Interesting test, thanks for sharing. I guess you didn't trade USDJPY?; it would have been a BUY based on this test.
(binned per thread starter's request) Currency Strength with cont
- #1,866
- Aug 24, 2018 4:34pm Aug 24, 2018 4:34pm
- Joined Jul 2015 | Status: Trader | 2,299 Posts
WOW so if you can just do that randomly at the wrong time of day and with no logic to the buying / selling... Do you think if you used it with the top/ottom method of which I do, do you think you can win. I'm getting really annoyed of people on the factory moaning, arguing, saying you can't win... YOU CAN but you have to think differently to a retail trader.. People hate this method because it doesn't have an indicator.... Sorry but it's the truth... Retail traders are lazy and looking for an easy route. It doesn't exist. Over the last few years...
Master Neil,
The below is AUDUSD vs USDSGD {negative co related of AUDUSD based on Daily TF} and seem to have hit the top and bottom at the same time.
In addition to this, can one use Money Flow to provide any insight/confirmation? If so, how is it done?
Went through the money flow posts, but having a tough time wrapping my head around the role of gold.
Thanks
- #1,868
- Edited 10:03pm Aug 24, 2018 8:42pm | Edited 10:03pm
- | Joined Jun 2018 | Status: Trader | 77 Posts
Neil what is the entry signal for a trade when it hits top or bottom? There is a chance they it can go all the way up or down.
And are lower time frames like H1 and H4 also reliable?
And is this trade solid chfjpy hot the top on h4?
And one more thing. When we open the TA chat , the tops and bottoms change .
this is what i am talking about. i followed that trade of yours. but with the chat open and close, there is a different chart.
And are lower time frames like H1 and H4 also reliable?
And is this trade solid chfjpy hot the top on h4?
And one more thing. When we open the TA chat , the tops and bottoms change .
this is what i am talking about. i followed that trade of yours. but with the chat open and close, there is a different chart.
Forex is a wild wild beast. You cannot tame it. Just run wild with it.
- #1,871
- Aug 25, 2018 4:28am Aug 25, 2018 4:28am
- Joined Jul 2015 | Status: Trader | 2,299 Posts
{quote} You have to read money flow... See where the money is going... As in the test trades... AUDUSD was rising and the USDSGD was falling so (in theory) the AUDUSD will rise a lot. And as it hit the floor (AUDUSD) it has a high chance of rising... As the the USDSGD hit the roof at the same time, in theory the AUDUSD will mega rise.. It does take some getting used to.... If you have time over the weekend do some charts in tradingview or MT4 and just see where some hit the floor/ roof and try to see the money flow. You can keep trading them a a...
Thanks for the detailed explanation. I have taken negative corelation on Daily TF for the following USD pairs:
In all of the three
EURUSD-USDSGD
GBPUSD-USDNOK
NZDUSD-USDSEK
the negative correlated pairs had USD. Now coming to USDCAD, it's negative correlated pair is CADCHF
Is it alright even if the negative corelated pair does not contain USD? Extending the above logic, to see the moneyflow, is this correct way of clubbing USDCAD+CHFCAD?
Also, just want to confirm, on the negative correlated trade of GBPUSD vs USDNOK, if we want to use the default method of money flow {instead of GBPUSD+NOKUSD on the watchlist} , we look for:
{WCUGBP+XAUGBP} becoming negative while {USDWCU+XAUUSD} becoming positive?
Thanks
You will only profit from all of this Niel is sharing if you study study study. I have used a cut off of 80% for the negative correlation 19 qualified out of 28 pairs, see below the ranking, the higher the better for correlation, if you want the excel PM me. Put all of this in the watchlist on trading view following the nomenclature advised by Niel and observe the movement for a day at start/mid session or take snapshots at intervals, then you will see the light 
. Some are setting up nicely for next week, you can share and I will confirm if you are right, I only picked top 11 to monitor.
Safe pips
. Some are setting up nicely for next week, you can share and I will confirm if you are right, I only picked top 11 to monitor.Safe pips
D labour of a fool wearieth him cos he doesn't know how to enta d city
- #1,878
- Edited Aug 26, 2018 5:30am Aug 25, 2018 5:35pm | Edited Aug 26, 2018 5:30am
Hi Guys,
Some remarks from my side.
