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-   -   Trading the Cable swings via averages (https://www.forexfactory.com/showthread.php?t=849587)

Nala66 Nov 18, 2018 10:22pm | Post# 1

Trading the Cable swings via averages
 
Intro.
My name is Alan, been trading for donkeys years.

Now specialise in trading Cable only via a very effective but simple method based upon the evidence presented by the market and not what I may think will happen down the track.

I am going to start this thread with the chart setups and then move on to what to look for, timing, targeting, money management etc.. and whatever else I find relevant at the time of writing.

Overview...

If you don't believe Price is always trying to make HH or LL averages then it is pointless for you to continue reading this thread. This can easily be proven as a fact just by way of simple observation of the chart itself.

I would ask all to bear with me until I have completed each section and then ask "Any questions?"

So without further wordage I will begin.

Hope you enjoy the ride.

Nala66 Nov 18, 2018 10:43pm | Post# 2

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This is the first of the 5 minute chart setups.

We want a plain old black and white chart because it prints well to make a hard copy record of the events. We can put the date on them and keep them in a folder as a permanent record we can easily access whenever.

So we set the properties of a 5 minute GBP/USD like this...
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Nala66 Nov 18, 2018 10:52pm | Post# 3

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If you have done this correctly you should now have a completely white chart with only the current price line showing.

Next we are going to add the average which is a 26 period EMA as a double thickness black line So open the navigator select Moving Averages and set the parameters like this...
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Nala66 Nov 18, 2018 10:55pm | Post# 4

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So far so good you should have the same as this...
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Nala66 Nov 18, 2018 11:10pm | Post# 5

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Now this next bit is not really needed but I find it helps until you get use to watching multiple charts and some people are using small screens such as laptops so this additional info helps see the picture.

We are going to add both the current high and low prices and put them on a shade or two lighter such as dark grey.

Price itself is an average but it is a 1 period simple moving average (SMA)

Putting two of these on the chart one set to the high and the other set to the low we will get the current distances of the bar movements tops and bottoms.

So set the SMA parameters thus...

Noting the line thickness is the thinnest and one is set to high and the other is set to low.
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Nala66 Nov 18, 2018 11:16pm | Post# 6

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That is all we need to do to set up this 5 min chart. It should be nice and clear, free from clutter and instantly easy to read the direction.

Looking like this...
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Nala66 Nov 18, 2018 11:21pm | Post# 7

Ok that is done I will leave it now until tomorrow to setup the next set of charts to give folks a chance to ask questions.

Sorry if I am going slow here but some folks need a lot of detail so I have to move at the slowest pace.

You might want to set the work you have done as a template with a name of your choice.

EDIT...Can you please put your questions in this thread and not as a private message, this saves me answering the same question over and over.

datdle Nov 18, 2018 11:24pm | Post# 8

intersting . so far, you dont have any tools for filtering noise ?

kofix11 Nov 19, 2018 12:18am | Post# 9

Thank you, interested, subscribed.
Plain explained, well done.

Nala66 Nov 19, 2018 1:11am | Post# 10

intersting . so far, you dont have any tools for filtering noise ?
Yes I do but I will explain that later...

Nala66 Nov 19, 2018 1:12am | Post# 11

Thank you, interested, subscribed. Plain explained, well done.
No worries hang in there.

classy Nov 19, 2018 3:36am | Post# 12

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congrats for your personal thread wish you good luck k and happy trading .nala ,i know you are master of cable trading hope to learn interesting things from you .most important please don't stop/close thread in the middle like so many thread .
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Nala66 Nov 19, 2018 3:51am | Post# 13

congrats for your personal thread wish you good luck k and happy trading .nala ,i know you are master of cable trading hope to learn interesting things from you .most important please don't stop/close thread in the middle like so many thread . {image}
Thanks but alas at some point I will have said all I can say unless I go completely off the topic.

I should think a week from today most will have a good grasp of the topic and hopefully we can restrict our conversations to some of the finer points, indeed I hope someone can actually improve the mechanics of it all.

All I wish to add at this stage is this is probably very radical to most peoples concepts.

HanifBukhari Nov 19, 2018 4:00am | Post# 14

best of luck for your thread.

Nala66 Nov 19, 2018 4:38am | Post# 15

best of luck for your thread.
Thanks and if there is something not understood please speak up because I read charts not minds.

matthew89 Nov 19, 2018 5:47am | Post# 16

Very interested to see where this thread goes, subscribed...

Nala66 Nov 19, 2018 5:52am | Post# 17

Very interested to see where this thread goes, subscribed...
Cool..thanks for subscribing

Goyatrade Nov 19, 2018 7:02am | Post# 18

Congrats! Subscribed and curious! Am also studying your Quartile method to supplement my own Cable trading! Appreciated!

vmelnikov Nov 19, 2018 7:23am | Post# 19

Interesting, I'm in.

matthew89 Nov 19, 2018 11:22am | Post# 20

Hi Nala66, i dont want to sound impatient! But are you going to go into detail about the rules surrounding your strategy? i.e Entry, Exit, TP and SL?

Nala66 Nov 19, 2018 6:19pm | Post# 21

Congrats! Subscribed and curious! Am also studying your Quartile method to supplement my own Cable trading! Appreciated!
Cool you will find later down the track you can use the Quartile to trade this way and also another type of Quartile which I will also explain.

