I really wanted to post about this in a kind of "look what I have noticed" type of post but was a little late to call and so held back
My personal favourite has been the gbpjpy that pair has been acting awesome!!!
One of my favourite Mav posts is this one
here, so for me what has been going on in the Yen complex has been the same as the lights being turned on. Now if you think very carefully about this post along with some very basic statistics applied with ACD its quite easy to make an indicator that shows you when the lights have been switched on
This post has been at the back of my mind since I read it.
Paris apparently has a rodent problem, let me talk about the roaches before they become a problem.
All correlations going to one is the sort of thing you see in a crash. On a smaller scale, in FX land, this can happen every time someone important starts yapping away. Let me explain.
For example, my number lines tell me I should go long GBP.AUD, and I do have an entry signal separately. So I start the day by looking at what is happening with the GBP pairs. To make this easy I have set up the Quote Spreadsheet in Sierra Chart so that all the GBP pairs are grouped together, so too the EUR pairs and the CAD pairs and so on.
Thus, rather than just jump in I watch what is happening early in the London open. Say GBP.AUD is slow to take off and then GBP weakens across the board against other currencies. That tells me something is happening with the GBP, so I wait and see. It could be someone said something about Brexit and so the pound is falling. That's not to say that I won't enter on that day, I would still expect that GBP.AUD would be a good trade, it was stronger than the rest, and a major event apart, I'll just wait for it to stop falling before I go long.
Another scenario would be all the other GBP pairs are moving up, but not GBP.AUD, so in this case I'll look at the AUD complex, maybe there is something happening with the Aussie. Again, I ask myself if this is a game changer and I don't take the trade, or a blip and I wait and fade.
To facilitate this I have 3 minute A levels and my regular A levels entered into the Quote Spreadsheet. Since I'm using the old spreadsheets, I still have colour formatting to flag the action, when I switch I'll have to use IF statements. Not as good, but no choice there. No I obviously don't score off the 3 minute charts but those serve as a sort of early warning of what is happening with the pound early into the London open., or whenever; the canary in the coal mine. If you have the Quote Spreadsheet set up, rather than try to watch a couple of dozen charts, you have all the critical stuff in one place, so you look at one 'page' rather than chase around. And you'll see a bunch of A downs or ups on the 3 minute levels before they hit the longer period chart levels.
This on a smaller scale is the roaches in action.
I don't actively trade stocks, but you can do the same thing there, grouping them by sector so that you can see what's happening with the rest of them before you jump in to a particular stock.
I don't do this with futures because there aren't that many items to group, at least those I trade.