I see some discussion about overlay charts and correlation.
The overlay charting is just a calculation between two pairs by
matching the minimum and maximum of the two pairs over a certain period.
This is just done by shifting the two pairs based on max/min values of the two pairs to each other and some resizing of bars/pips, needed for 5 and 3 digit pairs.
If for one of the pairs in the bars to come the max/min value over the calculated period of one pair will change,
than the shift will change and also the charting. As simple as that.
So they look nice, but have limited value.
If a set of pairs in the charting have a high positive or high negative correlation coefficient
than the pairs look strong mirrored.
I recoded the overlay indicator based on correlation formula. To me this makes more sense.
Then we see how two pairs behave w.r.t. to each other.
Correlation coefficient can be max 1.0 and minimum -1.0.
For positive correlation you must set the mirror parameter to true in the overlay indicator.
Highly positive correlated pairs have the same behavior, pair A goes up, pair B goes up.
Pair A goes down, pair B goes down.
For highly negative correlation the opposite is true, pair A up, pair B down.
But sometimes they don't follow the "rules". Due to whatever reason(red news??, a politician says something stupid ??).
But after a while the pairs will find each other again.
See the chart below.
In this chart we see the two pairs twisting around each other, sometimes widening, narrowing or even crossing.
We need widening and then we can enter.
But also here the charting is based on the calculated period of time and the two pairs can change w.r.t. to each other as time goes on.
But much less, certainly if you take a longer period like 3/6 months.
The last chart is an example of negative correlation, but it works of course also for positive correlation.
BR
Some remarks from my side.
I see some discussion about overlay charts and correlation.
The overlay charting is just a calculation between two pairs by
matching the minimum and maximum of the two pairs over a certain period.
This is just done by shifting the two pairs based on max/min values of the two pairs to each other and some resizing of bars/pips, needed for 5 and 3 digit pairs.
If for one of the pairs in the bars to come the max/min value over the calculated period of one pair will change,
than the shift will change and also the charting. As simple as that.
So they look nice, but have limited value.
If a set of pairs in the charting have a high positive or high negative correlation coefficient
than the pairs look strong mirrored.
I recoded the overlay indicator based on correlation formula. To me this makes more sense.
Then we see how two pairs behave w.r.t. to each other.
Correlation coefficient can be max 1.0 and minimum -1.0.
For positive correlation you must set the mirror parameter to true in the overlay indicator.
Highly positive correlated pairs have the same behavior, pair A goes up, pair B goes up.
Pair A goes down, pair B goes down.
For highly negative correlation the opposite is true, pair A up, pair B down.
But sometimes they don't follow the "rules". Due to whatever reason(red news??, a politician says something stupid ??).
But after a while the pairs will find each other again.
See the chart below.
In this chart we see the two pairs twisting around each other, sometimes widening, narrowing or even crossing.
We need widening and then we can enter.
But also here the charting is based on the calculated period of time and the two pairs can change w.r.t. to each other as time goes on.
But much less, certainly if you take a longer period like 3/6 months.
The last chart is an example of negative correlation, but it works of course also for positive correlation.
BR
It is not important how often you fall down, but how often you get up again
- #1,879
- Aug 26, 2018 8:08am Aug 26, 2018 8:08am
{quote} You must be doing something wrong.. If your having trouble with tradingview use MT4 and the overlay chart indi posted earlier in the thread. I take it the trade was USDJPY. It's 04.30 so fried brain. Here is a CHFJPY chart for tradingview on the H1 and daily and from MT4 H1 and daily... The candles don't change and we only look back 200 candles.. {image} {image} {image} {image}
Hi Neil,
Sorry for bothering you sir. Can we use the negative correlation strategy and trade straight out of the 1 hour chart without reference to the daily chart for the ceiling and floor.
What I mean is if on the 1 hour chart the negatively correlated pairs hit the ceiling and the floor respectively can I venture to take a trade without referring to the daily chart to see if the pairs have hit the ceiling and the floor respectively.
Thank you
