Dash Correlation trading

I use a Dash indicator for some time to see the differences between currencies. Great tool and info for a potential future direction. But, this is the only tool that we need?
I think to know exactly When and Where to enter will be better

Example. London Open today. The Dollar Index retrace from a strong Round Number (100 Levels Red Line on the Dollar Index) where it s was 2 days ago. Where will swing and When?

Look at this correlated levels on Dollar Index and Euro.





You can ask yourself, why the Dollar start today, and now to move back again and why not yesterday or tomorrow. Well, just happened (by miracle) to be exactly at that line, at the London Open and Euro the same, at a line that you can say I put it myself there. Wrong. This lines was there and yesterday and will be also tomorow.

In my correlated model, I know that Euro and the Dollar Index can be at a swing point, before any other indicator to show this swing. Why?

Because any indicator have to wait for a swing to happen before to show something.

In this correlated model I know it before Where and When we will have a swing! A potential place in Time and Space where are more chances to have a Swing!
The place in time and on horizontal space on 2 currencies on the same time.

I didn't take the Euro Short cos I'm short Euro Aud from yesterday and today I came to the PC a little to late to prepare for this move. Like we see, We have AUD in a very strong position on a Monthly base and Euro was and still is the best canditate to go against the AUD. That was my strategy from Yesterday NY Closing time.






This mode of trading, take in account the difference between currencies and a potential place in the future to enter based on psychological levels.

This model don't look at the past movement.

It correlate the general trends with the future events. The only history involved it s the trend of the month on all currencies.

I just demonstrated a model of trading where all that we need is:

1.What are currencies with the biggest potential to go on opposite direction
2.Where will be the place in the future where we can enter, after a pullback or retracement.
3.When to enter

What, Where and When!!! problem resolved!

The only problem is that we can not stay 24/24 to wait for that moment in time. Like I sad, today I came up to late and to bad for me.
The place and the moment was and now it s to late to run after the price.

What will be if we will try to create a tool that will tell us: What, Where and When are the biggest chances to have a trade?
What will be if by implementing this model to be in the market just on the right time and on the right place?
What will be if the RR will be at least 1.3 for every trade?


The tools that I use in this moment are Round Levels, Open Sessions. Close on Daily, Weekly, Monthly and the Dash.
No candles, no MA, no Oscillator, no Trendlines, no nothing from this tools that we are used.

The tool have to take the info from the Dash, to present it what are the potential candidate to a trade and to corelate that with this Round Levels. Beside that, Open Session are very important because offer the time from when a can start.
After the information will be presented (info or Alert) all that we need is to chose what are the specific pair and from when to enter. We can have pendings orders or direct entry on the market.
This tool can be an Indicator or EA. In the end, what is important is :

What, Where and When to Trade!!!!

TY honestknave for the tool.

Now, this trade was taken yesterday based on AUD power against most of the currencies, Euro tendency to be the weakest. All that informations came from the Dash.
No Fundamentals involved even I m in this side. A take it pure Technical and on real account. I can not test this model in history that why all my test trades are o real time and on real account. Aud Euro correlation was the trigger for this trade take it from here. It s set on Monthly.


The TP on this move is just above a round level where i believe will be a swing back. Now, all depends and what the Dollar will do at 100 Round Level. Will break or not, I don t know that.
Another reason it s the break of Last Year Close. Yellow Line.






Euro USD was the best trade of today London Open cos of Correlated Places

Next potential Swing on Euro today. No mather what timeframe, what others indicator will say, this place in the future and on horisontal level can be a swing back on euro.


Logic, USD CHF was also in the same direction and logic I didn't take the trade. To late at PC. But from Euro USD correlation even the CHF was not exactly at a supp levels was also a very good trade.


A tool that will take this trades only by choosing the pairs and the direction will take the trades on multi pairs with only one click.

Sessions correlation. We had a strong move on the Dollar and the Euro. Now look it s stopped.Are 2 options. The Ny will continue the move from where will be or will retrace back. Also we have some news on NY. THat will count also but, because we know we will have a new session and we know the time for that, maybe this was a place to take some profit, prior to start of the new session.

something like this?

1. I don't use Fibo or other levels. Only Round Numbers, Close on D, W, M and the direction from the Currency's power. You have there the extension for Fibo, maybe for you it work Sup/Rez levels, for me, are the horizontal places where I believe will be more orders to change the direction but I don't correlate with last movement in intraday or whatever. Reasons to move up and down in intraday are many, what I expect is to see that, after the fundamental story its happen, to see the resume of the move. Right mow, we had some news on the Dollar, we will have other news in 50 min. We will have options that expire at NY Cut. All that can make intraday moves. If the power of today move it s still strong to break 100 Level on Dollar index then the EUro will resume back down. From where, now I have this Round numbers levels on the picture above or Close and Low of Yesterday. That are my levels to reenter back. But now, I only have the Eur AUD sell.
   
