Thanks,
Darryl
  • #37
  • Jun 22, 2017 8:07am Jun 22, 2017 8:07am
Quoting dagoods
{quote} yeah a 20 pip range is small.....i'm imagining that a 20 pip range could be plenty for an ea to capitalize, perhaps.. you should post the overlay chart on eu and uchf anyway though...since.... you KNOW that eu and uch are highly negatively correlated.... the overlay of the two charts shows visually you know what they say...timing is everything
+++++++++++++++++++++++++++++++++

The EU vs UsdChf trade I mentioned was June 5th. M15 chart. Set up was about 2hrs after London Open.
Attached Image (click to enlarge)
Click to Enlarge Name: EU vs UsdChf June 5.png Size: 78 KB
  • #38
  • Edited 9:03am Jun 22, 2017 8:22am | Edited 9:03am
Quoting diamonddbw
{quote} +++++++++++++++++++++++++++++++++ The EU vs UsdChf trade I mentioned was June 5th. M15 chart. Set up was about 2hrs after London Open. {image}

excellent. TY D.


Here is what I am referring to: >>>>>>>>>>>>> https://www.forexfactory.com/showthr...18#post8376618

and

https://www.forexfactory.com/showthr...18#post8376618


can be found there>>>>

https://www.forexfactory.com/showthr...08#post8377208

https://www.forexfactory.com/showthr...99#post8376599

rajancr posted it.... i researched it and found it to be an intriguing idea but never followed through because i am not a coder....some folks here at ff that claim to be making money have hinted at this is what they are using.....

FWIW
https://www.forexfactory.com/showthr...99#post8376599
PS look once again at the test report

Notice he mentions that he pairs are correlated... he is using/testing uch and eu only and points out specifically that they are highly correlated pairs.......... that(the fact that they are highly correlated (negatively in that csee, but either way) is VITAL IMO.

2 cents
  • #39
  • Jun 22, 2017 8:39am Jun 22, 2017 8:39am
fwiw

they say 80% or better correlation is statistically significant, so a correlation meter can tell you quickly what pairs have that

for example this one put on eu tells you what pairs to look at compared with eu

see chart

PS here is another overlay chart indicator that can be used>>>>>>>>>> https://www.forexfactory.com/showthr...11#post8376611
Attached Image (click to enlarge)
Click to Enlarge Name: 80 percent or better at least.png Size: 63 KB
  • #40
  • Jun 22, 2017 8:43am Jun 22, 2017 8:43am
now all that i left D is for people to start posting 97% winning trades

PS if anyone has a correlation dashboard, please post it for us. TY
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