Nala66 Nov 19, 2018 6:20pm | Post# 22

Interesting, I'm in.
No worries...welcome

Nala66 Nov 19, 2018 6:22pm | Post# 23

Hi Nala66, i dont want to sound impatient! But are you going to go into detail about the rules surrounding your strategy? i.e Entry, Exit, TP and SL?
Yes I am... Entry exit and target so you know precisely how much to make (money management section)

Nala66 Nov 19, 2018 6:54pm | Post# 24

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Ok so yesterday we set up the white background 5 min chart and normally that is all I have on that chart. However I have 4 23 inch monitors so I can spread myself out a bit, I know some use laptops with smaller screens so for now I am going to add a little more to cater for those folks.

This involves the timing of the trade, the approximate time I start work and I call it Bar 108.

Switch on your Period Separator and measure 108 bars from it with the rectangle tool. Copy the rectangle and place the copy at the next Period Separator.
Now using the Cycle line tool span the two rectangles to give you lines that will continue into the future forever.

On the chart below I have used bold black so you can see them clearly, normally I would have them just as a light coloured (grey) dotted line just like the Period Separator ones.

As you should be able to see, this is a good time to begin trading, approximately.

Once done you can turn off the Period Separator Lines as they are no longer required.

So you should have this ...
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ppxdf Nov 19, 2018 6:54pm | Post# 25

hello Alan
Thanks for opening this thread
I have followed you in other thread and I am very interested in this strategy of swings via averages

Nala66 Nov 19, 2018 7:15pm | Post# 26

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Now on this chart I mark the swing highs and lows with a line and just for your benefit I have put a few X's where the price exhausted itself. I know you cannot see this exhaustion as yet because we haven't setup the other charts but still you can make some observations even on this chart alone. I will go into detail of these observations later, for now just continue with the setups.

Note how you can barely see my cycle lines now.
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Nala66 Nov 19, 2018 7:47pm | Post# 27

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Now we are going to add the Wilders wonder tool, the Relative Strength Index (RSI). In fact we are going to use two of them.

A word about comparisons...

When making comparisons I compare average swing to average swing, never comparing price to average. Zig-zagging an average or bouncing is fairy meaningless because the average is always chasing the price NOT THE OTHER WAY ROUND.

In the same way I compare RSI to RSI as you will later see it gives us a very good insight for the next move of price.

I know this may sound confusing but hang on there it should all become clear and simple to understand.

OK back to adding the RSI's again I will put them on this 5 min chart for your benefit, mine are on a separate chart.

So setup a 14 period RSI with the levels of 80 and 20 only and the colour being a solid black line, like this...
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Nala66 Nov 19, 2018 7:54pm | Post# 28

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Next we are going to overlay a 5 period Relative Strength Index the 14 period

These are the settings for this, noting it is applied to the Previous Indicators Data
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Nala66 Nov 19, 2018 7:57pm | Post# 29

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Now you should have what looks like a complete mess when squashed up like this.
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Nala66 Nov 19, 2018 8:23pm | Post# 30

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OK lets now get a bit of colour in our lives and setup the other charts and you can make these as pretty as you like but keep them free of clutter, you don't need any additional stuff which may just confuse the issue.

I have all the GBP/USD from the 1 minute through to the 1 month.

We only need to set up one chart and make a template of it to set the additional charts. Give the template a name you can recognise such as Antegentacularcircumgirations or BaBs which is Bull and Bear system.

The same as we used to setup the 5 min but with a background that is not so harsh on the eyes. Notice how I use the bar chart because really I am only interested in tops and bottoms and also note I have a white line chart which is simply a 1 period SMA set to the close. My 26EMA is coloured but it does not have to be so.
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Nala66 Nov 19, 2018 8:25pm | Post# 31

OK that should give you enough work for the day.

Tomorrow we still start to make observations.

Any questions...

Munizdivisas Nov 19, 2018 8:59pm | Post# 32

can you post the template, I can't get my chart look that good.

Thanks

Nala66 Nov 19, 2018 9:15pm | Post# 33

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can you post the template, I can't get my chart look that good. Thanks
Sure, but to look like mine you will need to plug in the colour EMA
#MA_in_Color.ex4
My Night Template.tpl
My Bright Template.tpl

Nala66 Nov 19, 2018 9:27pm | Post# 34

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Oh and I also have a spread indicator, top left corner of the Night template
SpreadIndicator.ex4
SpreadIndicator.mq4

Nala66 Nov 19, 2018 9:42pm | Post# 35

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This is all the charts squashed onto one screen...
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sam69 Nov 19, 2018 11:32pm | Post# 36

Ok so yesterday we set up the white background 5 min chart and normally that is all I have on that chart. However I have 4 23 inch monitors so I can spread myself out a bit, I know some use laptops with smaller screens so for now I am going to add a little more to cater for those folks. This involves the timing of the trade, the approximate time I start work and I call it Bar 108. Switch on your Period Separator and measure 108 bars from it with the rectangle tool. Copy the rectangle and place the copy at the next Period Separator. Now using the...

hi nala66,

thanks for the thread..
my question is, how to measure/count 108 bars?...

thank you!

EDIT: template downloaded!

Nala66 Nov 20, 2018 12:16am | Post# 37

{quote} hi nala66, thanks for the thread.. my question is, how to measure/count 108 bars?... thank you! EDIT: template downloaded!
That is very simple.

As you drag the box sideways it tells you the width in bars and the height in pips just where your cursor is.

dokopy Nov 20, 2018 1:49am | Post# 38

The Global Prime Broker is a vertical line at 7:00 GMT. Is that right?

Nala66 Nov 20, 2018 1:53am | Post# 39

The Global Prime Broker is a vertical line at 7:00 GMT. Is that right?
Well mine says 00:00 via the chart time and my cycle lines are at 09:00 chart time so that is 7am GMT

KyBakka Nov 20, 2018 4:09am | Post# 40

Thank you for your hard work Nala66, with your Template, my charts now look completely like yours. Waiting for your next lesson tomorrow.


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