   I try to use Fibo in many ways and from a long time ago. No result for me. I like to see that price reverse on some point where I believe will be and with fibo, most of the time price don't hear my prayers
   
   
   I don t know if 1.6000 level it s a fibo extension on other charts, maybe. For me, just it is this level that was a strong support for many days, weeks and now just was break it. This level will be here in the future, like, 1,5000 and others.
   
   
   Attached Image (click to enlarge)

   
   
   
   
   In Euro AUD this Round Number levels work. If will go higher there are other that now become rez. If not, that mean I had to go out at the start of NY.
   
   Attached Image (click to enlarge)

   
   

Subscribed.

thi is what I do for this style of trading: (mostly arbitrage/swaps with 1:1)

given the macro circumstances:
choose strong currencies (GBP, USD) for my case.
choose weak currencies (SEK, NOK)

watch crosses & swap each other:
GBPUSD, GBPSEK, GBPNOK
USDSEK, USDNOK
NOKSEK

things to watch for my pairs: EURUSD, Crude Oil, News, (bonus: EURGBP)

I will test + post results, your strategy seems very profitable.
I think you shouldn't trade on heavy news days...

___

Looking at higher TF (4H, 1D, etc.) should eliminate your concerns regarding R:R

1) how do you manage your money?
2) what is your lot sizing?

good strategy but its not correlation...its strength only you are using as far as i can see. here is my understanding of what may be is doable

the currencies that are strong versus weak MAY be negatively correlated or positively correlated.... check to see on a correlation table online of the previous day week month whatever timeframe you are using.....

then look to see what came first (master and what came next, slave)

the master slave relationship is 90+% like to continue for the next day week month according to theory

the way to trade it is when the two currencies widen or un-widen you expect it to catch up so to speak

that is correlation plus strength, as has been said before

you can thank me later

ps get with 1 hour man

pss one can use an overlay indicator to overlay two negatively correlated currencies and then observe visually what its all about very easy to see that way

can you elaborate more?

Sorry but I can't trade SEK, NOK. My broker don't allow trading.
MM it s simple. Losing trade, smaller risk. Winning trade, increased risk. It s still a manual trading method.

The main goal it s to take the risk out at first Sup/rez. The idea is to take percentage from the move according to pair move history. That why this model need some auto trading tool. Every pair have it s own story or a human interface will have to much emotions and to much to calculate. Some automatic tools need it.
Lot size. Percent from account/numbers of trades active. No more then 2% risk/trade no more 6% all.

TY. I will try to overlay with some indicator. Main driver now it s is the Dollar index. I follow his movement cos it s still a manual trading model. I have also the Dash on Daily but, the main problem are the options that expire. This dates have to be next implemented. A strong move like AUD this time will end at the end of the month with profit taking like today. Most of today, so far, AUD was in negative territory/take profit periods. http://www.marketwatch.com/optionscenter/calendar

Tomorrow is holiday in US. You see, a lot of variable to take. That why, in the end, some auto tools will need to be active.

I don't use Timeframes, only the break/strength correlation. Price will react the same on whatever timeframe I will look. That why I use only Line chart.

i'm no expert man...just contributing what i've read around the trading formus and such....

pick a correlated pair>>>>
https://www.mataf.net/en/tools/01-01...n#table_correl

then
http://www.forexfactory.com/showthread.php?t=4751

use a line chart if you can

then observe the correlations to ensure the previous 1 hour, 4 hour etc. whatever timeframe makes sense to you, was correlated to identify the master and the slave

I try it with Overlay indicator. The problem is that everything is relative or what I find to be strong enough is the correlation between :
Open Markets, (London,NY) +
Horisontal Levels +
Retracement.

That mean, if a strong currency (index strong not only on a pair) maintain his power against more then 1 currency on Daily base then, that will become candidate to buy against the weakest in the basket.
Now, the place and the time WHEN will enter it s important. Not anytime and not anywhere. Only if we had a retracement of that strong currency to a sup level and in the same time the other currency to be also at the sup level. All that at Open Markets, London or NY or after London Close.
Beside that, end of the month can change the direction for a intraday trade.

First potential trade it s on 1 Dec 2015 on AUD zone and on 2 Dec 2015 on the Dollar zone.